Answer:
1. Which Statement is true:
B. low p/e ratio could mean that the company has a great deal of uncertainty in its future earnings.
2. Qualitative analysis:
According to your understanding, a company with less competition is considered to be (more or less) risky than companies with a wide multiple competitors.
Explanation:
Company A's Price/Earnings (P/E) ratio is calculated as the market price of its shares divided by the earnings per share. It shows the value investors have over a stock. With a high P/E ratio, the company's stock could be over-valued, or investors are expecting high growth rates in the future. This is unlike a low P/E ratio that shows that the stock is undervalued or that investors are not expecting high growth rates in the future because of uncertainty.
Without competition, Company A is riskier than Company B which operates efficiently and competitively. There is that competitive edge that competitive companies possess. Monopolies do not enjoy that advantage. It is, therefore, riskier to have no competition.
Answer:
B) a monopolist's demand curve is the same as the market demand curve
Explanation:
The demand curve is downward sloping for both monopolies and competitive markets. Rational consumers will always buy larger quantities of products or services when their prices are lower, and inversely will buy less when the price if higher. This applies to all types of markets except monopsonies (a lot of suppliers and only one consumer).
Assigning indirect costs to specific jobs is completed by D. applying indirect costs to work in process.
<h3>What are indirect costs?</h3>
Indirect costs are costs that are not directly traceable to cost objects (e.g. a job, product, or service unit).
Indirect costs are overheads incurred as a result of a business activity but without direct impact. For example, utilities, office supplies, etc. are all indirect costs.
Thus, assigning indirect costs to specific jobs is completed by D. applying indirect costs to work in process.
Learn more about indirect costs at brainly.com/question/24762880
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Answer:
Net income of the company accounted for $400,000
Explanation:
Net income is the income or the amount of residual income from the earnings after deducting all the expense or cost from the sales.
The net income or loss of the company accounted for is computed as:
Net Income or Loss = Net Income - Research and Development cost
where
Net Income amounts to $3,400,000
Research and Development cost amounts to $3,000,000
So, putting the values above:
Net Income or loss = $3,400,000 - $3,000,000
Net Income = $400,000
<span>To calculate the average collection period: the average accounts receivable balance divided by average credit sales per day.
With $1,000,000 per year, that is $2739.73 per day.
The average accounts receivable is ($80,000 + $60,000) / 2 = $70,000
$70,000 / $2,739.73 = 25.6 days</span>
