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inna [77]
2 years ago
6

A firm is expected to generate earnings of $2.22 per share next year. The mean ratio of share price to expected earnings of comp

etitors in the same industry is 15. Based on this information, the valuation of the firm’s shares based on the price-earnings (PE) method is $_______.
Business
1 answer:
Alenkinab [10]2 years ago
4 0

Answer:

The valuation of the firm’s shares based on the price-earnings (PE) method is $33.3

Explanation:

The price-to -earning ratio is calculated by dividing the market value of price per share by the firm's earning per share.

Given that; earnings per share generated are $2.22

The mean ratio of share price to expected earnings =15

P/E =Share price/earning per share

15=share price/2.22

share price = $2.22*15 =$33.3

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In one state, a mortgagee holds legal title to real property offered as collateral for a loan, and the mortgagor retains the rig
True [87]

Answer:

Lein Theory.

Explanation:

Lien theory refers to the theory in which the buyer stops the property deed at the time of the mortgage. Also the buyer promised to pay all the payments so that the mortgage could become a lien on a property but at the same time the  title would remain with the buyer but if all the payments are paid so the lien could be removed

Therefore in the given situation, it represents the lien theory

7 0
3 years ago
2. Complete the table below by identifying the costs of retirement, including living expenses (the sum of rent/mortgage, utiliti
earnstyle [38]

Answer:

Estimated monthly total is: 24,974

Explanation:

Living expenses- $5,378

Healthcare expenses-$9,596

long-term care expenses- $10,000

Estimated monthly total is 24,974

5 0
3 years ago
Whitman and Greene are partners in a real estate venture. At January 1, 2020, their respective capital balances were $200,000 an
kykrilka [37]
Which describes the cross section of the rectangular prism that passes through vertices A, B, C, and D?

(A rectangular prism with measurements 3 centimeters, 10 centimeters, 6 centimeters.)

a rectangle with two 10-cm sides and two 6-cm sides
a rectangle with two 10-cm sides and two sides that are longer than 6 cm
a nonrectangular parallelogram with two 10-cm sides and two 6-cm sides
a nonrectangular parallelogram with two 10-cm sides and two sides that are longer than 6 cm
5 0
3 years ago
The actual variable cost of goods sold for a product was $140 per unit, while the planned variable cost of goods sold was $136 p
kozerog [31]

Answer:

$326,400 is the variable cost quantity factor while $56,000 is the unit cost factor

Explanation:

The variable cost quantity factor is a measure of the difference between the planned and actual units  multiplied by planned variable cost.  

That is Variable Cost quantity factor = (planned units  - actual units sold) x        planned variable cost

                                                            = (14000-2400) - 14000) x $136

                                                            = (11600 - 14000) x $136

                                                            =  -$326,400

Unit Cost factor = $(140 - 136) x 14000 units

                          =$56,000

3 0
2 years ago
Read 2 more answers
Elite Stationary employs 20​ full-time employees and 10 trainees. Direct and indirect costs are applied on a professional​ labor
kolezko [41]

Answer:

Since cost per hour of full-time employees is $150, while cost per hour of trainees $27, clients using proportionately more​ full-time employees than trainees will​ <u>be under billed or charged for the resources or labor hour used</u>.

Explanation:

The data in the question are merged and they are first separated before answering the question as follows:

Details                                                  Budget                Actual

Indirect costs ​                                     $250,000 ​             $400,000

Annual salary of each employee ​     $200,000 ​             $250,000

Annual salary of each trainee ​             $40,000 ​               $45,000

Total professional​ labor-hours         ​40,000 dlh ​            50,000 dlh

In normal costing system, actual costs are used.

Therefore, labor hours for each category and cost per hour can be calculated as follows:

Full-time employees total labor hours = (20/30) * 50,000 = 33,333 hours

Each full-time employee annual labor hour = 33,333/20 = 1,667 hours

Cost per hour of full-time employees = $250,000/1,667 = $150 per hour

Trainee total labor hours = (10/30) * 50,000 =  16,667 hours

Each trainee annual labor hours = 16,667/10 = 1,667 hours

Cost per hour of trainees = $45,000/1,667 = $27 per hour

Since cost per hour of full-time employees is $150, while cost per hour of trainees $27, clients using proportionately more​ full-time employees than trainees will​ <u>be under billed or charged for the resources or labor hour used</u>.

5 0
2 years ago
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