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
s2008m [1.1K]
3 years ago
13

Sankey Co. has earnings per share of $3.95. The benchmark PE is 18.8 times. What stock price would you consider appropriate

Business
1 answer:
trapecia [35]3 years ago
7 0

Answer:

Stock price = $74.26

Explanation:

<em>The value of a share can be determined using the price earning ratio model. According to this model, the price of a share is estimated as the EPS of the company multiplied by a representative (benchmark) price- earning (P/E) ratio</em> .

The  ratio relates the price of a stock to its earning. A stock with a higher P/R indicates a high potent for growth.

Price of stock =Earnings per share( EPS) × benchmark P/E ratio  

The appropriate comparative price earnings ratio in the question has been given as 18.8 times.

DATA-

EPS- 3.95

PE- 18.8

Stock price = 3.95 ×  18.8= $74.26

Stock price = $74.26

You might be interested in
Suppose the demand function​ (D) for golf clubs​ is: Qequals150minus1.00​P, where P is the price paid by consumers in dollars pe
nadya68 [22]

Answer:

P = $75 per club

n= 75,000 clubs

Explanation:

The demand and supply functions are:

(D): Q=150-1.00P\\(S): Q=1.00P\\

The equilibrium price is the price that yields a quantity demanded equal to the quantity supplied:

150-1.00P=1.00P\\P=\frac{150}{2}\\P=\$75

The number of units sold at that price is:

n=1,000*(1.00*75)\\n=75,000\ units

8 0
2 years ago
current challenges in operations management include all of the following​ except: part 2 a. rapid product development. b. lean o
Ghella [55]

Out of the choices provided above, it can be said that the current challenges in operations management include all of the following​ except increased communication cost. Therefore, the option C holds true.

<h3>What is the significance of communication costs?</h3>

Communication costs can be referred to or considered as the costs incurred by an organization to spread awareness and convey the message of achieving efficiency in the management, especially related to the operations of an organization.

Therefore, the option C holds true and states regarding the significance of communication costs.

Learn more about communication costs here:

brainly.com/question/2180772

#SPJ4

4 0
1 year ago
Which of the following is an essential part of being an entrepreneur?
Molodets [167]

Answer:

B. Taking risks.

Explanation:

4 0
3 years ago
Other things the same, when the price level rises, interest rates select one:
laiz [17]
I think its number c, i hope it is
:P

5 0
2 years ago
David taylor purchased a teapot for $23.95, a coffee maker for $33.95, and a deluxe microwave for $196.75 for his mother's birth
Kaylis [27]
The answer is $275.02
6 0
2 years ago
Other questions:
  • On December 31, Year 1, Taylor, Inc. signed a binding agreement with a bank for the refinancing of an existing note payable sche
    11·1 answer
  • Matching Exercise: Match the type of bond to its definition. a)The Catastrophe Bond: b)A Warrant Bond: c)An Income bond: d)A Con
    6·1 answer
  • Isaac benefited from his experience working for an established private company that provided state-of-the-art lighting for music
    14·1 answer
  • How is studying microeconomics significant​
    14·1 answer
  • A frim must choose its ______ carefully; if its picks too narrow a set it may fail to reach the volume of sales it needs but if
    8·1 answer
  • 8. Brady Inc. reported FIFO ending inventory of $114,000 and FIFO beginning inventory of $110,000 for 2018. Inventory purchases
    15·1 answer
  • The measure of a​ company's ability to collect cash from its customers who purchase on account is the A. accounts payable turnov
    6·1 answer
  • A person buys X in one market and combines it with Y purchased in another market. The combination of X and Y gives Z, which the
    5·1 answer
  • What is mextura give one example​
    7·2 answers
  • The closing entry for dividends involves a debit to ______ and a credit to ______. (Select all that apply.)
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!