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ira [324]
3 years ago
11

A firm has a stock price of $68.00 per share. The firm's earnings are $85 million, and the firm has 20 million shares outstandin

g. The firm has an ROE of 11% and a plowback of 70%. What is the firm's PEG ratio
Business
1 answer:
erik [133]3 years ago
3 0

Answer:

2.1

Explanation:

A firm has a stock price of $68.00 pet share

The firm's earning are $85,000,000

The firm has $20,000,000 outstanding

They have an ROE of 11% and a Plow back ratio of 70%

The first step is to calculate the EPS

EPS= $85,000,000/$20,000,000

= $4.25

P/E= $68.00/$4.25

= 16

g= 11×70

= 770/100

= 7.7%

Therefore the PEG ratio can be calculated as follows

PEG ratio= 16/7.7

= 2.1

Hence the firm PEG ratio is 2.1

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Assume a perfectly competitive industry making peanuts is in long-run equilibrium. The price per pound of peanuts is $2. Next, a
rjkz [21]

Answer:

The price of the item in long run equilibrium will be the same i.e $ 2 per unit

Explanation:

Given

The equilibrium price in the long run = $ 2 per unit

The price of the item in long run equilibrium will be the same i.e $ 2 per unit

The increase of price in short run will not have much impact on the Average variable cost and hence in long run the price will remain constant.

4 0
2 years ago
Most routine business messages will follow the​ _____
den301095 [7]

Answer:

The answer is stated below:

Explanation:

Routine business messages are those messages which are positive and help the workers in order to perform or conduct the daily business. The common and usual kind of routine message are making the requests for providing the information, handling the complaints, seeking the dispatch details of the delivery, providing the instructions and the updates the service.

The most routine business message follow the:

  • Readers mostly respond in a positively manner to them.
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7 0
3 years ago
Each marketing function occurs _____ a product or service is developed and sold.
Julli [10]

Each marketing function occurs every time a product or a service is developed and sold in the market.

<h3>What is a marketing function?</h3>

A marketing activity, which is essential for the transfer of goods from place of origin to the place of consumption in the market, is known as a marketing function. It is a continuous process.

Hence, option C holds true regarding a marketing function.

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brainly.com/question/17371355

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3 0
2 years ago
Assuming no safety stock, what is the reorder point (r) given an average daily demand of 50 units, a lead time of 10 days and 62
love history [14]

Assuming no safety stock, the recorder point will be 500(50*10).

Safety stock is the additional quantity of a product that's saved within the warehouse to prevent an out-of-stock scenario. It serves as insurance against fluctuations in demand.

To in addition understand Z-score, believe that no safety stock is carried. In this situation, the Z-score is 0. then again, there can be sufficient inventory to satisfy demand in 50 percent of cycles.

A reorder point (ROP) is a specific stage at which your stock desires to be replenished. In other phrases, it tells you whilst to vicinity an order so that you won't run out of stock. The reorder factor system is lead time demand + safety stock. Of course, you need to determine what your lead time demand and safety stock numbers are to determine a correct calculation.

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7 0
2 years ago
How much money should be deposited annually in a bank account for five years if you wish to withdraw ​$5 comma 500 each year for
Zarrin [17]

Answer:

The initial deposit should be $ 25.46

Explanation:

The Annuity formula is

P=R [1−(1+i)^-n/i]⋅(1+i)

Where

P= Initial deposit

R=Regular Withdraw amount

i=Interest rate

n=Number of years/periods

After entering corresponding values in the formula we get $25.46

so P (which is our initial deposit)=25.46

6 0
3 years ago
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