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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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Broker Nina and Broker Vesta work for Principal Broker Griffin. Vesta is working with Marlin, who is interested in purchasing a

Kay [80]

Answer:

B) Single agency.

Explanation:

In real estate, a single agency relationship means that the broker can only represent one of the parties involved in the transaction, either the buyer or the seller, but he/she cannot represent both parties. Most broker-client relationships are single agencies, since that way the broker should pursuit his/her client's best interest.

In a dual agency relationship, the broker represents both he seller and the buyer.

8 0

3 years ago

The balance in retained earnings on December 31, 2017, was $1435000 and on December 31, 2018, it was $1160000. Net income for 20

Inessa [10]

Answer:

b. $556,000.

Explanation:

Retained Earning is an account where all the earnings of the company accumulate and dividend is also paid from this account because it represents the amount the earning associated with the stockholders of the company.

December 31, 2018 Balance of Retained Earning = December 31, 2017 Balance of Retained Earning + Income for the year - Dividend Paid / Declared during the year.

$1,164,000 = $1,440,000 + $1,000,000 - Dividend Paid / Declared during the year.

$1,164,000 = $2,440,000 - Dividend Paid / Declared during the year.

Dividend Paid / Declared during the year = $2,440,000 - $1,164,000

Dividend Paid / Declared during the year = $1,276,000

Stock Dividend Paid - $500,000 + $220,000 = $720,000

Cash Dividend Paid = $1,276,000 - $720,000 = $556,000

6 0

3 years ago

If your income is $40,000 and your income tax liability is $5,000, your marginal tax rate is a. 8 percent. b. 12.5 percent. c. 2

Dmitry_Shevchenko [17]

If your income is $40,000 and your income tax liability is $5,000, your marginal tax rate is: b. 12.5 percent.

Using this formula

Marginal tax rat=Tax payable/Taxable income×100

Where:

Tax payable=$5,000

Taxable income=$40,000

Let plug in the formula

Marginal tax rate=$5,000/$40,000×100

Marginal tax rate=12.5%

Inconclusion if your income is $40,000 and your income tax liability is $5,000, your marginal tax rate is: b. 12.5 percent.

Learn more here:brainly.com/question/18488309

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3 years ago

Which concurrent testing method helps calculate the visibility of an outdoor advertisement?

umka2103 [35]

I think it would be a

6 0

3 years ago

Diane Manufacturing Company is considering investing $600,000 in new equipment with an estimated useful life of 10 years and no

agasfer [191]

Answer:

Annual estimated net income is $360,00.

Annual estimated net cash inflow is $216,000.

Explanation:

1. Determine the annual estimated net income

Annual estimated net income = Annual cash inflows - Annual cash outflow

Annual estimated net income = $600,000 - $240,000 = $360,00

2. Determine the annual estimated net cash inflow

Annual Tax = Annual estimated net income × Tax rate

Annual Tax = $360,00 × 40% = $144,000.

Annual estimated net cash inflow = Annual estimated net income - Annual Tax

Annual estimated net cash inflow = $360,00 - $144,000 = $216,000.

Note that depreciation is not considered in the calculation because depreciation not a cash expense.

8 0

3 years ago

Read 2 more answers