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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.

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A well insulated 3-m X 4-m X 6-m room initially at 7 degrees C is heated by the radiator of a steam heating system. The radiator
poizon [28]

Answer:

The average temperature of air in 45 minutes is 10.74°C

Explanation:

Given

Time t = 45 minutes

Initial Air Temperature, T1 = 7°C

Fan work W = 120W

Radiator Volume = V1 = 15L

Initial Steam Pressure = P1 = 200kPa

Initial Steam Temperature = Ts1 = 200°C

Final Steam Pressure = P2 = 100kPa

The radiator is our system.

We take the system as a close system.

The energy balance is given as follows

-Qout = ∆U

-Qout = m(u2 - u1)

Calculating u2

From steam table (see attachment below)

At P1 and Ts1

P1 = 200kPa, Ts1 = 200°C

u1 = 2654.6KJ/Kg

v1 = 1.08049 m³/Kg

At P2 = 100kPa,  v1 = v2

vf = 0.001043m³,   vg = 1.6941m³/kg    uf = 417.4kj/kg      ufg = 2088.2kj/kg

x2 = (v2 - vf)/(vg - vf)

x2 =  (1.08049 - 0.001043)/(1.6941 - 0.001043)

x2 = 1.079447/1.693057

x2 = 0.63757

u2 = uf + x2ufg

u2 = 417.4 + 0.63757 * 2088.2

u2 = 417.4 + 1331.374

u2 = 1748.774

Solving for m

m = V1/v1

m = 15L/1.08049

m = 0.015/1.08049

m = 0.01388Kg

So, -Qout = m(u2 - u1) becomes

0.01388(1748.774 - 2654.6)

= 0.01388 * -905.826

= -12.572

-Qout = -12.572

So, Qout = 12.572KJ

The dimensions of the room is 3 * 4 * 5.

The mass and volume of air in the room is given by

Volume = 3 * 4 * 6 = 72m³

Mass = P * V/RT

Where R = Gas Constant = 0.287

T = T1 = 7°C = 273+ 7 = 280K

P = P2 = 100kPa

Mass = (100 * 72)/(0.287 * 280)

Mass = 7200/80.36

Mass = 89.597Kg

The amount of work is defined by

Work = Fan work W * Time t

Work = 120 * 45 minutes

Work = 120 * 45 * 60seconds

Work = 324000J

Work (fan, in) = 324KJ

Taking the air in the room as the system

The energy balance is as follows

∆Energy = E(in) - E(out)

E(in) = Q(out) + W(fan,in)

E(out) = W(out)

∆Energy = ∆U

So, we have

∆U = Q(out) + W(fan,in) - W(out)

∆U + W(out) = Q(out) + W(fan,in)

∆U + W(out)  = 12.572 + 324

∆U + W(out) = 336.572

∆U + W(out) = ∆H (Change in heat energy)

This is given by mc(T2 - T1)

Where m = 89.597kg

c = specific heat of air at constant pressure = 1.005

T1 = 7°C

Substituting in these values, we have

336.572 = 89.597 *1.005 (T2 - 7)

=> 336.572 = 90.044985(T2 - 7)

T2 - 7 = 3.74

T2 = 3.74 + 7

T2 = 10.74°C

8 0
4 years ago
Explain what is happening during each phase of the cycle with: I. output, II. employment III. and inflation
Ludmilka [50]

Answer:

During each phase of the economic cycle of Recession and Expansion, the following economic variables fluctuate, accordingly:

I. Output: During Recession, production output reduces.  But, during expansion, product output rises with rising income, employment, and even stable inflation.

II. Employment: During phases of economic Expansion, employment rises, while it contracts during the phases of Recession.

III. Inflation: Due to rising income and output during economic expansionary periods, inflation rate also rises.  It reduces when the economy enters a recession.

Explanation:

Business or Economic Cycle describes the recurrent, but not periodic, sequence of changes in the aggregate economic activities of a nation.  It usually cascades between the spectrum of expansion and recession.  This means that there is an alternation of the phases of economic cycle between expansion and contraction (recession) when the aggregate economic activities may rise or decline due to the equal movement of economic variables like the GDP output, employment, income, and sales.

5 0
4 years ago
Consider the following events:25,000 shares of preferred stock, cumulative, 5%, $10 par was issued for $15 a share.The annual ca
Mars2501 [29]

Answer

The answer and procedures of the exercise are attached in the following archives.

Step-by-step explanation:

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

Download xlsx
5 0
3 years ago
Which factor endowment would be classified as a basic factor by Michael Porter?
bija089 [108]

Answer:

The correct answer is letter "C": natural resources.

Explanation:

Factor endowment refers to the factors of production -<em>land, labor, capital, and entrepreneurship</em>- a nation has available for manufacturing. Countries with more factors of production available tend to be richer than those that do not. Possessing more factor endowments available can also play a key role for countries to establish a comparative advantage compared to other nations.

Therefore, <em>American economist Michael E. Porter (born in 1947) is likely to consider natural resources a  basic factor endowment while skilled labor force, for instance, would be considered as an advanced factor of production. </em>

5 0
3 years ago
When a cpa examines a client's projected financial statements the cpa's report should:________.
8090 [49]

The CPA or Certified Public Accountant's report should <u>state that the CPA performed procedures to evaluate management assumptions</u> when they examine a client's projected financial statements.

CPAs are public accountants who are licensed to practice their profession publicly and must always comply with the government's taxation practices and provisions of Statements on Standards for Accounting and Review Services.

Take note, CPA report doesn't refer to the their auditor's report on the historical financial statements. The report cannot also explain the principal differences between the historical statements and the projected financial statements.

Additionally, a CPA's report must not include the their opinion on the client's ability to continue as a going concern.

Curious about Code of Ethics for CPAs? Read here: brainly.com/question/28198157

#SPJ4

3 0
1 year ago
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