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iren2701 [21]
3 years ago
12

Financial information for Forever 18 includes the following selected data: ($ in millions except share data) 2021 2020 Net incom

e $ 182 $ 164 Dividends on preferred stock $ 34 $ 25 Average shares outstanding (in millions) 200 200 Stock price $ 11.27 $ 10.22 2-a. Calculate the price-earnings ratio in 2020 and 2021.
Business
1 answer:
soldi70 [24.7K]3 years ago
6 0

Answer:

P/E ratio in 2020 is 14.7

P/E ratio in 2021 is 15.23

Explanation:

Price-earning (P/E) ratio = Price per Share/ Earning per Share

The earning after dividends on preferred stock in 2021 is $148 = Net income $182 - Dividends on preferred stock $34

Then earning per share in 2021 is $0.74 = $148/ 200  

P/E ratio in 2021 is 15.23 = $11.27/$0.74

Repeat calculation for 2020, then:

The earning after dividends on preferred stock in 2020 is $139 = Net income $164 - Dividends on preferred stock $25

Then earning per share in 2021 is $0.695 = $139/ 200  

P/E ratio in 2020 is 14.7 = $10.22/$0.695

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SOVA2 [1]

Answer:

True

Explanation:

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8 0
3 years ago
Companies facing the challenge of setting prices for the first itme can choose between two board strategies; marketing-penetrati
Alika [10]

The correct question should be:

Companies facing the challenge of setting prices for the first time can choose between two board strategies; marketing-penetration pricing and _______ pricing.

Answer: Market Skimming pricing.

Explanation:

A company with a product new to the market can either choose to use the market penetration pricing or the market skimming pricing.

The market penetration pricing works best in a market with a lot of competition. The penetration pricing is a kind of pricing a company uses where the price of it's Products are set to be very low to attract price-sensitive consumers and still make profit.

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5 0
3 years ago
Ann Chovies, owner of the Perfect Pasta Pizza Parlor, uses 20 pounds of pepperoni each day in preparing pizzas. Order costs for
coldgirl [10]

Answer:

Option (A) is correct.

Explanation:

Given that,

Order costs for pepperoni = $10.00 per order

Carrying costs = 4 cents per pound per day

Lead time for each order = 3 days

Pepperoni itself costs = $3.00 per pound

Total Order = 80 pounds of pepperoni

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3 0
3 years ago
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Answer: REPLICATION

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5 0
3 years ago
Carpark Services began operations in 20X1 and maintains long-term investments in available-for-sale debt securities. The year-en
Rzqust [24]

Answer:

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