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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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the ending balance of the retained earnings account appears in group of answer choices only the statement of stockholders’ equit
evablogger [386]

The ending balance of the retained earnings account appears both in the statement of stockholders’ equity and the balance sheet.

<h3>Where does retained earnings appear?</h3>

Retained earnings is the profit left after dividends have been paid. It is the profit that is not paid out to shareholders as dividends.

A balance sheet is a financial statement that reports a company's assets, liabilities and shareholders' equity at a point in time. The retained earnings appears in the equity section of the balance sheet.

The statement of stockholders’ equity records the owners equity and changes to the owners equity during a financial year.

The income statement records a company's income and expenses in a financial year. It is used for determining if a firm is operating at a profit or a loss.

To learn more about income statement, please check: brainly.com/question/9060570

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5 0
2 years ago
Bodin Company manufactures finger splints for kids who get tendonitis from playing video games. The firm had the following inven
Ilia_Sergeevich [38]

Answer:

Raw Material $191,000

Direct labor $300,000

Actual manufacturing overhead $170,000

Actual selling and administrative expenses $115,000

The company applies manufacturing overhead at the rate of 60 percent of direct-labor cost.

1.

Prime Cost = Direct Material + Direct Labor

Prime Cost = $191,000 + $300,000 = 491,000

2.

Cost of goods manufactured                                    $

Direct material                                                      $191,000

Add: Direct Labor                                                $300,000

Add: Manufacturing overhead                           <u>$170,000</u>

Manufacturing cost                                             <u>$661,000</u>

3.

Manufacturing cost                                             $661,000

Add: Work in process inventory at January 1    $235,000  

Less: Work in process inventory at January 31 <u>$251,000</u>

Cost of Goods Manufactured                             <u>$645,000</u>

4.

Cost of Goods Manufactured                             $645,000

Add: Finished Good inventory at January 1      $125,000  

Less: Finished Good inventory at January 31   <u>$117,000</u>

Cost of Goods Sold                                            <u>$653,000</u>

5.

Manufacturing overhead Account Balance

Actual overhead                = $175,000

Manufacturing overhead   = $180,000  (300,000 x 60% )

Over applied manufacturing overhead = $180,000 - $175,000

Over applied manufacturing overhead = $5,000

* Data was missing for the calculations, complete question is attached with this answer, Please find that.

3 0
3 years ago
What is meant by organ growth?​
yawa3891 [41]
An organ grew, probably I think
6 0
3 years ago
Suppose that for each one-percentage-point increase in the interest rate, the level of investment spending declines by $1 billio
elixir [45]

Answer:

We expect investment spending to increase by $ 1 billion

Explanation:

If investment decreases by $ 1 billion if a 1 % change is made then that is sensitivity of investment to change in interest rate. Thus if there is a 1 % reduction in interest rate we expect to see a $ 1 billion increase in spending if this holds true.

5 0
3 years ago
which of the following is true of a sole proprietorship? a business operated under sole proprietorship cannot be transferred. b)
son4ous [18]

The statement that is true of a sole proprietorship is that a) a business operated under a sole proprietorship cannot be transferred.

A proprietorship can legally have the handiest one, proprietor. This is due to the fact the commercial enterprise serves as a part of the enterprise proprietor's private identification and vice versa. If a proprietor wants to expand their business and take delivery of new companions and traders, they would restructure the employer and contain it.

Any individual who wants to start a commercial enterprise with less investment can choose this sort of commercial enterprise form. It is able to be started in a time span of 10-15 days. Additionally, the control within the business is solely for your arms.

The proprietorship has been described because the only enterprise form underneath which you'll be able to perform a commercial enterprise. It isn't a legal entity and definitely refers to a person who owns the commercial enterprise, individually responsible for its debt.

Learn more about proprietorship here brainly.com/question/12913114

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8 0
1 year ago
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