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Blizzard [7]
3 years ago
8

Tito Corporation had net income of $2,000,000 and paid dividends to common stockholders of $300,000 in 2017. The weighted averag

e number of shares outstanding in 2017 was 400,000 shares. Tito Corporation's common stock is selling for $50 per share on the NASDAQ. Tito Corporation's price-earnings ratio is:_________
a. 10 times.
b. 4 times.
c. 12.5 times.
d. 3 times.
Business
1 answer:
Sidana [21]3 years ago
8 0

Answer:

a. 10 times

Explanation:

The computation of price-earnings ratio is shown below:-

Earning per share = Net income ÷ Weighted average shares outstanding

= $2,000,000 ÷ 400,000

= 5

Price earning per share = Market price per share ÷ Earning per share

= $50 ÷ 5

= 10 times

Therefore for computing the price earning per share we simply applied the above formula.

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Straight fixed-rate bond issues often have a Known maturity date where the principal of the bond issue is said to be repaid.

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?daniel has started a small shoe manufacturing company. he does not want the best equipment at the moment, so he is using equipm
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What type of economy is an economic system in which private businesses can operate freely with minimal state control
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Assume that the risk-free rate of interest is 5% and the expected rate of return on the market is 17%. A stock has an expected r
crimeas [40]

Answer:  ER(P) = Rf + β(Rm-Rf)

                 6      = 5 + β(17-5)

                 6      = 5 + β(12 )

            6 - 5     = 12β

                1        = 12β

                 β       =  1/12

                 β       = 0.083

Explanation: In determining the Beta of the stock, we need to apply capital asset pricing formula and then make Beta the subject of the  formula. Other variables will be substituted with the exception of Beta, which becomes the subject of the formula.                                                                                          

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A manager invests $400,000 in a technology that should reduce the overall costs of production. The company managed to reduce the
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Answer:

a. Considered sunk costs, not relevant in further decision making

Explanation:

the missing options are:

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