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rodikova [14]
3 years ago
15

Last year, Big W Company reported earnings per share of $2.70 when its stock was selling for $40.50. If its earnings this year i

ncrease by 10% and the P/E ratio remains constant, what will be the price of its stock?
Business
1 answer:
mrs_skeptik [129]3 years ago
5 0

Answer: $‭44.55‬

Explanation:

P/E ratio last year = Market price / Earnings per share

= 40.50/2.70

= 15

PE ratio remains constant.

Earnings increase by 10% = 2.70 * 1.10 = $‭2.97‬

15 = Market Price / 2.97

Market Price = 15 * 2.97

= $‭44.55‬

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What are some things to look for when choosing a credit card? what does the video suggest about credit cards?
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Paulina Lesky is 27 years old and has accumulated $7,500 in her self-directed defined contribution pension plan. Each year she c
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Answer:

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Explanation:

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Total annual contribution = 2000+2000 = 4000

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An cumulative sum due to an annuity= P\times \frac{(((1+i)^n)-1)}{i}

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