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
Firlakuza [10]
3 years ago
13

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:
kari74 [83]3 years ago
7 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
___________ are reported in the business section of magazines or newspapers, as well as online.​
aleksley [76]

Answer:

The stock market values

Step-by-step explanation:

PLS GIVE BRAINLIEST

4 0
2 years ago
The temperature of an enclosure for a pet corn snake should be an average of 81° F. For the well-being of the corn snake, the te
mario62 [17]

Answer: |81-x|<5

Step-by-step explanation:

Given: Temperature of an enclosure for a pet corn snake should be an average of 81° F.

Temperature in the enclosure should not vary by more than 5° F.

Let x= Temperature in the enclosure

Then, difference between average and current temperature should less the 5.

i.e. |81-x|<5     (required absolute value equation  )

hence, the absolute value equation could be used to determine the minimum and maximum temperatures recommended for the corn snake enclosure:

|81-x|<5

4 0
3 years ago
The third term of an arithmetic sequence is 14 and the 9th term is -1. Find the first four terms of the sequence.​
Liula [17]

Answer:

The first four terms of the sequence are :  19, 16.5 , 14 , 11.5

Step-by-step explanation:

In the given sequence:

a(3) =  14, a(9)  = -1

The general term of a sequence in Arithmetic Progression is:

a(n) = a + (n-1)d

a(3) = a + (3 -1) d = a + 2 d

and a(9) = a + (9- 1 ) d = a  + 8 d

⇒   a + 2 d =  14      .........  (1)

and a + 8 d  = -1    ...........  (2)

Now, solving the given system of equation, we get:

From (1), a  = 14 - 2 d

Put in (2), we get:

a + 8 d  = -1                ⇒   14 - 2 d + 8d = -1

⇒  14 +   6d   = -1  

or,  6d = -1 -14 = -15

⇒  d = -15/6 = -2.5

or, d  = -2.5

Then a  = 14 - 2 d = 14 - 2(-2.5)  =14 + 5  = 19, or a  = 19

Now, first four terms of the sequence is:

a = 19

a(2) = a + 4 = 19 - 2.5 = 16.5

a(3) = a + 2d = 19 + 2(-2.5) = 19 - 5 = 14

a(4) = a  + 3d = 19 + 3(-2.5)  = 19  - 7.5  = 11.5

Hence, the first four terms of the sequence are :  19, 16.5 , 14 , 11.5

4 0
3 years ago
OG.TV.To
DENIUS [597]

Answer:

sdfsdfesdfsdfsd

Step-by-step explanation:

6 0
3 years ago
What is the value of f(-1) when f(x)=2x+2? F(-1)=?
igomit [66]

Here is your function:

f(x)=2x+2

You're looking for f(-1). To get your answer, you have to replace all the x's with -1.

Here is your new equation:

f(-1) = 2(-1)+2

Multiply 2 by -1

2 \times -1 = -2

<em>Remember:</em>

MULTIPLYING

  • Positive(+) times negative(-) is equal to negative
  • Positive(+) times positive(+) is equal to positive
  • Negative(-) times negative(-) is equal to positive
  • Negative(-) times positive(+) is equal to negative

DIVIDING

  • Positive(+) divided by positive(+) is equal to positive
  • Positive(+) divided by negative(-) is equal to negative
  • Negative(-) divided by positive(+) is equal to negative
  • Negative(-) divided by negative(-0 is equal to positive

Since you're multiplying a negative number by a positive number, the answer will be negative.

Here is your new equation:

f(-1) = -2+2

Add -2 and 2:

-2+2 = 0

That means your answer is 0

        ↓

f(-1)=0

<em>If you have any questions, feel free to ask in the comments! :)</em>

5 0
3 years ago
Other questions:
  • Suppose a shipment of 160 electronic components contains 3 defective components. to determine whether the shipment should be​ ac
    12·1 answer
  • In the fifth year of operation the profit of a company was 3 times the profit it earned in the first year of operation if its pr
    13·1 answer
  • What is the product of the fractions below? 6/11 times 7/3
    14·2 answers
  • What is the correct answer. what is the focus point of a parabola with this equation? y=1/8(x^2-4x-12)
    12·2 answers
  • What is the volume?<br> 9 m<br> 19 m<br> 7 m
    9·2 answers
  • The length of a rectangle is 3 times its width. The rectangle’s width is 4 m. What is the area of the rectangle? Enter your answ
    14·2 answers
  • The probability of winning a game is 40%. How many times should you expect to win if you play each number of times? 5 times
    15·1 answer
  • What is the domain of the function f(x) = square root x-9+5?
    15·1 answer
  • Plz help me on this i dont know how to do this!!!
    6·2 answers
  • Evaluate The quantity of x cubed plus 3x squared minus 2x plus 7 divided by the quantity of x minus 2 end quantity period.
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!