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
Although entrepreneurs expect to succeed, they must be realistic and recognize that they are taking a(n) because many small busi
Harlamova29_29 [7]

Entrepreneurs take risks because they may lose time and money despite their high expectation of success.

<h3>Who is an entrepreneur?</h3>

An entrepreneur is an individual who starts a business.  Entrepreneurs are known for their passion to achieve business success.  They enjoy the gains from their success and may risk losing their time and money in the process.

Thus, as the entrepreneurs expect to succeed, they must be realistic, recognizing that they are taking a risk.

Learn more about entrepreneurs at brainly.com/question/353543

8 0
3 years ago
describe what ETL (Extraction, Transformation, and Load) stands for. Solomon (2015) classified ETL technologies into four catego
Anna71 [15]

Answer:

Scheduled data integration, or ETL, is an important aspect of warehousing because it consolidates data from multiple sources and transforms it into a useful format

Explanation:

ETL are three separate but crucial functions combined into a single programming tool that helps in preparing data and in the management of databases. Extract, Transform, Load each denotes a process in the movement of data from its source to a data storage system, often referred to as a data warehouse

3 0
3 years ago
The fiscal year-end 2016 financial statements for Walt Disney Co. report revenues of $55,632 million, net operating profit after
fredd [130]

Answer:

Option (C) is correct.

Explanation:

Given that,

Revenues = $55,632 million

Net operating profit after tax = $9,954 million

Net operating assets at fiscal year-end 2016 = $58,603 million

Net operating assets at fiscal year-end 2015 = $59,079 million

Net operating profit margin is determined by dividing the net operating profit after tax by the total amount of revenues during a fiscal year.

Net operating profit margin:

= (Net operating profit after tax ÷ Revenues) × 100

= ($9,954 ÷ $55,632) × 100

= 0.1789 × 100

= 17.89%

7 0
3 years ago
Identify at least four different types of financial statement users and discuss why each would use the financial statements.
GarryVolchara [31]

Answer:

Government authorities :

They will use the financing statement to ensure the fairness of the business and to receive proper amount of tax.

Investors :

Current or potential investors would check financial statements to ensure they will suitable returns after investment.

Creditors :

They will check financial statements to make sure they get their due money back.

Employees :

The employees will ask for bonus if the company performance in statements is good,

8 0
3 years ago
Which system of job evaluation is being used when cards that list the duties and responsibilities of the job are arranged by rat
trasher [3.6K]
That would a be system of job ranking
8 0
3 years ago
Other questions:
  • The Mayo Clinic in Minnesota is known for top-quality medical care. For decades, even presidents and dictators from around the w
    15·1 answer
  • To print the Adjusted Trial Balance, select: Multiple Choice Company Center &gt; Accountant &amp; Taxes Company Center &gt; Comp
    13·1 answer
  • A company's Inventory balance at the end of the year was $188,000 and $200,000 at the beginning of the year. Its Accounts Payabl
    11·1 answer
  • Bee Company is a honey wholesaler. An income statement and other data for the second quarter of the year are given below: Bee Co
    7·1 answer
  • On January 1, 20X1, Picture Company acquired 70 percent ownership of Seven Corporation at underlying book value. The fair value
    6·1 answer
  • Scissor Corporation holds assets with a fair value of $150,000 and a book value of $125,000 and liabilities with a book value an
    10·1 answer
  • PLEASE HELP ME ASAP PLEASE!!!!
    11·1 answer
  • A deposit would appear as a debit on your bank statement. <br><br> True or False
    10·2 answers
  • Describe an example of your leadership experience in which you have positively influenced others, helped resolve disputes or con
    6·1 answer
  • When collective decision making is utilized to resolve economic questions regarding the allocation of resources,
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!