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xxTIMURxx [149]
3 years ago
11

California has an average rainfall of 3 inches for the month of January. This year California had over 12 inches, which is equiv

alent to what percentage increase?
Business
1 answer:
crimeas [40]3 years ago
8 0
Does not belong in high school
12/3 = 4 
we - 1 because 3 inches annually (100% increase would mean 6 inches)
300% increase


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Answer:

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\frac{100}{10}

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Explanation:

Price Earning ratio is calculated using the current market price of share and earnings per share of the company. In the given question there is no relevance of interest rate as this is not the cost of equity.

Price Earning Ratio tells how much earnings are required to meet the cost of 1 share.

Another formula for P/E ratio = 1/Cost of Equity. Since 12% is not cost of equity this formula cannot be used.

Also earnings per share is given assumed it is after interest cost if any.

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The correct question should be:

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