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
Lady_Fox [76]
3 years ago
8

Investors are willing to purchase stocks having high P/E ratios because:

Business
1 answer:
skelet666 [1.2K]3 years ago
4 0

Answer:

D. They expect these shares to have greater growth opportunities.

Explanation: P/E(price to earning) ratio is a ratio used in the stocks and other marketable securities to determine the price of the shares of a particular Company in relationship with the annual net income of the company per share.

A HIGHER PRICE TO EARNING RATIO INDICATES THAT THE COMPANY INVOLVED IS EFFICIENTLY UTILIZING ITS RESOURCES IN ORDER TO GENERATE PROFIT,IT ALSO SHOWS THAT THEIR IS HIGH DEMAND FOR THE COMPANY'S SHARES BECAUSE INVESTORS TRUST IN THE COMPANY'S ABILITY TO GROW AND MAKE PROFIT.

You might be interested in
Some economists argue that competitive price-searcher markets are inefficient because
inna [77]

Answer:

A competitive price-searcher market is a market where there are low entry or exit barriers, and the suppliers can determine the price of their products. Some economists believe that this type of market is inefficient because the suppliers are not able to sell enough output in order to minimize their average costs. Since the demand is very elastic in price searcher markets, any price change will cause a drastic change in the quantity demanded.

Price searcher markets share a lot of similarities with perfect competition markets, the main difference is that suppliers and consumers are not price takers. This means that any supplier can change their sales output by changing their price, which leads to greater competition.

8 0
3 years ago
"Consider the following data: Cost of goods sold $70 Direct labor $20 Direct materials used $15 Cost of goods manufactured $80 W
vovikov84 [41]

Answer:

Schedule of cost of goods manufactured & Sold

Particulars                                   Amount

Direct materials used              $15

Direct labor                                 $20

Factory overhead Applied         <u>$30</u>

(150% of DL Cost)

Total manufacturing costs          $65

Add: Beginning WIP                    <u>$25</u>

Total cost of work in process     $90

Less: Ending WIP                         <u>$10</u>

Cost of goods manufactured    <u>$80</u>

Particulars                                                  Amount

Cost of goods manufactured                       $80

Add: Beginning finished goods inventory   <u>$5</u>

Cost of goods available for sale                 $85

Less: Ending finished goods inventory        <u>$15</u>

Cost of goods sold                                        <u>$70</u>

<u />

3 0
3 years ago
What are the pros and con's for the arrive alive campaign?
Elena-2011 [213]
The Arrive Alive campaign was launched to prevent road accidents or at least lessen the instances of accidents due to drunk driving and reckless driving.

The advantages of this campaign are:

1. It promotes awareness among drivers to drive safely. 
2. It educates drivers on the rules and safe acts when on the road. 

The disadvantages of this campaign are:

1. It does not completely eliminate the risk of accidents due to drunk and reckless driving. It merely 'educates' the drivers about safe acts. 
2. It still allows the drivers to drink and drive but at 'allowable alcohol level' which does not help at all.

In the end, the Arrive Alive campaign failed. 
3 0
3 years ago
Read 2 more answers
Functions of Financial Markets. Look back at Section 2.3 and then answer the following questions: (LO2-3) a. The price of Yum! B
Aleonysh [2.5K]

Answer:

It seems that someinformation is missing, nevertheless, it is possible to calculate the market value of the firm if you have the total number of shares.

Explanation:

In this case, if the question says that the "outstanding shares" haven't changed, it means that the total number of shares neither, therefore it is possible to get the market value by multiplying $180 (the stock price for 1 share) per the total number of shares

5 0
3 years ago
Kate enjoys horseback riding and has been wanting a new show saddle for her
Elina [12.6K]
He is very happy his daughter can reach her goal but he wants to make sure she is definitely sure on what she wants to spend the money on
7 0
3 years ago
Read 2 more answers
Other questions:
  • Jamarcus's employer pays 80 percent of his medical insurance. If the insurance costs Jamarcus $20 a week, how much is his employ
    6·1 answer
  • A TAX ON PERFUME IS AN EXAMPLE OF AN. A. INCOME TAX. B. PROPERTY TAX. C.EXCISE TAX. D.STOCK TRANSFER TAX.
    7·1 answer
  • Brian vargo, an auto repair mechanic who remains unemployed because he refuses to work for less than $1,000 an hour, is:
    9·1 answer
  • Limitations of fiscal policy as a stabilization tool
    12·2 answers
  • When external benefits are present in a market?
    6·1 answer
  • When bic introduced disposable​ razors, the product and market met several criteria for using​ ________ pricing. the market was
    7·1 answer
  • 5 steps in developing a research instrument
    14·2 answers
  • Anderson's Furniture Outlet has an unlevered cost of capital of 8%, a tax rate of 35%, and expected earnings before interest and
    12·1 answer
  • Rhone-Metro Industries manufacturers equipment that is sold or leased.
    9·1 answer
  • Miami Solar manufactures solar panels for industrial use. The company budgets production of 4,800 units (solar panels) in July a
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!