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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

You might be interested in
Thyme, Inc. owns 16,000 of Sage Co.'s 20,000 outstanding common shares. The carrying value of Sage's equity is $500,000. Sage su
DedPeter [7]

Answer:

The total non controlling interest after the additional shares are issued is equal to $252,000.

Explanation:

Before the issue Sage co's had 20,000 shares with total equity value of $500,000. After the issue of 5000 shares worth $200,000, the total number of shares and equity would be -

Total number of shares = 25,000 ( 20,0000 + 5000 )

Total equity value          = $700,000

Now Thyme inc owns 16,000 number of shares , which means that minority holds 9000 number of shares . Now the price per share would be =

       TOTAL EQUITY / NUMBER OF SHARES

         $700,000 / 25,000

=        $28

NON CONTROLLING INTEREST = Minority shares x Price per shares

                                                      = 9000 x $28

                                                      = $252,000

8 0
3 years ago
A worker received a $10,000 bonus and decided to split it among three different accounts. He placed part in a savings account pa
kotykmax [81]

Answer:

so savings = $2200

bonds = $4400

and mutual fund = $3400

Explanation:

given data

received bonus = $10,000

savings account paying = 4.5% per year

bonds paying = 5%

mutual fund that returned = 4%

income from these investments = $455

to find out

How much did the worker place in the government bonds

solution

we consider amount invested for 4.5 % is = x

and hen his investment in bonds is = 2x  for 5%

and rest is  10000- x  - 2x

that is = (10000- 3x ) for 4%

so

interest equation will be here

0.045 x + 0.05 (2x) + 0.04 (10000-3x) = 455

solve we get

x = 2200

so savings = $2200

bonds = $4400

and mutual fund = $3400

4 0
3 years ago
According to the theory of comparative advantage, potential world production is greater with unrestricted free trade than it is
dimaraw [331]

Answer:

The answer is true

Explanation:

The law of comparative advantage describes how, under free trade, an agent will produce more of and consume less of a good for which they have a comparative advantage.

8 0
2 years ago
Fly-By-Night Insurance Company had much larger losses than forecast. The company did not charge adequate premiums nor did the co
Reika [66]

Answer: (A) Guaranty fund

Explanation:

 According to the given question, the Guaranty fund is one of the type of fund that basically helps in paying the various types of unpaid claims.

This type of funds are basically covering the beneficiaries of the insurance organization in which the insurer are basically helps in selling the various types of products and the services in the market.

 The guaranty funds is typically used by the administrator for the purpose of protecting the policyholder in the insurance firm.

Therefore, Option (A) is correct answer.    

7 0
3 years ago
Demand for a product is 500 units per month. The company incurs a fixed order placement, transportation, and receiving cost of 4
9966 [12]

Answer:

Economic Order Quantity is the level of inventory that minimizes the total inventory holding costs and ordering costs. It is one of the oldest classical production scheduling models. Economic order quantity refers to that number (quantity) ordered in a single purchase so that the accumulated costs of ordering and carrying costs are at the minimum level. In other words, the quantity that is ordered at one time should be so, which will minimize the total of. Cost of placing orders and receiving the goods, and Cost of storing the goods as well as interest on the capital invested.

economic order quantity (EOQ)

3 0
2 years ago
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