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Sedaia [141]
3 years ago
9

You are trying to choose between two stocks, Widget and Gadget. Widget has a current stock price of $30 and earnings per share o

f $2.00. Gadget has a current stock price of $20 and earnings per share of $1.00. Both are in the media industry and the average P/E ratio (price-to-earnings ratio) for this industry is 15. Use the P/E ratio to determine which stock you anticipate will have higher earnings.
Business
1 answer:
gizmo_the_mogwai [7]3 years ago
7 0

Answer:

Gadget will have higher earning.

Explanation:

Price Earning Ratio is the ratio of Market price to the earning per share. PE Ratio measure the effect of earning over the market price of the company.

Widget

Stock Price = $30

Earning per share = $2

PE ratio = $30 / $2 = 15 times

Gadget

Stock Price = $30

Earning per share = $2

PE ratio = $20 / $1 = 20 times

Gadget will have higher earning.

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Sweet Sue Foods has bonds outstanding with a coupon rate of 5.50 percent paid semiannually and sell for $1,917.12. The bonds hav
RoseWind [281]

Answer:

Current yield=5.74%

Explanation:

Calculation for the current yield for these bonds

Current yield = (.055× $2,000)/$1,917.12

Current yield =$110/$1,917.12

Current yield=0.0574*100

Current yield=5.74%

Therefore the current yield for these bonds will be 5.74%

6 0
3 years ago
Carrie and Michael are married and will file a joint return. In addition to income from wages, they have a $5,000 long-term capi
Elena L [17]

Answer: 15%

Explanation:

From the question, we are informed that Carrie and Michael are married and will file a joint return and that they have a $5,000 long-term capital gain from the sale of stock. We are further told that their 2019 taxable income is $121,500.

Based on the above scenario, their capital gain will be taxed at a rate of 15%. This is due to the fact that when filing their status, they will be regarded as married and the applicable rate is 15% for an income that is between $78,751 and $488,850. Since they've $121,500 their rate will be 15%.

6 0
4 years ago
Canniff Air uses two measures of activity, flights and passengers, in the cost formulas in its budgets and performance reports.
HACTEHA [7]

Answer:

Actual Operating costs         $231,250  

Planned Operating Costs  budgeted = $ 235058

Planned Operating Costs at actual level   = $ 232430

Explanation:

The Planned costs are the costs estimated at the planned level of activity.

The actual costs are costs that actually occur.

But flexible costs are those which are planned ( determined) at actual level of activity.

Canniff Air

                                       Actual                 Planned

Operating costs         $231,250              

The cost formula for plane operating costs is $56,960 per month plus $2,634 per flight plus $6 per passenger.

Planned Operating Costs= $56,960+ 2634 *67 flights + 6*270 passengers

                                        = $ 56960 + 176478+ 1620

                                         = $ 235058

Actual Operating Costs = $56,960+ 2634 *66 flights + 6*271 passengers

                                         = $ 56960 + 173844+ 1626

                                         = $ 232430

We put the values in the given formula to obtains these costs both planned and actual.

4 0
3 years ago
Paolo is always coming up with new ideas and seeking funding to explore them. He sees opportunities in the marketplace and wants
frozen [14]

Answer:

Letter C is correct.<u> Proactive.</u>

Explanation:

In this case, it can be said that Paolo has a proactive personality.

This personality trait is highly valued in the business world. Usually a person with a proactive personality has a very positive business outlook.

They can stand out as entrepreneurs, for being able to anticipate a consumer need and achieve business success. It also has a chance to gain prominence in the corporate environment, due to the effort of planning and executing new tasks and ideas and the possibility of anticipating negative situations and creating opportunities.

5 0
4 years ago
Countercyclical monetary policy means that _________________. Select the correct answer below: the Fed lowers interest rates dur
vlabodo [156]

Answer:

the Fed lowers interest rates during recessions and raises them during economic booms

Explanation:

Countercyclical monetary policy is a monetary policy used to work against any cyclical tendencies in order to slow down the economy when it is booming, and to stimulate economic activity then there is a recession.

Example of such policy is therefore a reduction of interest by the Fed during recessions and an increase of interest rate when there are economic booms.

5 0
3 years ago
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