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
matrenka [14]
3 years ago
9

Huck Finn is thinking about purchasing some stock in Mississippi Mining Company (MMC). Huck uses the price/earnings ratio techni

que when purchasing stock. MMC stock is currently selling for $100 per share. MMC is expected to generate a profit of $10 per share this year. The industry averages a P/E of 9.5. Huck considers MMC to be approximately equal to other companies in its industry.
Business
1 answer:
musickatia [10]3 years ago
4 0

Answer:

Profit earning ratio of MMC = 10%

Explanation:

Given:

Current stock price = $100

Yearly profit on each share = $10

Profit earning ratio (P\E ratio) =?

Computation of profit earning ratio:

Profit earning ratio (P\E ratio) = Current stock price / Yearly profit on each share

Profit earning ratio (P\E ratio) = $100 / $10

Profit earning ratio (P\E ratio) = 10

It is computed that MMC's Profit earning ratio is nearer to the industry averages P/E ratio so, the investor can wait for some time to purchase this stock.

You might be interested in
If a drug company is granted a patent on a new medication, which result is possible?
GalinKa [24]

C, is the correct answer

8 0
3 years ago
I need help please n thanks
Tomtit [17]

Answer:

The first foundation is called THE foundation  You need to maintain a accurate balance so you can keep track

Explanation:

3 0
3 years ago
When Drew joined Reality Entertainment, Inc., he was taken aback by the __________ program that the company offered. He could ch
denis23 [38]

Answer:

cafeteria-style benefits plan

Explanation:

Based on the information provided within the question it seems that Drew was taken aback by the cafeteria-style benefits plan. This is a benefits plan offered by many company's that allows the employee to choose from a variety of different benefit offerings to create their own personalized benefits package that best supports their needs. Such options may include health, dental, eye, and life insurance choices as is the case in this scenario.

6 0
3 years ago
Read 2 more answers
Why are many entrepreneurs uncomfortable on a relaxing vacation? A. They don't get along well with others. B. They have a sense
horsena [70]
The answer is c......
3 0
3 years ago
Read 2 more answers
Under the authority of the commerce clause, Congress can pass laws as long as what criteria are met?
GrogVix [38]

Answer:

The answer is: E) As long as the law affects commerce among the states, or interstate commerce, in some way, the regulation is generally constitutional.

Explanation:

Article I, Section 8, Clause 3 of the Constitution of the US:

[The Congress shall have Power] To regulate Commerce with foreign Nations, and among the several States, and with the Indian Tribes.

Generally speaking, Congress can pass laws that affect trade (either allow or restrict trade) between states, between nations or with Native American Tribes. It also includes laws about navigable waters, e.g. rivers and oceans.

8 0
3 years ago
Other questions:
  • Hsu Company reported the following on its income statement: Income before income taxes $302,634 Income tax expense 90,790 Net in
    11·1 answer
  • _____ allows industries, organizations, and companies to approach business decisions from different perspectives. Arbitration Er
    13·1 answer
  • When is going to be why would you put money into saving account
    10·1 answer
  • The basic activities that comprise marketing include the​ following: A. Financial ratio analysis B. Marketing research and targe
    12·1 answer
  • Personal values and work values cannot be related. Please select the best answer from the choices provided T F
    10·2 answers
  • Misbah Corporation manufactures two styles of lampslong dasha Bedford Lamp and a Lowell Lamp. The following per unit data are​ a
    13·1 answer
  • Karla starts her speech by saying, “Many of you know that I work closely with the AIDS Alliance agency in our city. You may also
    11·1 answer
  • True or false. leadership in a team is a key component to team success.
    6·1 answer
  • Helppppppppppppp
    15·1 answer
  • In an economy where the money supply and aggregate demand have been decreased by the central bank, you know that the central ban
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!