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
masha68 [24]
2 years ago
12

A good indicator of the value of a company is the ratio of the price of its stock to its yearly earnings expressed as dividends.

This ratio is called the Price to Earnings or P/E ratio. If the price of a stock is $36 and it's earnings are $3.00, by how many cents must the earnings decrease in order that the P/E ratio increases by 20%?
Mathematics
1 answer:
gulaghasi [49]2 years ago
3 0

Answer:

4.92 cents

Step-by-step explanation:

The Price to Earnings or P/E is the ratio of the price of its stock to its yearly earnings expressed as dividends.

The price of a stock is $36 and it's earnings are $3.00

This means the price to earnings ratio,

P/E = 36/3 = 6

Let us express this ratio as percentage. This becomes

36/3 ×100 = 1200%

This means the ratio of price to earnings = 1200%

For an increase of 20%, the ratio of price to earnings will be = 1200 + 20 = 1220%.

Let x be the the value of earnings that would increase the ratio by 20%

36/3 × 100 = 1200%

36/x × 100 = 1220℅

3600/x = 1220

x = 3600/1220 = $2.9508

The amount by which the earnings must decrease in order that the P/E ratio increases by 20% will be

$3 - $2.9508 = $0.0492.

Converting to cents, we multiply by 100. It becomes

0.0492×100 = 4.92 cents

You might be interested in
50 point question for this geometry test answer
aniked [119]

Answer:

d

Step-by-step explanation:

8 0
2 years ago
Read 2 more answers
Directions - Identify the key components, create an exponential equation, then answer the questions.
Tamiku [17]

Answer:

Directions - Identify the key components, create an exponential equation, then answer the questions.  

​Exponential Form:  y=a\cdot b^{x},\ a\ is\ the\ \textit{starting}\ \textit{value},\ b\ is\ the\ base\ (rate).\y=a⋅b  

x

, a is the starting value, b is the base (rate).  

​In a small town, the stray dog population is rapidly increasing. there are currently 15 stray dogs, and it is estimated that the population will triple every year. How many dogs will there be after 1 year? 2 years? 3 years?

​

​1) a =  15  

 4) Dogs after 1 years = 45  

 ​

​2) b =  3  

 ​5) Dogs after 2 years =   135

 

​3) Equation:    

y= 15 ×3x

 ​6) Dogs after 3 years =    

405

 

Step-by-step explanation:

8 0
2 years ago
Sweet t purchased a new pair of jeans to wear at the battle of the bands on sale at 40% off.He saved $20 what was his regular pr
Oliga [24]
If he got the jeans for 40% off he paid 60% of the cost for the jeans. With that you can setup an equation.

20 is 60% of what number

is signifies equals and of signifies multiplication

20 = 0.6*x
x = 20/.6
x = 33.33

The regular price of the jeans is $33.33
8 0
2 years ago
choose an equation in slope-intercept form for the line that passes through (-8,1) and is perpendicular to the y=2x-17. select o
Fed [463]
Y = 2x - 17, comparing to y = mx + c, slope m = 2.

If perpendicular, the new slope would be -1/2, that is the negative reciprocal of 2.

And passing through (-8 , 1).

using y = mx + c,  and x = -8,  y = 1,  m = -1/2

1 = -1/2*-8 + c

1 = 4 + c

1 - 4 = c

c =  -3

y = mx + c,  substituting m = -1/2, and c = -3,    y = -(1/2)x - 3.

Option C.
5 0
3 years ago
Allen has a photo that is 6 in by 8 in. What will the dimensions of the photo be if he scales it down by a factor of one-half ?
olchik [2.2K]
3 in by 4 in
because one half of 6 is three and one half of 8 is 4
5 0
3 years ago
Other questions:
  • What is - (<img src="https://tex.z-dn.net/?f=%20%5Cfrac%7B3%7D%7B5%7D%20" id="TexFormula1" title=" \frac{3}{5} " alt=" \frac{3}{
    12·1 answer
  • What is the answer to 168÷54
    10·2 answers
  • Sue uses the expression (8×3,000)+(8×200)+(8×9) to help solve a multiplication problem. What is sues multiplication problem?
    8·1 answer
  • An oak tree is 1.5×1031.5×103 centimeters tall. Which unit of measurement is most appropriate to measure this height?
    6·1 answer
  • Write two fractions that are equivalent to 2/6
    14·2 answers
  • Use the substation to solve the system of equations. Y=x+1.75 4x-2y=4
    10·1 answer
  • How to solve instantaneous velocity
    10·1 answer
  • What does 5x-2=6+x equal to
    7·2 answers
  • Help me please with my math homework (6th grade)
    10·2 answers
  • What is the average rate of change of g over the interval [-2,4]
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!