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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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Which one of the following affects cash during a period?
inysia [295]

Answer: d. Payment of an accounts payable

Explanation:

The payment of an accounts payable affects cash because it means that cash was used to pay off the payable in question and therefore the cash that the company holds has now reduced.

In the Statement of Cashflows, this is accounted for under the Operating Activities of the business. A decrease in accounts payable is subtracted from the net income to show that cash has reduced.

5 0
3 years ago
Stories Company purchased equipment and these costs were incurred:Cash price $22,500Sales taxes 1,800Insurance during transit 32
Harrizon [31]

Answer:

d. $25,050.

Explanation:

The computation of the acquisition cost is shown below:

= Cash price of equipment + sales tax + Insurance during transit + Installation and testing

= $22,500 + $1,800 + $320 + $430

= $25,050

To find out the acquisition cost, we have to consider all that cost which is related to the purchase of equipment. Since, all the costs are related, so we have to take all costs which are mentioned in the question.

4 0
3 years ago
Delta Company performed $20,000 of services on account and recorded the amount due as a typical account receivable. Over time, i
Llana [10]

Answer:

D) No impact on the accounting equation.

Explanation:

  • Nothing would happen since the amount to be received would remain the same i-e $20,000, so there is no chance for increase in liabilities. Moreover, the there is no new services so that asset should be impacted.
  • What there has been done is just classifying the payment which the Delta thought that they would receive earlier, but now it is being realized that it will take long, so just to not make any mistake or confusion for future this was done.
3 0
3 years ago
Root and Vine is a gardening collective and local delivery service started by two friends. Their clientele has grown, and they w
Zanzabum

The best and most correct answer among the choices provided by your question is the second choice or letter B. They could put up a partnership which <span>might best suit their growth.

</span>
A partnership<span> is a single business where two or more people share ownership. Each </span>partner<span> contributes to all aspects of the business, including money, property, labor or skill. In return, each </span>partner<span> shares in the profits and losses of the business.</span>


I hope my answer has come to your help. Thank you for posting your question here in Brainly.
3 0
3 years ago
Read 2 more answers
Because successive units of a good produce less and less additional satisfaction, the price must fall to encourage a buyer to pu
lubasha [3.4K]

Answer:

B) diminishing marginal utility

Explanation:

The law of Diminishing marginal utility states that utility falls as consumption increases.

The law of demand states that the higher the price, the lower the quantity demanded and the lower the price, the higher the quantity demanded.

Because of diminishing marginal utility, consumption can be encouraged by reducing price.

As utility falls, consumers would be unwilling to buy more goods at the same price, therefore it would be reasonable to reduce price to encourage consumption.

6 0
3 years ago
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