Answer:
$5.952
Explanation:
For the computation of expected price of the competitor's stock first we need to find out the P/E ratio of a firm which is shown below:-
P/E ratio of a firm = Stock price ÷ Earning per share
= $14.26 ÷ $1.15
= $12.4
Price of competitor's stock = P/E ratio of a firm × Earning per share
= $12.4 × $0.48
= $5.952
Therefore for computing the expected price of the competitor's stock we simply applied the above formula.
Answer:
C. there is more supply than demand
Explanation:
surplus means extra so there's more in supply than demand
Both the satisfaction of creating new products and the possibility of earning money are INCENTIVES for an entrepreneur.
Answer:
D) is 20% above expectations.
Explanation:
The Augusta Division was supposed to earn a net profit of $1,000,000 (= $2,000,000 - $1,000,000). Since the division's manager and his/her team were able to cut reduce fixed costs to $900,000 and increase contribution margin to $2,100,000 (either by increasing selling price or reducing variable costs), then the division earned a net profit of $1,200,000 (= $2,100,000 - $900,000). This net profit is 20% higher than expected, therefore the manager's (and his/her team's) overall performance was 20% above expectations.
Answer: Not necessarily
Explanation:
Consumer purchase decisions are dependent on multiple factors such as price, income and preference. It could be that the customer purchased the Kia because the price was less than that of the Honda and so she wanted to save and costs and bought the less expensive choice.
It could also mean that the Kia was all she could afford based on her income so she bought that. It could however also mean that the Kia is her preference as compared to the Honda so she chose that instead.
It is therefore not a foregone conclusion that she bought the Kia simply because she preferred it. More information would be needed to reach that conclusion definitively.
