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Kipish [7]
3 years ago
5

Jupiter Explorers has $7,800 in sales. The profit margin is 4 percent. There are 6,100 shares of stock outstanding, with a price

of $1.80 per share. What is the company's price–earnings ratio?
Business
1 answer:
Law Incorporation [45]3 years ago
3 0

Answer:

The company's price–earnings ratio is 36.

Explanation:

Price earning ratio is the ratio of market value of share to earning per share. It shows that how much investors are willing to pay for each dollar of earning of the company.

Profit margin = Net income / sales

0.04 = Net Income / $7800

Net Income = $7800 x 0.04 = $312

Earning Per share = Net Income / number of outstanding shares

Earning Per share = $312 / 6,100 = $0.05

Price earning ratio = Market price of share / Earning per share

Price earning ratio = $1.8 / $0.05 = 36

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iVinArrow [24]

Answer:

Coupon rate = 5.8%

Explanation:

The price of a bond is the present value (PV)  of the future cash flows discounted at its yield.

So we will need to work back to ascertain the coupon rate

Step 1

<em>Calculate the PV of redemption value and PV of interest payments</em>

<em>PV of Redemption </em>

= 1.067^(-5) × 1000

=723.06

<em>PV of the annual interest rate</em>

= price of the bond - PV of redemption

= $964- 723.06

= 240.934

Step 2

<em>Calculate the interest payment</em>

Interest payment = PV of redemption value / annuity factor

Annuity factor =( 1 -(1+r)^(-n) )/r

<em>Annuity factor at 6.7% for 5 years</em>

Factor =( 1-1.067^(-5) )/0.067

          = 4.1333

Interest payment =  <em>PV of the annual interest rate</em> / Annuity factor

Interest payment=

=240.93/4.1333

=58.290

Step 3

<em>Calculate the coupon rate</em>

Coupon rate = interest payment/ par value

Coupon rate = (58.290/1000) × 100

= 5.8%

Coupon rate = 5.8%

4 0
3 years ago
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Explanation:

The statement that describes a strategy that Alex could use to deliver a lighter speech will be for Alex to tell a story about his brother that causes his friends and family in the audience to laugh.

It's but proper for Alex to tell an embarrassing joke about his brother. Also, preparing a long statement to be delivered when it's time to toast can make the event boring.

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Her job was to show suffering

Explanation:

This is the answer for edg2020

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