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goldfiish [28.3K]
3 years ago
14

Hermann Corporation had net income of $200,000 and paid dividends to commonstockholders of $50,000 in 2012. The weighted average

number of shares outstanding in2012 was 50,000 shares. Hermann Corporation's common stock is selling for $50 pershare on the New York Stock Exchange. Hermann Corporation's price-earnings ratio is
Business
1 answer:
diamong [38]3 years ago
3 0

Answer:

the P/E ratio is 12.5

Explanation:

the price-earning ratio represent how many times the earnings per shares "fits" into the price of the share. It represent how many years are needed to payback the investment of rchase the share.

We first need the earningper share:

\frac{income - preferred \: dividends}{outstading \: shares} = EPS

200,000 net income / 50,000 = 4 dollars EPS

price-earnings ratio:

\frac{Price}{EPS}  = P/E

50/4 = 12.5 years

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Answer:

A. an increase in the price level (inflation)

Explanation:

When there is an unanticipated increase in aggregate demand it usually result in the general increase in the price level of that good demanded (inflation). This is because when there is an unpredicted increase in demand for a good, the demand becomes higher than the supply for that good at that particular period. Because the supply is now less than the aggregate demand, the prices of the commodity is then increased to discourage demand. The increase in the price of the commodity (inflation) therefore is a direct result from the increase in the aggregate demand for that commodity.

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In his​ report, Wade described the strengths and weaknesses of each of his subordinates. He made a note of their past performanc
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Written essay

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As you start consuming potato chips, your marginal utility is very high, but begins to fall slowly until you've eaten 10 chips.
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Answer:

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