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3 years ago

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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"Sydney has a portfolio with 50 shares of AAA with a current value of $20 per share, a return of 12%, and a beta of 1.30. She al

Nezavi [6.7K]

Answer: 12.72%

Explanation:

Given the following information ;

50 Shares of AAA at $20 and expected returns of 12%

25 Shares of BBB at $60 and expected returns of 10%

75 Shares of CCC at $50 and expected returns of 14%

Total value of the portfolio ;

Total Portfolio Value = ( 50×20 ) + ( 25×60 ) + ( 75×50 )

= 1000 + 1500 + 3750 = $6,250

Weight of each share in the portfolio;

Weight of Stock AAA = ( 50×20 ) / 6250 = 0.16

Weight of Stock BBB = ( 25×60 ) / 6250 = 0.24

Weight of Stock CCC = ( 75×50 ) / 6250 = 0.60

Expected return on portfolio is calculated thus;

Expected Portfolio Return = ( Weight of AAA×Expected Returns ) + ( Weight of BBB×Expected Returns ) + ( Weight of CCC×Expected Returns )

Expected Portfolio Return = ( 0.16×0.12 ) + ( 0.24×0.10 ) + ( 0.60×0.14 )

Expected portfolio return = (0.0192+0.024+0.084) = 0.1272

0.1272 = 12.72%

6 0

3 years ago

Dwight, the general manager of a hotel, knows that one of his housekeeping employees has a serious substance-abuse issue. Dwight

Oksana_A [137]

Answer: relaxed change

Explanation: In simple words, it refers to a situation when a manager knows that he or she is stuck in an unavoidable issue but rather than facing it he or she chooses the second best alternative that involves low risk.

In the given case, Dwight knew that substance abuse with an employee is a serious issue but rather than facing it on his won he decided to put it into his subordinate.

Thus, the given case is an example of relaxed change.

3 0

3 years ago

Valvano Corporation uses a job-order costing system with a single, plantwide, predetermined overhead rate based on machine-hours

alukav5142 [94]

Answer:

The estimated total manufacturing overhead is closest to $550,000

Explanation:

Total manufacturing overhead = variable + fixed overhead absorbed

Fixed overhead absorbed = Overhead absorption rate × machine hour

Overhead absorption rate = Estimated overhead/Estimated machine hours

= $440,000/50,000 machine hours

= 8.8 per machine hour

Absorbed fixed overhead = $8.8 × 50,000= $440,000

Absorbed variable overhead= $2.20 × 50,000= $110000

Total manufacturing overhead = $440,000+ 110000 =$550,000

The estimated total manufacturing overhead is closest to $550,000

3 0

3 years ago

What’s the answer????

ICE Princess25 [194]

Opportunity cost is the value of your second choice, or whatever you give up to get something

Taylor gives up either the video games or the funny videos. So you can choose either one

7 0

3 years ago

One of the workers in Henry's department submitted his two weeks' notice so Henry needs to hire a replacement. The HR department

cupoosta [38]

Answer:

procedure

Explanation:

According to my research on different human resource responsibilities, I can say that based on the information provided within the question there is a procedure that Henry must follow. Like described in the question a Procedure is a set of step by step instructions that must be followed accordingly in order to achieve a certain goal.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

3 0

2 years ago