Ace Industries has current assets equal to $3 million. The company's current ratio is 1.5, and its quick ratio is 1.1. What is t
1 answer:
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Answer:
The boy: 8 years old
The sister: 11 years old
Explanation:
We assume that the age at present of the boy is x (years old).
As he is younger than his sister 3 years, so that his sister's present age is great than x 3 years
=> Her present age is: x + 3 (years old)
Two years ago, the boy is younger than present two years
=> The boy's age two years ago is: x - 2 (years old)
Similarly, the sister's age two years ago is: (x+3)-2 = x + 1 (years old)
As given, two years ago he was two-thirds of his sister's age, so that we have:
<em>The boy's age two years ago = </em><em> × the sister's age two years ago</em>
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=> x + 3 = 8 + 3 = 11
So the present age of the boy is 8 years old, of the sister is 11 years old
Answer: C. The decline in the P/E ratio more than offset earnings growth and this pushed the market cap down.
Explanation:
Market Cap = P/E ratio * Earnings
Market cap is dependent on both the P/E ratio and Earnings as shown by the formula and as shown on the graph, the P/E ratio kept on decreasing which means that for the Market Cap to decrease, the downward pull of the P/E ratio must have overshadowed the growth in earnings such that the Market Cap went down instead of up.
For instance, if the earnings were $40 billion and the P/E ratio was 15, Market Cap would be $600 billion.
If earnings increased to $45 billion but P/E ratio decreased to 10, Market Cap would become $450 billion.
