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
Igoryamba
3 years ago
7

12. A company has an EPS of $2.00, a book value per share of $20, and a market/book ratio of 1.2x. what is its P/E ratio

Business
1 answer:
Tcecarenko [31]3 years ago
5 0

Answer:

P/E Ratio = 12x or 12 times

Explanation:

We know that the P/E ratio is calculated by dividing the price per share by the earnings per share or EPS.

P/E = Price per share / Earnings per share

We already have EPS. We need to calculate the price per share.

It is given that book value per share is $20 and the market to book ratio is 1.2x or 1.2 times. Using the formula for market to book ratio, we calculate the market price per share to be,

M/B = Market price per share / Book value per share

1.2 = Market price per share / 20

20 * 1.2 = Market price per share

Market price per share = $24

So, P/E ratio = 24 / 2

P/E Ratio = 12x or 12 times

You might be interested in
Patrick and Amanda are team leaders in a small organization. Patrick does not supervise his team very closely, is always asking
Dominik [7]

Answer:

person-oriented; task- oriented

Explanation:

Patrick focusing on relationships, also mindful of what his team members think, concerned with and respects other people's ideas and feelings shows he is a person-oriented leader.

On the other hand, Amanda focusing on task accomplishment; directing work activities towards goals and ensuring all her team members are up and doing shows she is a task-oriented leader.

7 0
3 years ago
You are bullish on Telecom stock. The current market price is $250 per share, and you have $20,000 of your own to invest. You bo
sergiy2304 [10]

Answer:

The rate of return on the investment if the price fall by 7% next year is -22% which is shown below.

The price of Telecom would have to fall by $71.43($250-$178.57), before a margin call could be placed.

Lastly,if the price fall immediately,the margin price would $178.57 as shown below

Explanation:

Total shares bought=$40000/$250=160 shares

Interest on amount borrowed=8%*$20000=$1600

When the price falls by 7% the new price =$250(1-0.07)=$232.50

Hence rate of return=(New price*number of shares-Interest-total investment)/initial investor's funds

=($232.50*160-$40000-$1600)/$20000=-22%

Initial margin=investor's money/total investment=$20000/$40000=50%

maintenance  margin=30%

Margin call price=Current price x (1- initial margin)/ (1- maintenance margin)

                           =$250*(1-0.5)/(1-0.3)

                           =$178.57

8 0
3 years ago
When​ materials, information, and services gain value as they move from the​ raw-materials supplier to the end​ customer, they a
Gennadij [26K]

Answer:

When​ materials, information, and services gain value as they move from the​ raw-materials supplier to the end​ customer, they are said to be moving through​ ________.

A.  the supply chain

B.  a​ value-added analysis

C.  business process re-engineering

D.  Total Quality Management​ (TQM)

E.  ​just-in-time production

Answer: A

Explanation:

A supply chain is a system between an organization and its providers to create and appropriate a particular item to the last purchaser. This system incorporates various exercises, individuals, elements, data, and assets. The supply chain additionally speaks to the means it takes to get the item or administration from its unique state to the client. Organizations create supply chains so they can diminish their expenses and stay serious in the business scene. Supply chain the board is a pivotal procedure on the grounds that an enhanced supply chain brings about lower costs and a quicker creation cycle. A supply chain includes a progression of steps required to get an item or administration to the client. The means incorporate moving and changing crude materials into completed items, shipping those items, and conveying them to the end-client. The substances associated with the supply chain incorporate makers, merchants, stockrooms, transportation organizations, appropriation focuses, and retailers.

8 0
3 years ago
Corporations have a distince advantage over other forms of business organization in the area of taxation. True False
seraphim [82]

Answer:false

Explanation:

5 0
3 years ago
Jamal was recently hired as a sales representative for a pharmaceutical company. He notices that all the other sales reps "pad"
il63 [147K]

Answer: Conformity

Explanation: Ethics trap refers to the situation in which an individual finds difficult to assess what is morally correct for him or her and what is not.

  Conformity refers to the ability of an individual to match the customs and beliefs of a group to mingle with that particular group.

In the given case, Jamal has been working in the company where all the members have been cheating on their accounts except for him. This urges Jamal to do the same for being a part of group.

Hence we can conclude that the correct option is C.

7 0
3 years ago
Other questions:
  • At the end of 2016, Sunland Company has accounts receivable of $653,700 and an allowance for doubtful accounts of $24,200.1.On J
    10·1 answer
  • Lee saves most of his money from his paycheck; he forgoes restaurant meals, new clothes, and a new car, and he lives in a small
    10·1 answer
  • The fact that there is a criminal investigation pending against Johnson and Johnson suggests that regulators feel that the compa
    6·1 answer
  • Emphasis on product, sales-volume-oriented, needs of seller Customer wants, profit-oriented, future growth Sales-volume-oriented
    15·1 answer
  • Jeff and Bill’s business is well received. However, they must quickly make a major change or the business will fail.
    5·1 answer
  • Do you think it makes sense for a transnational organization to have more than one headquarters? What might be some advantages a
    14·1 answer
  • Next year Baldwin plans to include an additional performance bonus of 0.25% in its compensation plan. This incentive will be pro
    6·1 answer
  • A PR firm is looking to hire a new team member. It is looking for someone who knows about podcasting, and has search engine opti
    15·1 answer
  • Assume that output was 1,000 units in January and 3,500 units in February, utility cost is a mixed cost, and the fixed cost of u
    9·1 answer
  • Jim has an annual income of $180,000. Jim is looking to buy a house with monthly property taxes of $140 and monthly homeowners i
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!