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Softa [21]
3 years ago
10

Bay City Mining, Inc. has a price of $20 a share, outstanding shares of 2.5 million, retained earnings of $1 million dollars, an

d a dividend yield of 2 percent.
It has a price-earnings ratio of:

a. 50, which is high by historical standards.
b. 50, which is low by historical standards.
c. 25, which is high by historical standards.
d. 25, which is low by historical standards.
Business
1 answer:
weqwewe [10]3 years ago
5 0

Answer:

a. 50, which is high by historical standards.

Explanation:

a. 50, which is high by historical standards.

It is high because  current price  is high than earnings.

Earning yield is  the reciprocal of price earning ratio that is = 1/ (P/E ratio) expressed as a percentage.

So

PRice Earning ratio = Market price per share/ Earning per share

Price Earning ration= $20/ 0.4 = 50

Earning per share= Earnings/ No of shares outstanding

EPS= $ 1 million/$ 2.5 million = 0.4

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Zach is a franchisee with Digger's Doggies, a chain of hotdog shops. He was doing well until several other Digger's Doggies fran
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Answer:

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3 0
4 years ago
1. Diane Lexington begins business as a real estate agent with a cash investment of $28,490 in exchange for common stock. 2. Hir
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Answer:

Explanation:

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Date            Account Titles          Ref.                 Debit ($)        Credit ($)

Oct. 1              Cash                                                          $28,490

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Oct.2               No journal

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Oct.4              Account receivable                                   $3,600

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Oct.5              Accounts payable                                     $850

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5 0
3 years ago
Why is it important to make mistakes?
ss7ja [257]
It is important to make mistakes because that is how we learn from them. We become better as person from making a mistakes.
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