What rule did Michael Jordan break by wearing Air Jordans out onto the basketball court?

Fontaine Inc. recently reported net income of $2 million. It has 500,000 shares of common stock, which currently trades at $40 a

Firlakuza [10]

Answer:

$50

Explanation:

Given,

Current Net income = $2,000,000

No. of common shares today = 500,000

Current market price per share = $40

Anticipated Net income in 1 year = $ 3,250,000

Anticipated No. of common shares in 1 year = 500,000 +150000 =650,000

From this data, then

The current Earnings Per Share(EPS) = $\frac{2,000,000}{500,000} = 4$

Current Price/Earning ratio = $\frac{ Price per share}{EPS} = \frac{40}{4} = 10$

Anticipated EPS in 1 year= $\frac{Anticipated Net income in 1 year }{Anticipated No. of common shares in 1 year } = \frac{3,250,000}{650,000} = $5$

If the company's P/E ratio remain as that of the current at 10, then

The anticipated price of stock in 1 year = Anticipated EPS * P/E ratio in 1 year

= $5 *10 = $50

4 0

3 years ago

What rule is important to remember when evaluating risk and return? The higher the risk, the higher the potential return. The hi

andrew-mc [135]

Answer: The higher the risk, the higher the return.

Returns from an investment refers to the gains or losses over a specified period, and is quoted as percentage.

Risk refers to the possibility or the chance that the actual return that is earned is greater than or less than the return expected by the investor. Thus, uncertainty is another name for risk.

If the returns from an investment are certain, the risk involved is low. When risk is low, the returns are also low. For e.g. the return from a T-bill is low because the risk of default is zero, since the government can print money to fund its debt.

The higher the level of risk involved, the greater the potential for a higher return.

5 0

3 years ago

Read 2 more answers

Efficiently scheduling material and labor is an example of ________________ decisions

Bas_tet [7]

A) strategic
B) tactical
C) operational
D) short-term
E) none of the above

its b tactical

3 0

3 years ago

Rene would like to explore a career that would allow her to work with customers or clients. Which two of the following careers a

natima [27]

I believe the answer is:

(B)radio announcer

(D)graphic designer

It is very common for Radio announcer to invite and interview guests and They are basically interacting with clients and fulfilled the client's wish regarding how their products need to be advertised.

Graphis designer, also require constant interaction with the customers in order to know whether the desing that is made by the designer is suitable with the image that the customers have in mind.

3 0

3 years ago

Read 2 more answers

Petroski Natural Dying Corporation measures its activity in terms of skeins of yarn dyed. Last month, the budgeted level of acti

guapka [62]

Answer:

$577 Unfavorable

Explanation:

The calculation of spending variance for dye costs is shown below:-

Spending variance for dye cost = (Standard rate - Actual variable) × Actual units

= ($0.67 - $13,910 ÷ 19,900) × 19,900

= (0.67 - 0.69899) × 19,900

= $577 Unfavorable

Therefore for computing the spending variance for dye costs we simply applied the above formula.

4 0

3 years ago