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Dmitry_Shevchenko [17]
3 years ago
12

You are trying to value the common stock shares BeGood Company using a market multiples approach. Begone just reported annual ea

rnings of $1.74 per share. BeGood is a privately held corporation and has three main publicly traded competitors. Below, the most recent price/earnings multiples are presented for each competitor: Competitor P/E Multiple
BeSafe 11.20
Y-Not 13.25
R-U-Sure 14.88
Based on this information, determine the share price of BeGood. Use the market multiple approach and compute to the second decimal place
Business
1 answer:
lakkis [162]3 years ago
7 0

Answer:

$22.81

Explanation:

We can easily calculate share price for BeeGood company just by multiplying the current earnings per share with an average P/E ration of competitors

P/E = Price earning ratio

EPS = Earning per share

Formula: Share price = PE x EPS

Share price = \frac{(11.2+13.25+14.88)}{3} x $1.74

Share price = $22.81

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The problem of _________________ arises when an antique dealer knows more about the quality of an item than the potential buyer,
vlada-n [284]

Answer:

Option (D) is correct.

Explanation:

Imperfect information refers to a situation in which both the parties (i.e buyer and seller) have different information. For example; In a market of second hand car industry, the buyer have less information about the car as compared to the seller. In this type of industry, the seller have more information about the condition and quality of used car.

In our case, the seller of antique have more information about the product, so this will lead to give a disadvantage to a potential buyer of antique.

8 0
3 years ago
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During a certain year, the consumer price index increased from 120 to 132 and the purchasing power of a persons bank account inc
Tatiana [17]
The answer is D.} the inflation rate was 12 percent.
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3 years ago
Technician who is responsible for keeping an airport's control tower's electronic equipment in working order has higher ________
Ronch [10]

The answer to the blank space in the question is task significance. Task significance is <u>the extent to which a person’s job is perceived as important and has impact on both the company and customers</u>.

Jobs with higher task significance would be perceived as important by both the person doing it and other people around him, including his co-workers and customers.

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3 years ago
To address the widespread and growing concern of contaminated food causing serious injury and death to individuals throughout th
MAVERICK [17]

<u>Answer: </u>

By implementing the food safety compliance policy, the food company would only make sure that the food they have given is safely consumable, but by putting consumer safety first, the companies would go beyond the attempts to avoid fine and take special measures to ensure true safety of the consumers.

<u>Explanation: </u>

  • Though the Food and Drug Administration of the United States bears the responsibility of food safety and is accountable towards both, the public and the government, it would not be possible without the cooperation of the food companies to ensure utter food safety for the public.
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8 0
3 years ago
Financial contracts involving investments, mortgages, loans, and so on are based on either a fixed or a variable interest rate.
Svetradugi [14.3K]

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

1) Deposit= $500

An annual simple interest rate of 6.6%

Number of years= 13 years

To calculate the final value, we need to use the following formula:

FV= PV*[i*n]

FV= 500*(0.066*13)= $429

2) Deposit= $500

An annual compounded interest rate of 6.6%

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To calculate the final value, we need to use the following formula:

FV= PV*(1+i)^n

FV= 500*(1.066^13)

FV= $1,147.66

3) Deposit= $500

A quarterly compounded interest rate of 6.6%

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Now:

n= 13*4= 52

i= 0.066/4= 0.0165

FV= 500*(1.0165^52)= $1,171

7 0
3 years ago
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