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inna [77]
3 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]3 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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3 years ago
In the old Merck compensation system, if the salary line formula is: control point = $1544 + $4.72*Hay point. How much will a mi
Alekssandra [29.7K]

Answer:

<u>A mid-level manager will get $5251.2 salary.</u>

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3 years ago
. Suppose that a car dealer has a local monopoly selling Volvos. It pays w to Volvo for each car that it sells, and charges each
kicyunya [14]

Answer:

The dealer will sell 15 Volvos

Explanation:

Consider the following formulas to calculate the Q of which optimize the exercise.

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6 0
3 years ago
Hamlet, a calendar year taxpayer, owns 1,000 shares of Vanity Corporation common stock, which he purchased 2 years ago for $4,00
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Answer:

Hamlet

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