1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
strojnjashka [21]
3 years ago
14

Botox Facial Care had earnings after taxes of $340,000 in 20X1 with 200,000 shares of stock outstanding. The stock price was $74

.80. In 20X2, earnings after taxes increased to $378,000 with the same 200,000 shares outstanding. The stock price was $83.00.
a. Compute earnings per share and the P/E ratio for 20X1. (The P/E ratio equals the stock price divided by earnings per share.) (Do not round intermediate calculations. Round your final answers to 2 decimal places.)




b. Compute earnings per share and the P/E ratio for 20X2. (Do not round intermediate calculations. Round your final answers to 2 decimal places.)




c. Why did the P/E ratio change? (Do not round intemediate calculations. Input your answers as percents rounded to 2 decimal places.)
Business
1 answer:
scoundrel [369]3 years ago
3 0

Answer:

$1.7; 44 times

Explanation:

a) EPS(20X1):

= Earnings after taxes / Number of shares

= $340,000 / 200,000

= $1.7

P/E ratio(20X1):

= Price / EPS

= $74.80 / $1.7

= 44 times

EPS(20X2):

= Earnings after taxes / Number of shares

= $378,000 / 200,000

= $1.89

P/E ratio(20X2):

= Price / EPS

= $83.00 / $1.89

= 43.92 times

You might be interested in
To have the potential to become sources of competitive advantage, resources and capabilities must be non-substitutable, valuable
dexar [7]

Answer: rare; costly to imitate

Explanation:

To have the potential to become sources of competitive advantage, resources and capabilities must be non-substitutable, valuable, rare and costly to imitate.

Competitive advantage simply has to do with the factors or the resources that are available to a particular company that allows the company to produce products that are cheaper and.bettee than its counterparts. This helps the company make more sale and more revenue.

The resources must not be one that can be easily copied by others. It must also be valuable and rare.

7 0
3 years ago
Read 2 more answers
A corporation issues for cash $9,000,000 of 8%, 30-year bonds, interest payable semiannually. The amount received for the bonds
Sloan [31]

Answer:

B

Explanation:

- The Semiannually total interest  Payable will be calculate as

30*2 = 60 Semiannual Times Payments

- Interest Payments

$9,000,000*8%/2=$360,000

- So the Total payments will be paid semiannually 60 times $360,000 with the principle amount $9,000,000

6 0
3 years ago
An employer hiring in a competitve labor market should hire additional labor as lnog as?
dybincka [34]

An employer hiring in a competitive labor market should hire additional labor as long as the marginal revenue product (MRP) exceeds the wage rate.

Marginal revenue product (MRP), also called the marginal fee product, is the marginal sales created due to an addition of 1 unit of resource. The marginal sales product is calculated via multiplying the marginal physical product (MPP) of the useful resource through the marginal sales (MR) generated.

How do you calculate marginal revenue product made from labor?

The marginal revenue product fabricated from a worker is equal to the fabricated from the marginal fabricated from exertions (MPL) and the marginal revenue (MR) of output, given with the aid of MR×MPL = MRPL.

Why is marginal revenue product vital?

Marginal revenue product (MRP) explains the additional revenue generated by means of adding an additional unit of manufacturing resource. it's miles an important idea for determining the demand for inputs of production and analyzing the most advantageous amount of a useful resource.

Learn more about marginal revenue product  here:-brainly.com/question/13444663

#SPJ4

4 0
2 years ago
Paul Corporation reported net income of $260,000 during the current calendar year. The company had 10,000 common shares outstand
uysha [10]

Answer:

the company’s basic EPS is $37.14

Explanation:

Basic Earnings per share = Earnings attributable to holders of common stock ÷ Weighted Average Number of Common Stocks

<u>Step 1 : Calculation of Earnings attributable to holders of common stock</u>

This is given. It is the Net Income during the current year of $260,000

<u>Step 2 : Calculation of Weighted Average Number of Common Stocks</u>

Outstanding Stocks at the beginning of the year                 10,000

Less Sold Stocks - On Weight Basis (6/12 × 6,000)               3,000

Weighted Average Number of Common Stocks                    7,000

Therefore,

Basic Earnings per share = $260,000 ÷ 7,000

                                           = $37.14

8 0
3 years ago
Benchmarking involvesA. comparing how different companies perform various value chain activities and then making cross-company c
Vinvika [58]

Answer:

Letter A is correct. <u>Comparing how different companies perform various value chain activities and then making cross-company comparisons of the costs of these activities.</u>

Explanation:

The most suitable alternative to this question is letter A, because the definition Benchmarking can be defined <u>as the process and search for in-depth knowledge about your competitors and the way they carry out their activities. </u>

It consists of investigating competitors in order to compare operations, products and services between a company and its main competitors. Through the research of competitors it is possible to better understand the market and adapt the best practices to be successful, in addition to achieving continuous improvement of processes, in addition to reducing errors and costs through the analysis and knowledge of the actions of competing companies.

3 0
3 years ago
Other questions:
  • PLEASE HELP ME!
    5·2 answers
  • All of these are ways a society can improve its productivity EXCEPT
    13·2 answers
  • The burn down chart for a team showed a peculiar trend. It started dropping rapidly at the beginning of the Sprint and then seem
    5·1 answer
  • Peggy sells pistachios and almonds at the farmer’s market. She currently prices pistachios at $7 per bag and almonds at $4 per b
    12·1 answer
  • Garden tools inc. uses the internet to market their products and gain competitive advantage. garden tools is employing a(n) ____
    15·1 answer
  • Which of the following is NOT true? A. The financial statement which reports information helpful in calculating the current rati
    5·1 answer
  • Suppose that a developer is choosing tenants for a shopping center. There are four possible tenants: a DEPARTMENT STORE, a TOY S
    15·1 answer
  • Justin builds fences for a living. Justin's out-of-pocket expenses (for wood, paint, etc.) plus the value that he places on his
    10·1 answer
  • Consider the following transactions by a corporation: On July 5, billed a customer for $6700 for services performed on that day.
    10·1 answer
  • What do economists call the situation where a hired manager does not have the same interests as the owners of the business?
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!