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vovikov84 [41]
3 years ago
7

If a firm has the market price of the firm's common stock of $500 and its annual earnings per share of $50 , then the firm has a

P/E ratio of.
Business
1 answer:
sweet [91]3 years ago
8 0

Answer:

Price / Earning ratio = 10

Explanation:

the P/E ratio will be determinate as follow:

\frac{Market \: price}{EPS}

Thus, the P/E will be 500/50 = 10

the price earning ratio stand for the amount of time required to payback the investment. In this case, 10 years as the market value is 500 dollars and eahc year the share earn 50 dollars

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Chicago Company reported the following information at the end of the current year
Nookie1986 [14]

Answer:

37,000 common stock outstanding

preferred stock dividends = $82,000 x 10% = $8,200

Case A The preferred stock is noncumulative, the total amount of dividends is $32.000

  • dividends distributed to preferred stockholders = $8,200
  • dividends distributed to common stockholders = $32,000 - $8,200 = $23,800

since the preferred stocks are non-cumulative, if dividends are not paid during a certain they are "lost" and will not be recovered.

Case B The preferred stock is cumulative, the total amount of dividends is $24,600

  • dividends distributed to preferred stockholders = $8,200 x 3 = $24,600
  • dividends distributed to common stockholders = $0

Case C The pretend stock is cumulative, the total amount of all dividends is $90,200

  • dividends distributed to preferred stockholders = $8,200 x 3 = $24,600
  • dividends distributed to common stockholders = $90,200 - $24,600 = $65,600

5 0
3 years ago
True or false: if hubert's fire engines were a competitive firm instead and $80,000 were the market price for an engine, decreas
Amanda [17]

FALSE

because hubert being a competitive firm, if it decreases the price of engine, demand increases and thus production increases. Therefore revenue also increases.

7 0
3 years ago
Specialty stores like Lids carry ________ with ________. A. wide product lines; shallow assortments B. narrow product lines; sha
4vir4ik [10]

Answer:

narrow product lines; deep assortments

Explanation:

product line is group of same type of product selling under a same brand name.

narrow and wide product line is defined on the basis of number of type of product being sold by a retailer.

Narrow product line is a retailing strategy which means that few type of products which is being sold by a retailer.

Example: Pizza hut which sells only limited number of eatables thus they have narrow product lines

Wide product line means very high number of different type of product is being sold by the retailer.

Example:wall mart which sells wide number of products

Assortment is strategy in retail which defines number of different brands of same type of product which is being sold by a retails.

It is of two types

shallow assortments: It means very few brands of same type of product is offered by a retailer.

deep assortment: It means large of number of different brand of same type of product is being sold by a retailer.

Specialty stores are store which sell only limited type of product but they offer wide variety of choices of brand for the products which they sell. In retail marketing term they keep narrow product line but deep assortments as mentioned in the definitions above

Since Lids is a specialty store the correct option would be narrow product line, deep assortments.

4 0
2 years ago
The dual banking system in the u.s. today refers to:
Ymorist [56]
A dual banking system refers to the U.S in which banks supervised by the federal government and banks operated by the states are operated side by side. <span />
3 0
3 years ago
What are some ways Panera bread earns the trust of its public?
ohaa [14]
Having a welcoming environment, public health license and having a staff that follows the rules.
6 0
3 years ago
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