Because then there will be a limited amount of supplies and resources on Earth, so the value will be rare and expensive.
Answer:
(A). People may expect earnings to fall in the future, perhaps because the firm will be faced with increased competition.
Explanation:
Price Earnings ratio of a company represents market price per share of a company's stock in relation to it's earnings per share.
Price Earnings ratio(PER) is given by the following formula:
PER = 
A lower P/E Ratio indicates that a company's market price of a share is lower relative to it's earnings. This means the company's stock is undervalued.
It can also mean that the company's earnings have increased which in turn has increased it's earnings per share.
Investors in general expect lower earnings in future for the stock of a company with low P/E Ratio.
Answer:
$77.34
Explanation:
The computation of the current stock price is shown below:
But before that following calculations need to be done
EPS for year 2 = Dividend at year 2 ÷ Payout Ratio
= $1.96 ÷ 0.40
= $4.90
Now the price at year 2 is
Price at year 2 ÷ EPS at year 2 = PE ratio
Price at year 2 ÷ $4.90 = 18.95
Price at year 2 = $92.855
Now finally the current stock price is
= Dividend at year 1 ÷ (1 + rate of interest) + Dividend at year 2 ÷ (1 + rate of interest)^2 + Price at year 2 ÷ (1 + rate of interest)^2
= $1.81 ÷ 1.119 + $1.96 ÷ 1.119^2 + $92.855 ÷ 1.119^2
= $77.34
Answer:
Effect on income= 7,500 increase
Explanation:
Giving the following information:
Variable costs are $0.50 per unit.
Current monthly sales are 183,000 units.
Heaven Company has contacted Marx Company about purchasing 15,000 units at $1.00 each.
Because it is a special offer and there is unused capacity, we will not take into account the fixed costs.
Sales= 15,000*1= 15,000
Variable cost= 15,000*0.5= (7,500)
Effect on income= 7,500 increase
Answer:
SWOT ANALYSIS
Explanation:
A SWOT analysis looks at internal and external factors that can affect a business.
In SWOT analysis Internal factors are strengths and weaknesses. External factors are the threats and opportunities. An example of an external factor is changes in technology or a new government policy.
The Strategic planning process implored by Raney Pharmaceuticals Corp should help them:
1. respond to new trends
Since more people are becoming interested in natural alternatives to traditional chemical pharmaceuticals and the trend is expected to continue over the next decade Raney Pharmaceuticals Corp could take advantage of this opportunity by diversifying to produce natural alternative medication.
2. Discover threats (external factor)
Since New regulations have been passed limiting their ability to sell certain formulations over the counter, it would likely reduce their sales.
3. Overcome Weakness
The company has inadequate financial resources to invest in their operations and thus would need to get new investors.
Also, since they have fallen behind in research and development in the last few years adequate measures should be taken to improve their research and development.
