1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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.

You might be interested in
How do countries benefit by being members of economic​ communities? A. The balance of payments become equalized B. Tariffs on im
Alex_Xolod [135]

Answer: Trade policies are coordinated and there are less restrictions on imports and exports.

Explanation:

An economic community is an agreement entered into by countries to enable higher cooperation in areas of politics and economic activities. In an economic community, the charges placed on import and export among member nations is minimal. An example of an economic community is the ECOWAS.

3 0
3 years ago
(WILL GIVE 29 Points & Brainlest) PLEASE HELP!!!!!!!! ):
Tanzania [10]

Answer:

Career Clusters have the knowledge and skills that learners need as they follow a pathway toward their career goals.

6 0
3 years ago
Margie Company produces a single product and has provided the following data concerning its most recent month of operations: Sel
DiKsa [7]

Answer:

$225,400

Explanation:

The computation of total contribution margin under variable costing is shown below:-

Sales (4900 × $88)                             $431,200

Less:Variable cost  

Direct material (4900 ×  $12)              ($58,800)  

Direct labor (4900 × 23)                    ($112,700)  

Variable manufacturing overhead

(4900 ×  2)                                            ($9,800)  

Variable selling and administrative

expenses (4900 × $5)                         ($24,500)  

Total variable expenses                     ($205,800)

Contribution margin                           $225,400

Therefore the total contribution margin under variable costing is $225,400

6 0
3 years ago
Investments in debt securities acquired principally for the purpose of selling them in the near term are classified as ________
tensa zangetsu [6.8K]

Investments in debt securities acquired principally for the purpose of selling them in the near term are classified as<u> trading</u> securities.

The definition of investment is an asset that is purchased or invested to build wealth and save money from hard-earned income or capital appreciation. The importance of investment is primarily to gain an additional source of income or to make a profit from the investment over a period of time.

Form of investment shares. Knead. Mutual funds and ETFs. bank product. option. Savings for pension, retirement, and education. Your investment allows you to be independent and not depend on other people's money when you need it financially. You can pay enough for your needs and desires in life.

Learn more about Investments here: brainly.com/question/24703884

#SPJ4

8 0
1 year ago
Consider the case of a good with external benefits. If you plant trees in front of your house, the neighborhood is more attracti
Veronika [31]

Answer:

1. b. Tax homeowners who plant trees.

2. Win - society and consumer

   Loose - tax payers and producers.

Explanation:

1. a). If the good creates a positive externalities, then the \text{private benefits from the good are less than the social benefits} from the good.

In the context, the following would not help to correct the problem :

Taxing the homeowners who plant the trees.

If the government taxes or takes some money form the people or the house owners who plant trees in their neighborhood will discourage the people to plant the trees and would not help in correcting the problem.

2. If the government pays for the program that helps to increase the planting the trees, then,

the one who will win from this program is : society and the consumers

the one who will loose : tax payers and the producers as the government would impose more tax in order to fuel the project.

6 0
3 years ago
Other questions:
  • Sairs Info Solutions is a firm that develops software applications for other companies. After the company moves into a new offic
    8·1 answer
  • A country is attempting to measure its growth rate in technology. This is: possible to estimate using the growth accounting equa
    5·1 answer
  • Under herbert hoover, the food administration raised the price of grain so that
    6·1 answer
  • Which business model has traditionally been used by magazines
    14·2 answers
  • Lindley Corp.'s stock price at the end of last year was $33.50, and its book value per share was $25.00. What was its market/boo
    14·1 answer
  • Farah is one of a handful of permanent employees at an e-retailing company that has little to no formal structure. Depending on
    9·1 answer
  • The opportunity cost of doing or getting something is best and fully defined as:
    9·1 answer
  • Account Title Debit Credit Cash $ 6,400 Accounts receivable 24,500 Office supplies 7,700 Trucks 186,000 Accumulated depreciation
    5·1 answer
  • The mountain dew ads imply that the company is using which positioning approach as identified by professor ernest martin? use/ap
    10·1 answer
  • What are the phases of Design Thinking and discuss its importance
    10·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!