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
Which phrase describes what users can see by selecting the attachment in the message and choosing the preview option in outlook
Gnom [1K]

Answer:

B PLEASE MARK BRAINLIEST!!!!!!

Explanation:

4 0
2 years ago
Read 2 more answers
Crane Sales Company uses the retail inventory method to value its merchandise inventory. The following information is available
wlad13 [49]

Answer:

c) $222,500 $313,500

Explanation:

Calculation for cost-to-retail ratio

COST

Beginning inventory $ 30,000

Add: Purchases $190,000

Add: Freight-in $2,500

Cost=$222,500

RETAIL

Beginning inventory $ 45,000

Add: Purchases $260,000

Add: Net markups $8,500

Retail = $313,500

Therefore the cost-to-retail ratio will be $222,500 $313,500

4 0
3 years ago
Which of the following is an indicator of how much output the average person would get if all output were divided up evenly amon
Effectus [21]

Answer:

C. per capita  GDP

Explanation:

Per capita income is the average income earned per person in a country during a specified period of time . It is the measure of a country's Gross domestic products against its total population.

Per capita GDP is a measure of a country's economic output that accounts for its number of people. It divides the country's gross domestic product by its total population.  it a good measurement of a country's standard of living. It tells you how prosperous a country feels to each of its citizens.

It is calculated by dividing the total GDP of a country by its population

therefore going by the question and the explanation given the best possible answer is C. Per capita GDP

5 0
3 years ago
8. Suppose the total cost function is as follows: TC= x^3/3 -x^2+11x
elena55 [62]

At 1.5 the average total cost is a minimum and the total cost will be 10.25 where the TC = total cost; x = output (in 1,000 units)

<h3>What are maxima and minima?</h3>

Maxima and minima of a function are the extremes within the range, in other words, the maximum value of a function at a certain point is called maxima and the minimum value of a function at a certain point is called minima.

We have a total cost function:

TC = x³/3 - x² + 11x

Average total cost:

\rm F\left(x\right)=\dfrac{\left(\dfrac{x}{3}^3-\:x^2\:+\:11x\right)}{x}

Differentiating with respect to x and equating to x

d(F(x))/dx = 0

We will get:

x = 1.5

F'(1.5) >  0

At 1.5 the average total cost is a minimum.

Thus, at 1.5 the average total cost is a minimum and the total cost will be 10.25 where the TC = total cost; x = output (in 1,000 units)

Learn more about the maxima and minima here:

brainly.com/question/6422517

#SPJ1

7 0
2 years ago
On July 1, 2021, Markwell Company acquired equipment. Markwell paid $175,000 in cash on July 1, 2021, and signed a $700,000 noni
MAVERICK [17]

Answer: b) $841,666.

Explanation:

Markwell will record the equipment at the present value of the amounts spent to purchase it.

Present value of the cash paid = $175,000

Present value of the noninterest-bearing note after a year = 700,000/(1 + 5%)

= $666,667

Total = 175,000 + 666,667

= $841,667

As per the options;

= $841,666

8 0
3 years ago
Other questions:
  • Below are some of the accounts that Company J has on their books:
    13·1 answer
  • Career exploration unit 5 test answers- edgenuity- business management and administration careers
    6·2 answers
  • What is the business importance of managing the quality of business processes? Describe two methods of quality management.
    10·2 answers
  • The nation of Forlorn is in the middle of a severe financial crisis. The prime minister has increased government spending by tri
    12·1 answer
  • The advertising campaign for Crest toothpaste lets consumers know about its newest flavor, and also mentions its history as an e
    11·1 answer
  • Ochre holds one ton of perishable fruit in storage for Produce Corporation. If Produce does not pay for the storage, under the d
    5·1 answer
  • When bonds are converted into common stock____.
    9·1 answer
  • Which of these would be considered an entrepreneur?
    9·2 answers
  • Deoro Company has identified the following overhead activities, costs, and activity drivers for the coming year:
    9·1 answer
  • Which of the following methods may be used to report comprehensive income? (Select all that apply.) Check All That Apply In a si
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!