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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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3 years ago
Adrian contributed an antique vase she had owned for 25 years to a museum. At the time of the donation, the vase had a value of
qaws [65]

Answer:

How much may Adrian deduct?

This depends on whether the museum is private or not. If the museum belongs to a public charity or a university, then Adrian can deduct full fair market value = $35,000. Since Adrian's AGI is $80,000, she could donate up to $40,000 (half her AGI).

But if the museum is a private organization, then Adrian can deduct only her basis in the vase = $15,000

How would your answer to Part a change if, instead of displaying the vase, the museum sold the vase to an antique dealer?

Once you donate artwork, unless you strict prohibit the museum from selling it, then they can sell it and you cannot do anything about it. Some donors specific certain terms for their donations, e.g. artwork cannot be sold and it must be exhibited at least a certain amount of time, in certain places, etc. But if Adrian didn't include any clause on her donation, then whatever happens to the vase is up to the museum.

Currently, museums are less likely to accept restricted donations, unless of course the artwork is worth it.

3 0
4 years ago
Mill Co.'s trial balance included the following account balances at December 31, Year 6:
o-na [289]

Answer:

D) $45,000

Explanation:

The computation of the amount which is included in the current liability section is shown below:

= Account payable balance + bonds payable -  discount on bonds payable + dividend payable

= $15,000 + $25,000 -  $3,000 + $8,000

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The current liability is that liability which is arise for one year. Since, the notes payable is a long term liabilities so we do not consider in the computation part.

4 0
3 years ago
If I read 12 pages in 15 minutes how many pages while I read in two hours
N76 [4]

Answer:

96 pages in two hours

Explanation:

You can read 48 pages in 1 hour because 15 x 4 is 60, and 12 x 4 is 48. So you just double 48 and you get 96.

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