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kakasveta [241]
4 years ago
12

Firm A has earnings-per-share of $3.00. Firm B has earnings-per-share of $2 and a price-per-share of $30. Using the Price/Earnin

gs (P/E) ratio of firm B as a benchmark, what should be the price-per-share of firm A?
Business
1 answer:
stealth61 [152]4 years ago
8 0

Answer:

Company A's price per share is $45

Explanation:

The P/E ratio of one company can be used by investors and analysts to determine the value of another companie's stock in the industry. This is called apples-to-apples comparism.

The P/E ratio is used to value a company by comparing its share price to earnings per share.

P/E ratio= market value of shares/ earnings per share

For company B

P/E ratio= 30/2= $15

Using company B's P/E ratio as a benchmark for company A

15= Price per share /3

Price per share = 15*3= $45

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An investor owns 200 shares of a stock that has split 2 for 1. The investor will get the additional 200 shares by_______.
Scrat [10]

Answer:

Explanation:

Given information

Number of shares owned = 200 shares

Split ratio = 2 for 1

Number of additional shares = 200 shares

The additional shares would get when the investor received the new certificate which specifies the additional shares plus the old certificate is also with the investor which decreased the par value of each share.  

It is a cheaper method as compare to cancel the shares plus issuing them

6 0
3 years ago
During the period, labor costs incurred on account amounted to $175,000, including $150,000 for production orders and $25,000 fo
tino4ka555 [31]

Answer:

Option (c) is correct.

Explanation:

Given that,

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Work in process A/c Dr. $23,000

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3 years ago
Which members of OPEC would be the most likely to favor high oil prices now because of their small percentage of the world prove
solmaris [256]

The members of OPEC that would be in favor of high prices due to the small oil reserves that they have would be the countries in Africa

  • Ecuador
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  • Tunisia
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<h3>What is OPEC?</h3>

This is an organization of the petroleum producing countries of the world.

Due to a rise in the oil prices now, these nations would most likely be favored in the sales of their products

Read more on OPEC here: brainly.com/question/26412451

6 0
3 years ago
Suppose the economy is in long-run equilibrium at the level of potential output. What will be the long-run effect of an expansio
nirvana33 [79]

Answer:

Higher prices.

Explanation:

Expansionary monetary policy seeks to grow the economy by increasing the money supply, lowering interest rates, and stimulating demand. As we know from the supply/demand curves, higher demand leads to higher price levels.

3 0
3 years ago
Grains occupy slightly more than ____________ of the plate. The message to make half your grains ____________ is stressed throug
Vladimir79 [104]

Answer:

Grains  occupy slightly more than <u>one-fourth</u> of the plate. The message to make half your grains <u>whole</u> is stressed throughout accompanying consumer-education materials.

Explanation:

7 0
3 years ago
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