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RideAnS [48]
3 years ago
5

If the P/E ratio of a company's common stock were 12, and its earnings were $2.50 per common share:A. the market value of the co

mmon stock would be $20.83 per share.B. the market value of the common stock would be $25.00 per shareC. an increase in earnings of $0.20 per share, with no change in the multiple, would result in a market price increase of $2.40 per share.D. an increase in earnings of $0.20 per share, with no change in the multiple, would result in a market price increase of $1.67 per share.
Business
1 answer:
KengaRu [80]3 years ago
7 0

Answer:

C. an increase in earnings of $0.20 per share, with no change in the multiple, would result in a market price increase of $2.40 per share.

Explanation:

The P/E ratio (also sometimes called "the multiple") is simply the current price per share divided by the earnings per share. (Price / Earnings = P/E) If you multiply both sides of that equation by Earnings, you get Price = P/E * Earnings.

So if you have P/E = 12 and Earnings = $2.50/share, the price would be 12 * 2.50/share = $30/share. That means a) and b) are both wrong.

It also means that 12 times the change in earnings will tell you the change in price (if the P/E multiple doesn't change). So a 0.20 rise in earnings will raise the stock price by 12 times that amount or $2.40/share. So c) is the correct answer.

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Customers around the world know Pepsi and consider it a primary "go-to" brand if they want a refreshing drink. This positioning
Sedbober [7]

Answer:

B. targeting strategy and marketing mix

Explanation:

In business, Targeting strategy refers to a strategy that a company implemented to sell their product to specific group of consumers.

In pepsi's case, they focus their targeting strategy toward the consumers who want a refreshing drink.

Marketing mix is a marketing strategy that is revolved around  product, price, place, and promotion. Companies could utilzie this 4 factors to create a business model that can make their targeting strategy succesful.

In pepsi's case:

They sold their product in almost every convenience store <u>(place) .</u> Making it easier for consumers who currently crave refreshing drinks. The <u>price </u>of Pepsi's product is very affordable.

<u>They designed and promote their produc</u>t to obtain a reputation as refreshing  a product that can relinquish your thirst.  You can see it in most of their advertising. Most of it consist of people in a hot weather that craves something cold and refreshing.

8 0
3 years ago
(PLEASE HELP ASAP!)
Furkat [3]

       Answer:

All Of The Above

       Explanation:

A cost benefit analysis (CBA) estimates and/or totals up the amount of money a certain place or organization takes up. Based on that sum of money, the CBA decides if the place or organization is useful or needs to be there, or if they are just wasting money. The CBA determines whether to keep the place / organization using opinions and it is subjective, subjective meaning based on or influenced by personal feelings, tastes, or opinions.

The CBA weighs benefits against cost. This means that they take the sum of money that "thing" uses and weighs that against how useful it is, what benefits it has, and how much people use and need it.  These projects may be dams and highways or can be training programs and health care systems. If they take up to much money and are not used, they are taken out.

Mordancy.

5 0
3 years ago
During winter, red foxes hunt small rodents by jumping into thick snow cover. researchers report that a hunting trip lasts on av
Hatshy [7]

In this report, there are three variables being mentioned. These are:

1st variable = 19 minutes

2nd variable = 7 jumps

3rd variable = 79%

 

In this problem, I believe what we are asked to do is to identify the type of variable the 2nd variable is. We are given that the 2nd variable is “7 jumps”.  This means that the 2nd variable is quantitative because it refers to or relating to a measurement of something rather than the quality. We also know that jumps can only take whole numbers, not decimal. Therefore it is also discrete. Hence, the 2nd variable is:

quantitative and discrete

6 0
4 years ago
What is the term used to describe product attributes that attract certain customers and can be used to form the competitive posi
Nikitich [7]

Answer:

What is the term used to describe product attributes that attract certain customers and can be used to form the competitive position of a firm?

Competitive dimensions.

Explanation:

In the business world, there are companies that sell products that are used for the same things. The companies in this types of environments are in competition with each other since they are all fighting over the same resource which is market share. A bigger market share usually translates to more customers and more sales. Bigger sales reflects to a bigger profit margin. For a company to have a bigger market share, there are a number of things that they can do to form the competitive position of their firm. They can do this by using product attributes that attract certain customers, a situation termed competitive dimensions.

The following competitive dimensions can be considered, namely;

1. Quality: companies can focus on the quality of their product by improving the quality of the features above the competition. In this way some customers might consider opting for that product because of its perceived quality. The major features of quality are: reliability, performance, serviceability and value for money.

2. Time: the following form the major components of time, namely; delivery time, manufacturing lead-time and frequency of delivery.

3. Price and cost: these include selling price and the service costs.

3 0
3 years ago
Tom earns $35,000 per year. The income tax rate on incomes below $20,000 is 10 percent. The rate on income between $20,001 and $
Nataliya [291]

Answer:

b. Tom’s marginal income tax rate is 15 percent.

c. The income tax is progressive.

Explanation:

If higher incomes are subjected to higher tax rates, then the income tax is progressive. But if higher incomes are subjected to lower tax rates, then the income tax is regressive.

In this case, we can notice an increase in taxes associated with an increase in income, thus, the income tax is progressive.

Since Tom earns $35,000 per year, his income falls into the $20,001 to $35,000 tax range and his marginal income tax rate is 15 percent.

Alternatives b and c are correct.

4 0
3 years ago
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