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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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Murljashka [212]

The Marine Corps refer to the United States Marines Corps, a branch of the U.S. Army who is responsible for conducting expedition and amphibious operations with multiple branches of the military, which includes the Navy, Army, and the Air Force.

The answer to the question is size and capacity vs. speed and flexibility.

7 0
3 years ago
Read 2 more answers
Jose and Zola want to purchase their first home. Jose makes $23.50 an hour and works 40 hours per week. Zola makes $21.50 an hou
vovangra [49]

Answer:

$1,411.25

Explanation:

The computation of the combined gross monthly income is shown below:

The earnings of Jose = $23.50 × 40 hours = $940

And, the earnings of Zola is

= $21.50 × 40 hours + 5 hours × $21.50

= $860 + $161.25

The total earnings is

= $940 + $860 + $161.25

= $1,961.25

And, the expenses are

= $500 + $50

= $550

So the combined gross monthly income is

= $1,961.25 - $550

= $1,411.25

7 0
3 years ago
Improperly capitalizing a repair and maintenance expense item as fixed asset will result in:____.
Fudgin [204]

Improperly capitalizing a repair and maintenance expense item as a fixed asset will result in an <u>overstatement of profit in the current year and an understatement in future years</u>.

Fixed assets seek advice from long-term tangible assets which can be used inside the operations of an enterprise. They offer long-term monetary advantages, have a useful existence of a couple of yr, and are labeled as assets, plants, and equipment on the balance sheet.

Fixed assets, additionally called lengthy-lived assets or property, plant, and the system is a term utilized in accounting for assets and belongings that can't effortlessly be transformed into cash. Fixed assets are unique from the contemporary property, which includes coins or bank accounts because the latter are liquid property.

Fixed assets are capitalized. It really is due to the fact the advantage of the asset extends past the year of buy, not like different costs, which might be length expenses benefitting handiest the duration incurred. constant assets should be recorded at a price of the acquisition

Learn more about Fixed assets here brainly.com/question/20289326

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5 0
2 years ago
If the government of Balancia runs a deficit of $50 million per year in Year 1 and in Year 2 due to its recession, but then has
natima [27]

Answer:

Cyclically balanced budget

Explanation:

6 0
3 years ago
Ms. Marilynn Castillo is a marketing manager at Gordon Corp. She debates whether or not to conduct a marketing research study be
Ipatiy [6.2K]

Answer:

The correct answer is letter "B": cost-benefit assessment.

Explanation:

Cost-benefit assessment implies analyzing what the costs and benefits of engaging in business are. The approach aims to minimize losses and maximize benefits. It does not necessarily imply there are not going to be losses during the business cycle but could reduce them as much as possible.

3 0
4 years ago
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