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Leni [432]
3 years ago
5

The following amounts were taken from the financial statements of Ando Company: 2017 2016 Total assets $800,000 $1,000,000 Net s

ales 720,000 650,000 Gross profit 352,000 320,000 Net income 108,000 117,000 Weighted average number of common shares outstanding 90,000 90,000 Market price of common stock $42 $39 The price-earnings ratio for 2017 is
Business
1 answer:
aleksandr82 [10.1K]3 years ago
6 0

Answer:

35 times

Explanation:

The price-earnings ratio is the financial ratio that compares the market price of a share with its earnings in order to determine whether the share gives earnings that makes it a good buy.

Price-earnings ratio=market price per share/earnings per share

market price per share for 2017 is $42

earnings per share=net income-dividends/average common stock outstanding

net income is $108,000

dividends is nil

average number of common stock is 90,000

earnings per share=$108,000-$0/90,000=$1.2

price earnings ratio=$42/$1.2=35 times

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The publisher of an economics textbook finds that, when the book's price is lowered from $70 to $60, sales rise from 10,000 to 1
ankoles [38]

Answer:

Price elasticity of demand = 2.6

Explanation:

Given:

Old price (P0) = $70

New price (P1) = $60

Old sales (Q0) = 10,000 units

New sales (Q1) = 15,000 units

Computation of Price elasticity of demand(e):

Midpoint method

e=\frac{\frac{Q1-Q0}{\frac{Q1+Q0}{2} } }{\frac{P1-P0}{\frac{P1+P0}{2} } }

By putting the value:

e=\frac{\frac{10,000-15,000}{\frac{10,000+15,000}{2} } }{\frac{60-70}{\frac{60+70}{2} } }\\e=\frac{\frac{-5,000}{\frac{25,000}{2} } }{\frac{-10}{\frac{130}{2} } }\\

e=\frac{\frac{-5,000}{12,500} }{\frac{-10}{65} }

e =  2.6

7 0
3 years ago
Which of the following is NOT a role the Human Resources department plays when helping orient employees?
raketka [301]

Answer:

Analyzing new employee morale.

Explanation:

Employee Orientation is the day when an employee joins the company; his/her first day at work. The role that an HR plays to help orient employees is to ensure that the employee feels welcomed and comfortable.

HR would orient employee by introducing them to their co-workers, assist them in their adjustment phase, and also help them fill paperwork.

HR also introduces the new employees to the policies of company, expectations, also briefed about their work.

<u>The role that's not performed by an HR is that they do not analyze morale of new employee, instead they boost their morale and help them to get comfortable</u>.

Thus the correct answer is the last option.

4 0
3 years ago
You supply a good at a price of $5. You also earn a profit at this price. This means that your marginal cost could be _____.
Fed [463]
<span>You supply a good at a price of $5. You also earn a profit at this price. This means that your marginal cost could be less than $5.
Hope it helps.
</span>
3 0
3 years ago
The following information is from Amos Company for the year ended December 31, 2019.
Juliette [100K]

Answer:

Explanation:

The preparation of the statement of retained earnings for Amos Company is shown below:

Retained earnings at December 31, 2018 (before discovery of error) $858,000

Less: Depreciation expense two years ago -$45,600

Add: net income $209,000

Less: Cash dividends declared and paid during the year -$11,000

Retained earnings at December 31, 2019             $1,010,400

3 0
3 years ago
Choose the statement that is incorrect.
MAVERICK [17]

Answer:

B. In the long​ run, a change in the nominal exchange rate brings an equivalent change in the real exchange rate.

Explanation:

As we know that in the short run there is a decline in the nominal exchange that results in a decrease of real exchange rate due to which there is a reduction of the import and the export is risen.

But in the case of the long run, if there is a change in the nominal exchange rate so the real exchange rate would remain the same

This results that if there is a change in the nominal exchange rate so it would not bring the equal change in the real exchange rate

Hence, option B is incorrect

5 0
3 years ago
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