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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

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A $50 par value convertible preferred stock is convertible into 5 shares (exercise price of $10). The preferred is selling for $
m_a_m_a [10]

Answer:

33.3%

Explanation:

Cost of one common stock =$12

Cost of 5 common stock = $60

Price of preferred stock = $75, which is more than $60

Hence, it would not make sense to convert the preferred stock shared into common stock as of now.

Now, if P is $20, then price of 5 stocks:

= 5 × 20

= $100

Hence, the Preferred stock price must increase to at least $100 otherwise there will be arbitrage opportunity.

Increase in price:

= price of 5 stocks - Price of preferred stock

= $100 - $75

= $25

% increase = (Increase in price ÷ Price of preferred stock) × 100

                  = (25 ÷ 75) × 100

                  = 33.3%

7 0
3 years ago
Retail Operations, Inc., a U.S. firm, obtains a judgment in a U.S. court against Shinobu, Ltd., a Japanese business. Whether the
maw [93]

Whether the court's judgment will be enforced by a court in Japan depends on the Japanese court's application of the principle of comity .

Option d

<u>Explanation: </u>

The constitutional reciprocity, the idea that some courtesies must apply to others or to other jurisdictions in the same country, is unique to the committee of law. The legitimacy and efficacy of their administrative, legislative and judicial decisions is known in particular.

The International Committee doctrine was described in different ways "as a principle of choice of law."

Lord Mansfield, an English solicitor and jurist, introduced the concept of a committee into English legislation. Mansfield considered the application of the committee to be taxable, with courts using foreign law "except to the extent that it was incompatible with public policy principles.

8 0
3 years ago
6. Which of the following could cause a change in the demand curve?
Nikitich [7]

Answer:

I think that there will be change in the population consuming the good because the goods are sold according to population who consumes it.The goods are sold according to the people .If there will be a lot of population consuming the good then the business can grow rapidly . But if there will be less population then people cant sold much goods.

7 0
2 years ago
Which of the following is true about goods and services?
Angelina_Jolie [31]
U need to provide the options we can pick from please
3 0
1 year ago
Which of the following is not true about the national income identity given by the equation: S +(T - G) = 1 + CA?
kati45 [8]

Answer:

None of the options are False.

Explanation:

CA means Current Account Balance

T means Taxes

G means Government Spending

S equals National Savings and

I equals Investment

Cheers!

4 0
3 years ago
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