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Ksju [112]
4 years ago
15

Zale is a new investor. He studies the financial pages and finds a company whose stock market EPS has risen while its P/E ratio

has declined. What should Zale do?                                                                                                                                                           a.do not invest in the stock because the price is not keeping up with earnings
b.invest in the stock because the price has increased drastically
c.invest in the stock because earnings are rising while the stock price is not rising
d.do not invest in the stock because earnings are decreasing
Social Studies
1 answer:
lana [24]4 years ago
4 0

Answer:

<em>The correct option is B) invest in the stock because the price has increased drastically.</em>

Explanation:

Earning per share (EPS) is calculated by dividing net profit over number of outstanding shares. Where as the P/E ratio is calculated by dividing share price over earnings/profits. Decrease in P/E ratio indicates that  company's earnings have improved over its price. Further increase in EPS also suggests rise in earnings. Both formula indicates rise  in earnings which indicates that company is in profits and can easily expect better dividend yield and future growth. So it is high time to invest in the company.

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Answer:

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Explanation:

John Marshall served as the Chief Justice of United States from  1801 to 1835. He was known for his strong affiliation with the Federalist party, a party which dedicated to increase the power of the Federal government. They believed the earlier draft of constitution need a lot of change to ensure the federal government has authority over the states.

As a chief justice, every single of his decisions he made consistently aligned with the final goals of the federalist party. Gibbons Vs  Ogden Strengthen federal government's influence on national trade, McCulloh vs Maryland strengthen the Federal's influence on States' budget, and Marbury vs Madison strengthen the federal laws supremacy over the states legislation.

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