Answer:
The expected share price=$20.07
Explanation:
Step 1: Calculate the price/earnings to growth ratio(PEG) ;
PEG ratio=(Price/EPS)/EPS growth
where;
Price=Price per share
EPS=earnings per share=share price
EPS growth=share price growth
In our case;
Price per share=$4.22
Share price=$48.83
Share price growth rate=3.1%=
Replacing;
PEG ratio=(4.22/48.83)/3.1
PEG ratio=0.0279
Step 2: Calculate share price
PEG ratio=(Price per share/share price)/share price growth
where;
PEG ratio=0.0279
Price per share=$2.63
Share price=x
share price growth rate=4.7%
Replacing;
0.0279=(2.63/x)/4.7=2.63/4.7 x
4.7 x×0.0279=2.63
x=2.63/(4.7×0.0279)
x=20.07
The expected share price=$20.07
Answer:
Option (B) is correct.
Explanation:
Contribution per unit
:
= Selling Price per unit – Variable costs per unit
= $35 - $21
= $14 per unit
Contribution margin ratio
:
= Contribution ÷ Sales
= $14 ÷ $35
= 0.40 or 40%
So, Break even point in Sales dollars
:
= Fixed costs ÷ Contribution margin ratio
= $78,000 ÷ 40%
= $ 195,000
Using the DMP Model the factor that determines a consumer’s decision to search for work are:
- The labor force, titled as Q.
- The payoff gotten from home production.
- The payoff gotten as a result of searching for market work.
<h3> What factor determines a firm’s decision to post a vacancy? </h3>
They are:
1. The cost that one gets from posting a vacancy, k
2. The wage rate which the suppose firm would pay, w
3. The outcome or the output that worker will make, z, etc.
Note that in DMP model, if a worker and firm are matched, the factor that determines the wage paid to the worker is the equation of :
w = a(z-b) + b,
Where a(z-b) = Share the worker will get from the total share as a result of the bargain, based on the worker's bargaining power.
Learn more about DMP Model from
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