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
Privett Company Accounts payable $33,264 Accounts receivable 67,719 Accrued liabilities 6,039 Cash 20,980 Intangible assets 39,9
xz_007 [3.2K]

The total amount of quick assets is equal to $119,232. therefore, Option B is the correct statement.

<h3>What are Quick Assets?</h3>

Quick assets encompass cash available or current assets like accounts receivable that may be transformed to cash with minimum or no discounting.

Companies have a tendency to use the short assets to cover short-time period liabilities as they arrive up, so speedy conversion into cash (excessive liquidity) is critical.

Inventories and prepaid expenses aren't quick assets due to the fact they may be hard to transform into cash, and deep discounts are sometimes needed to do so.

The amount of quick assets is equal to Accounts receivable plus Cash plus Marketable securities.

Quick assets = $67,719 + $20,980 + $30,533

Quick assets = $119,232

Hence, the total amount of quick assets is equal to $119,232. Option B is the correct statement.

learn more about quick assets:

brainly.com/question/11209470

#SPJ1

5 0
2 years ago
Explain why supply and price are positively related
pishuonlain [190]

Answer:

see below

Explanation:

A positive correlation signifies that an increase in one variable results in the other variable moving in the same direction. Because supply and price are positively correlated, a price increase will increases supply. The opposite is also true.

Suppliers are business people whose main objective is to make profits. Higher prices give higher margins. Suppliers make higher profits when prices are high. The possibility of making higher profits motivates suppliers to increase supplies to the market. On the other hand, low prices may result in losses. When prices are low, supplies will shy away from the market to avoid making losses.

6 0
3 years ago
Assume the following information:
omeli [17]

Answer:

Total product cost= $181,000

Explanation:

<u>The product cost is the sum of the direct material, direct labor, and manufacturing overhead:</u>

Direct materials $ 70,000

Direct labor $ 37,000

Variable manufacturing overhead $ 12,000

Fixed manufacturing overhead $ 25,000

Total manufacturing overhead $ 37,000

Total product cost= $181,000

7 0
3 years ago
Describe the three most downturns in the United States economy since the 1920's
velikii [3]
The Great Depression, the recession, I don't know the other one.
5 0
3 years ago
One way businesses can solve ethical dilemmas is through:
Viefleur [7K]

Answer: D

Explanation:

An ethical dilemma is a decision making problem between two possible moral imperatives, neither of which is unambiguously acceptable or preferable.

The best way to solve an ethical dilemma problem is to only recruit ethically proven potential workers during interview.

8 0
3 years ago
Other questions:
  • During the period, labor costs incurred on account amounted to $175,000, including $150,000 for production orders and $25,000 fo
    10·1 answer
  • Is a Polo shirt proper for a business job?
    6·1 answer
  • The story of how prilosec otc successfully used sponsorship of bunco gaming, in particular the bunco world championship illustra
    13·1 answer
  • Which describes a type of tax that people pay on money they earn?
    5·2 answers
  • Your car still has a marginal cost of $20,000. But, the market price has now increased to $25,000. Your incentive to supply cars
    11·2 answers
  • Recommend ways in which businesses can contribute time and effort to advance the well being of others in a business context in t
    7·1 answer
  • The idea that unions benefit people in communities by holding employers accountable for the way they treat workers is an example
    13·1 answer
  • Which of the following statements is correct? The journal entry to record bad debt expense requires a debit to bad debt expense
    7·1 answer
  • You are given the following information for Watson Power Co. Assume the company’s tax rate is 24 percent. Debt: 14,000 6.3 perce
    7·1 answer
  • The Demand Curve is a line that is
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!