Answer:
a. Increase
Explanation:
The price earnings ratio is calculated by dividing the market value per share by the earning per share. This means that the price of the share is in the numerator and the earnings per share is in the denominator. If the denominator increases the ratio will decrease and if the numerator increases the ratio will increase. In this case the price of the stock which is the numerator increases from 15 to 18 whereas the earnings which is the denominator remains the same, this means that the price earnings ratio will increase. We can see this example numerically
We know the price of the stock was $15, lets assume the earnings were $1. So before the price change the earnings per share ratio would be 15/1= 15.
When price increases to $18 and earnings remain the same the new price earnings ratio will be 18/1=18. This proves that when earnings are constant and price per share increases the price earning ratio increases.
Answer:
The correct answer to the following question will be Option C.
Explanation:
- The buyers, as well as sellers, must negotiate an understanding as to who is capable of paying certain transport costs and also who, whenever the item is delivered, assumes the default risk throughout transportation.
- A seller reports compensation whenever the purchaser has the transition of titles as well as ownership uncertainties.
The other three options are not related to a certain scenario. So that option C is the right answer.
Normally it's C, good day
An activity-based costing system is uses numerous overhead cost pools. Thus, the last option is correct.
<h3>What is Activity based costing?</h3>
Activity based costing is the technique which is used to calculate the cost based on the activity. It is the prediction of the cost, in which overhead cost and indirect cost are assigned.
This approach allocates fixed and variable expenses, as well as overhead and indirect costs, to relevant goods and services, allowing a business to determine the true cost of a product, service, or activity.
Therefore, it can be concluded that the last option is correct.
Learn more about Activity based costing here:
brainly.com/question/15862944
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Answer:
e) Increase the required rate of return used to evaluate the project to reflect the higher risk of the project
Explanation:
As per the basic concept of investment, "higher the risk, higher the return".
Thus, an investor assumes a higher risk only in the scenario wherein the expected return would be commensurate with such risk. Investor would only invest in a risky asset when the return derived can compensate him for the excess risk assumed.
Required rate of return is an investors expectation of return from a project also referred to as the cost of capital.
So for the purpose of evaluating the project, the investor should use a higher required rate of return to signify higher risk which would reveal the true viability of the project.
