1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
DENIUS [597]
3 years ago
10

Given the following information, determine the price-earnings ratio. Market price of common stock at year-end $55.00 Earnings pe

r share 8.00 Dividends per share 4.00 a. 6.9 b. 13.75 c. 6.9% d. 14.5%
Business
1 answer:
dlinn [17]3 years ago
5 0

Answer:

a. 6.9

Explanation:

\frac{Market \: Price}{EPS}  = $Price-Earnings Ratio

55/8  = 6.875 = 6.9

This means purchase a share of this company is paying 6.9 times his annual earnings.

<u>It could be interpreted both ways:</u>

  • if this is high, the market can expect to grow their earnings soon or...the share is overstated and will not increase his value shortly.

  • If this is considered low, then the market expects its earnings to decrease or ... the share is understated and will increase their valuation soon

You might be interested in
Explain what Social added value is
Schach [20]

Answer:

what a question I didn't understand this question????? please send nicely

6 0
3 years ago
Read 2 more answers
When faced with a conflict, police officers should?
mihalych1998 [28]
<span>Policy officers should try to de-escalate the situation to avoid violence whenever possible. Therefore, officers should avoid aggressive approaches or intimidation and should instead be non-confrontations. Physical force should be reserved as an absolute last resort.</span>
4 0
3 years ago
Read 2 more answers
Quantitative Problem 2: Carlysle Corporation has perpetual preferred stock outstanding that pays a constant annual dividend of $
sergij07 [2.7K]

Answer:

$27.14

Explanation:

Calculation for the price of the firm's perpetual preferred stock

Using this formula

Price of the firm perpetual preferred stock = Annual dividend / Required return

Where,

Annual dividend =$1.90

Required return=7% or 0.07

Let plug in the formula

Price of the firm perpetual preferred stock = $1.90 / 0.07

Price of the firm perpetual preferred stock=$27.14

Therefore the Price of the firm perpetual preferred stock will be $27.14

4 0
3 years ago
As a result of a thorough physical inventory, Railway Company determined that it had inventory worth $180,000 at December 31. Th
fgiga [73]

Answer:

The answer is: $215,000

Explanation:

Railway Company should include the goods worth $35,000 that Rogers Consignment store has. Once this amount is included, the total inventory for Railway Company should be $215,000 ($180,000 + $35,000).

Merchandise purchased and shipped as FOB destination, belongs to the seller until it has been properly delivered to the buyer. It will increase the inventory once it arrives on January 3.

7 0
3 years ago
Economic growth refers to a steady increase in the production of goods and services in an economic system.
MatroZZZ [7]

Answer:

<em>Economic growth refers to a steady increase in the production of goods and services in an economic system.</em><em> </em><em><u>True</u></em>

3 0
2 years ago
Other questions:
  • During a recession, the best strategy of the Federal Reserve is to buy bonds sell government bonds, to make low risk sound asset
    7·1 answer
  • Any marketing method that directly links manufacturers or intermediaries with the ultimate consumer could be classified as:
    12·1 answer
  • When energia, a soft drink manufacturer, seeks to use viral ads on the internet to introduce its new beverage to the consumers e
    10·1 answer
  • If the price elasticity of demand for used cars priced between $4,000 and $6,000 is -0.9 (using the mid-point method), what will
    11·1 answer
  • Prior to recording adjusting entries, the Office Supplies account had a $372 debit balance. A physical count of the supplies sho
    15·1 answer
  • Which of the following is not an assumption associated with the definition of a production function?
    6·1 answer
  • If a binding price ceiling is imposed on the baby formula market, then a. the quantity of baby formula demanded will increase. b
    7·1 answer
  • Which of the following agencies can request that more money be printed? A. The Central Bank B. The Federal Reserve C. The Federa
    14·2 answers
  • Giving away 100 for fun
    14·2 answers
  • The American system of democracy would be in serious trouble without ______. a. print media b. a monopoly on news media c. the r
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!