Answer:
25.21
Explanation:
The Price Earnings Ratio explains the correlation between a company’s stock price and earnings per share (EPS).
Calculating the price earning ratio is by the formula below.
PE = share price/ earning per share.
For Jupiter, the share price is $1.80 per
The EPS is as net income/outstanding shares
net income is the profits = 5 % of 9,000
net income = 5/100 x $9000
=0.05 x $9000
=$450
EPS =450/6300
EPS= 0.071
The Price Earnings Ratio= $1.80/0.0714
=25.21
Present value annuity will be given by:
PVA=P[1-(1+r)^-n]/r
where:
PVA=present value annuity
P=periodic paymeny
r=rate per period
n=number of periods
substituting the value we get
PVA=60*[1-{1/(0.09/52)]^20})/(0.09/52)]
this will give us:
$28,927.38
Answer:
D. 18.50%
Explanation:
In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below
Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)
= 3.50% + 1.5 × (13.50% - 3.50%)
= 3.50% + 1.5 × 10%
= 3.50% + 15%
= 18.50%
The (Market rate of return - Risk-free rate of return) is also known as market risk premium. Since the market risk premium is given i.e 10% so the market rate of return would be 13.50%
Answer:
D. highly elastic
Explanation:
As we know that the price and the quantity demanded has an inverse relationship as per the law of demand.
In the high elastic demand, if the price changes slightly then it would have a big impact on the quantity demanded.
In the given scenario, if the gas stations change the price either increase or decrease, the quantity demanded significantly decreased which reflects that the demand is highly elastic
<span>Firms utilize non price competition when they attempt to add value to their product by offering service after the sale, product demonstrations, or interactive customer Web sites. Non price competition refers to competing against your competitors when price is not the driving force. Standing out in a consumers mind based on the value your product has to offer over another is far more important than price competition. </span>