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Igoryamba
4 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]4 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

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Joe Jones is aware of wrongdoing and unethical behavior within the manufacturing company where he works. Before Jones blows the
irina1246 [14]

Answer:

D. Will the Jury award be worth it?

Explanation:

Jones asking himself if whistle blowing is the only way to stop unethical behavior and wrong doing before making decision whether or not to whistleblow is important, as if there are alternative measures to be taken that would mitigate those actions, it might be better to take those alternatives.

Same thing with whether he has documentary evidence to back up his accusatory statements and the reason for whistleblowing.

But the one thing that shouldn't have bearing on his decision is if the Jury award would be worth it. Whether or not there's an award for whistleblowing shouldn't be the determinant or driving factor that decides whether or not he should whistleblow. Its unethical to consider the monetary aspect or award gotten from whistleblowing.

7 0
3 years ago
Which model can be used to analyze the direct and indirect costs to help firms determine the actual cost of specific technology
balu736 [363]

Answer:

Option "A" is the correct answer to the following statement.

Explanation:

Ownership costs are the actual cost of a resource added with operating costs. Estimating the ownership costs provide wide view our resources and their value over the time.

in this situation ,Ownership costs reflect a systematic analysis of technology or other expenses across business borders in duration.

6 0
4 years ago
A store has 5 years remaining on its lease in a mall. Rent is $2,000 per month, 60 payments remain, and the next payment is due
liubo4ka [24]

Solution:

Sum      Present value of 60 payments

             Rent                                              2000

            Periods                                           60

            Rate                                                 12%

        Present value of 60 payments    $94,405 (Excel = PV( 1% , 60 , 2000))

       Future value of these payments at t=9

       Future value                                   $1,03,249.99(Excel=FV(1%,9,94,405)

       Periods                                              51

        Rate                                                 12%

8 0
3 years ago
When a bill is paid using the Pay Bills window, QuickBooks records a journal entry that:________. A) Debits Accounts Receivable,
Nady [450]

Answer:

C)

Explanation:

When a bill is paid using the Pay Bills window, QuickBooks records a journal entry that Credits Checking account, Debits Accounts Payable. Meaning that it records a withdrawal (Credit) from your own checking account that was used to pay the bill, while simultaneously records a deposit (Debit) on the account that was just paid through the bill.

8 0
3 years ago
Every decision involves trade-offs because
snow_tiger [21]

Answer:

B everyone's resources are limited

Explanation:

A trade-off will involve selecting one option from a variety of choices. In a trade-off, one has to forfeit one alternative to enjoy the other. A trade-off is the same as the opportunity cost. The cost of trade-off is expressed as the foregone benefit from the next best alternative.

A trade-off exists because people have to choose the best way to use their limited resources to satisfy unending needs. The few available resources, including time and money, cannot satisfy individuals' and households' needs and wants. People have to prioritize their needs and allocate resources accordingly. Both individuals and firms will often decide to cater to their most pressing needs first. By making those decisions, a  trade-off is created.

8 0
3 years ago
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