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
Which of these is the most likely outcome of a financial crisis?
abruzzese [7]
More bankruptcies because if there is a crisis people are losing a lot of money and are more than likely filling for bankruptcies.
5 0
3 years ago
Read 2 more answers
Pretax accounting income for the year ended December 31, 2021, was $53 million for Truffles Company. Truffles' taxable income wa
Anuta_ua [19.1K]

Answer:

$17,820,000

Explanation:

The amount of tax due to government authorities for the current period is referred to as current portion of income tax expense. It is calculated by product of current or enacted tax rate and taxable income for the period

Taxable income for 2021 = $66million

Enacted or current tax rate for 2021 = 27%

Current portion of income tax expense for 2021 = Taxable income x current tax rate = $66 million x 27% = $17,820,000million

Hence Current portion of income tax expense = $18 million

4 0
3 years ago
Usually, most of an adult's income comes from
Zigmanuir [339]
JOBS ARE THE SOURCE OF INCOME
5 0
3 years ago
Gilberto's Performance Pizza is a small restaurant in Chicago that sells gluten-free pizzas. Gilberto's very tiny kitchen has ba
Leno4ka [110]

Answer:

However, Gilberto's decision regarding how many workers to use can vary from week to week because his workers tend to be students. Each Monday, Gilberto lets them know how many workers he needs for each day of the week. In the short run, these workers are <u>VARIABLE</u> inputs, and the ovens <u>FIXED</u> inputs.

Explanation:

In the long run, all inputs are variable. E.g. in 5 years Gilberto might build his own pizza place and he will be able to make the kitchen as large as he wants.

But in the short run, some inputs are variable because they can be changed immediately, e.g. the number of workers changes on a weekly basis. While other inputs are fixed, and cannot be changed, e.g. Gilberto has a two yer lease contract for the ovens, so he will continue to use these ovens until the lease expires (in 2 years).

The long run and short doesn't depend on time, but on the ability of being able to change the inputs consumed by a business. The long run might represent 10 years for a company that signed a 10 year lease contract.        

5 0
3 years ago
Assume there are currently five firms producing and selling fertilizer in the South American market. Also assume that the produc
Jobisdone [24]

Answer:

It is given that in an oligopolistic market, there are at first five firms. At the point when the quantity of fums diminishes to three, it implies that the all out yield will likewise decrease. It is on the grounds that, all the makers are delivering separated items. The inventory of merchandise won't increment in light of the fact that the makers would have expanded the creation before, if that was conceivable. Hence, the balance amount will fall and in view of decrease in amount, cost will increase.

Thus, equilibrium price will likely <u>increase</u> and the equilibrium quantity will likely  <u>decrease.</u>

3 0
3 years ago
Other questions:
  • Alyssa's monthly mortgage costs are lower than those of her neighbor, Steven. Steven doesn't understand how this is possible bec
    9·2 answers
  • Julie plans on taking out student loans to pursue her college education in teaching. Should Julie take out a private loan or a f
    12·1 answer
  • -8=-7(-4x+8)+8(x-3) what does x equal? and how do i get the answer?
    6·1 answer
  • If equilibrium price falls and the equilibrium quantity of the good purchased decreases, what has happened to either the supply
    13·1 answer
  • A company set up a petty cash fund with $800. The disbursements are as follows:
    9·1 answer
  • Who is credited with pioneering the principles of the scientific approach to management
    12·1 answer
  • Give the human resource and it law​
    5·1 answer
  • A group is a number of people who
    13·1 answer
  • _____________ is calculated by taking the quantity of everything that is sold and multiplying it by the sale price. Total revenu
    15·1 answer
  • In which situation would it be most appropriate to use money you have set aside in your emergency fund?
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!