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Pie
3 years ago
6

When analyzing a price-earnings ratio:_________.

Business
1 answer:
frez [133]3 years ago
7 0

Answer:

B. The higher the price-earnings ratio, the more investors are paying for earnings.

Explanation:

When analyzing a price-earnings ratio the higher the price-earnings ratio, the more investors are paying for earnings.

Price-earning ratio:   It is a ratio of stock´s price per share to the company´s earning per share. It is a measure the share price in relative to the total earning by the company per share. Higher price earning ratio shows the higher demand for the share in the market. The investor wants to invest in the company´s share even if they have to pay a higher price per share as they anticipate better earning per share in the future. This ratio also helps in evaluating the performance of the company before investing.

Formula; Price-earning ratio= \frac{Current\ share\ price}{Earning\ per\ share}

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the records of pippins, incorporated, included the following information: net sales $ 1,000,000 gross margin 475,000 interest ex
Dafna11 [192]

The time interest earned ratio of the company was found to be 7.4 times to the expenses.

EBIT = Net Income + Interest Expense + Income tax Expense

= 240,000 + 50,000 + 80,000

= 370,000

Times Interest Earned Ratio:

EBIT / Interest Expense

= 370,000 / 50,000

= 7.4 times

Times interest earned ratio is a good way to measure a company's financial performance because it shows a company's ability to pay interest charges on its debts the ratio is calculated by taking a company's net income before interest and taxes and dividing it by the company's interest expense.

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7 0
1 year ago
The top managers of Promedium Inc. are creating a master budget for the company. They require a statement of the budget goals fr
Anettt [7]

Answer:

The correct answer is budget slack.

Explanation:

Budget slack occurs in a company when one or more people with budgetary responsibility create a budget that overestimates expenses and / or underestimates projected income or income.

Intentional budget slack can occur because a manager feels under the weapon to "make their numbers", often in response to previous quarters where revenues fell below projections and, more importantly, did not meet expectations of the owners or shareholders.

4 0
3 years ago
_______________ is a cost-effective way that many companies outsource the production of goods, such as clothing, shoes, and cell
diamong [38]

Answer:

Correct option is (c)

Explanation:

In international market contract manufacturing is when one firm manufactures goods under another firm's label or brand. Under this type of manufacturing, a company seeks another company in a different country to manufacture goods for it. This is done as the it could be costly to manufacture goods in home country in terms of human resources and raw materials.

So, contract manufacturing, also called international outsourcing or international sub-contracting is a cost-effective way of manufacturing goods.

4 0
3 years ago
Even without advertising, consumer tastes change over time due to changes in?
IrinaVladis [17]

Even when there is no advertising, consumer taste can still change over time due to changes in A. age and education.

<h3>What leads to a change in consumer taste?</h3>

The age of a person can influence their consumer taste because people of different ages have different interests.

For instance, a child might like a certain type of video games such as low graphic and uncomplicated gameplay games while an adult would prefer high level video games that need to be played on consoles.

The education of a person can also influence their consumer taste.

For instance, an educated person might want less unhealthy food because they know the effects it has on the body while a less educated person might want that unhealthy food because they don't know that they are killing themselves slowly.

Options include:

  • age and education  
  • the total number of consumers  
  • media influence

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6 0
1 year ago
Using mental math, the approximate tip to leave for a bill of $81. 79, if you tip 15% would be _____. A. $8. 20 b. $10. 30 c. $1
nordsb [41]

The approximate tip for a bill of $81.79 would be $12.30 when the tip is 15% of the bill amount.

<h3>How to calculate tip amount?</h3>

Tip is the extra amount paid over a bill for the services provided by the staff. The tip when calculated as a percentage over the bill, the percentage rate is to be multiplied by the bill amount.

Given:

\rm Bill\:amount = \$81.79\\\\Rate\:of\:tip = 15\%

The amount of tip will be calculated by calculating 15% of the bill amount.

\begin{aligned} \rm Amount \:of \:tip &= \$81.79 \times 15\%\\\\&= \$81.79 \times \dfrac{15}{100}\\\\&= \$12.2685 \end

The approximate value of tip will be $12.30.

Therefore, option c is correct.

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brainly.com/question/2153680

7 0
2 years ago
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