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valina [46]
4 years ago
7

The Rose Co. has earnings of $1.40 per share. The benchmark PE for the company is 15. What stock price would you consider approp

riate
Business
1 answer:
77julia77 [94]4 years ago
5 0

Answer:

$21

Explanation:

The earning per share of Rose Co. is $1.40

The benchmark PE of the organization is 15

We are required to find which stock price would be most appropriate

Therefore, the stock price can be calculated as follows

Stock price= Benchmark PE×Earning per share

= $1.40×15

= $21

Hence the stock price that would be considered appropriate is $21

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Determining PB Ratio for Companies with Different Returns Assume that the present value of expected ROPI follows a perpetuity wi
-Dominant- [34]

Answer:

Pb R atio:

For company A = 2.375

For company B = 1.5

Explanation:

As per the data given in the question,

ROPI = NDA (RNOA - WACC)

For Company A 100 × (21%-10%)

For Company B 100 × (14%-10%)

Present value of ROPI = (ROPI ÷ (1+WACC)) ÷ [1-(1+g) ÷ (1+WACC)]

For Company A = (11 ÷ (1+0.10)) ÷ [1-(1+0.02) ÷ (1+0.10)]

= $137.50

For Company B = (4 ÷ (1+0.10)) ÷ [1-(1+0.02) ÷ (1+0.10)]

= $50

Market value of equity = NOA + present value of ROPI

= $100 + 137.50 = $237.50(Company A)

= $100 + $50 = $150(Company B)

Pb Ratio = Market value of equity ÷ Book value of equity

For company A = $237.50÷100 = 2.375

For company B = $150÷100 = 1.5

4 0
3 years ago
Utica Company has offered to supply Kingston's entire annual requirements of the part for $53 each. If Kingston buys the part fr
miss Akunina [59]

Answer:

$480,000

Explanation:

Calculation to determine what total relevant costs to make the part internally are

First step is to calculate Relevant cost per unit:

Relevant cost per unit:

Direct materials $6

Direct labor $24

Variable manufacturing overhead $12

Fixed manufacturing overhead ($15 × 0.40) $6

Relevant manufacturing cost $48

Now let determine the Total relevant costs to make the part internally

Total relevant costs to take the part internally=($48 × 10,000)

Total relevant costs to make the part internally = $480,000

Therefore total relevant costs to make the part internally are $480,000

5 0
3 years ago
What is the goal of a transnational corporation?
horrorfan [7]
The primary goal of transnational corporations is to offer their services or products across other culture. These corporations usually provided loans to the poorest countries and invest in then in return. Foreign investments create more jobs which help the economy and the people to improve the quality of their lives.

7 0
4 years ago
parrker Sportswear is an MNE with retail stores around the world. Parker views itself as a collection of relatively independent
Dmitriy789 [7]

Answer:

Multi-domestic

Explanation:

Multi-domestic strategy is a marketing approach in which an organization focuses all its campaigns and advertising mediums to a local market instead of a more global or international market.

A multi-domestic strategy is utilized by various organisation to make their products respond quickly to local needs.

This strategy boost the business rate of competition in the local market, it also tends to increase the amount of their shares in the local market.

A major disadvantage of this strategy is that it requires a lot of money.

3 0
3 years ago
The name given to the fraction of deposits that a bank is legally required to hold in its vault, or as deposits at the fed, is _
r-ruslan [8.4K]
The answer to this question is the "REQUIRED RESERVE RATIO", it is the name given to the fraction of deposits that a bank is legally required to hold in its vault or as deposits at the fed. As per law and based on the checking account deposits, there is required reserve that a bank is legally authorized to hold.
7 0
3 years ago
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