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Svetlanka [38]
3 years ago
10

Today, a firm has a stock price of $14.26 and an EPS of $1.15. Its close competitor has an EPS of $0.48. What would be the expec

ted price of the competitor's stock if estimated using the method of comparables
Business
1 answer:
serg [7]3 years ago
7 0

Answer:

$5.952

Explanation:

For the computation of expected price of the competitor's stock first we need to find out the P/E ratio of a firm which is shown below:-

P/E ratio of a firm = Stock price ÷ Earning per share

= $14.26 ÷ $1.15

= $12.4

Price of competitor's stock = P/E ratio of a firm × Earning per share

= $12.4 × $0.48

= $5.952

Therefore for computing the expected price of the competitor's stock we simply applied the above formula.

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Tara invests $2,500 today and another $1,500 a year from now. Her investments starting year 2 keeps increasing by $100 every yea
Neko [114]

Answer:

$61,175

Explanation:

Base on the scenario been described in the question, we expected to solve for the future worth

The table of the cash flow is shows in the picture

We can find that by calculating the Future worth

Future Worth = {2,500 + 1,500(P/A 7%,10) 100 + (P/G 7%,10) } [F/P 7%, 20]

Future worth = { 2,500 + 1500(7.024) + 100(27.716)}

Future worth = $61,175

6 0
3 years ago
Which of the following is false? Economists who advocate discretionary monetary policy argue that it is more likely to achieve t
just olya [345]

Answer: None of the above

Explanation:

All of the above are correct.

For option A, Economists who advocate discretionary monetary policy do indeed believe that the monetary authority using this policy is more flexible to shape the best monetary policy to the existing circumstances.

Option B is also correct because Crowding out occurs when the government increases investment by borrowing which leaves less money for the private sector to borrow so they spend less. The government spent money here yet the private sector did not spend less so it is Zero Crowing out.

Option C by option B's explanation holds true because the entire amount the Government increased by was denied the private sector.

Option D is also true as not all Economists prefer rule-based monetary policy to discretionary monetary policy.

They are all true.

3 0
3 years ago
Describe some of the actions taken by the monsanto corporation to control the seed industry:
koban [17]
<span>Some of the actions taken by the Monsanto Corporation to control the seed industry are: Purchasing of competing seed companies. Application of patents on Monsanto seeds. Forcing farmers to purchase new seed yearly instead of re-sowing existing seed. And lobbying for legislation in seed handling that favors Monsanto's processes.</span>
4 0
4 years ago
Read 2 more answers
systems play a key role in helping organizations achieve goals, which are set forth in a(n) statement. Computers can be used by
Sergio [31]

Answer:

The following are those which helps in playing a key role in helping organizations to achieve their goals:

O. Computers can be used by people at all levels of an organization.

O. Workers use information systems to produce and manipulate information.

O. Managers depend on information systems to supply data that is essential for long-term planning and short-term tactical planning.

O. A decision system helps workers and managers make non-routine decisions by constructing decision models that include data collected from internal and external sources.

O.  A(n) engine evaluates the facts and rules to produce answers to questions posed to the system.

O. Using a technique called logic, these systems can deal with imprecise data and problems that have more than one solution.

Explanation:

8 0
3 years ago
When the macroeconomic equilibrium is such that real GDP exceeds potential real GDP, the economy is suffering from ________, and
guajiro [1.7K]
Base on my research, the gap that is stated in the problem is the inflationary gap. This is the amount of the real GDP go beyond potential full-employment GDP. Upon eliminating this gap the government forms a policy that will allow the potential GDP to be equal to the real GDP and higher the price level. 
7 0
3 years ago
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