Answer:
D. They expect these shares to have greater growth opportunities.
Explanation: P/E(price to earning) ratio is a ratio used in the stocks and other marketable securities to determine the price of the shares of a particular Company in relationship with the annual net income of the company per share.
A HIGHER PRICE TO EARNING RATIO INDICATES THAT THE COMPANY INVOLVED IS EFFICIENTLY UTILIZING ITS RESOURCES IN ORDER TO GENERATE PROFIT,IT ALSO SHOWS THAT THEIR IS HIGH DEMAND FOR THE COMPANY'S SHARES BECAUSE INVESTORS TRUST IN THE COMPANY'S ABILITY TO GROW AND MAKE PROFIT.
C, The identification of a problem for investigation
If the critical value is the only thing of interest, then this question is quite easy. Referencing a z table, you look up the percentage of interest: in this case, we must be 97.5% certain in order to accept the null hypothesis (significance level =2.5%. The number that corresponds to .9750 on the z table is 1.96. This is our critical value.
Answer
The answer and procedures of the exercise are attached in the following archives.
Explanation
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
When there's a service rendered, the Company will not debit its service revenue, instead Account Receivable if on account or Cash if paid in cash is debited. Journal entry to record the transaction is as follows:
If on Account:
Debit: Account Receivable $700.00
Credit: Sales Revenue $700.00
<span>To record revenue for the service rendered
</span>
If Paid in Cash:
Debit: Cash $700.00
Credit: Sales Revenue $700.00
To record revenue for the service rendered
