Answer and Explanation:
The computation is shown below:
The following formula should be used
= P/E ratio × EPS × (1 + growth rate)^n
umber of years
a. The stock price in four years is
= $19.35 × $2.22 × (1 + .06)^4
= $54.23
b. The stock price in four years in the case when the P/E ratio fall to 16
= $16 × $2.22 × (1 + .06)^4
= $44.84
We simply applied the above formula so that the correct price could come
And, the same is to be considered
Answer: Make sure consumers understand the theme behind its repositioning.
Explanation:
When a company undergoes repositioning, the company is trying to change the way it's been viewed by members of the public.This changes in public perception of the company, would also affect the internal structure of the repositioned company.
An example of a company undergoing repositioning is when a company opens up more branches across different locations for their firm.
Advertising makes it possible for the public to be aware of the repositioning activities a company is carrying out.
Answer:
compound journal entry
Explanation:
The Double -entry is a bookkeeping technique where transactions are recorded in two or more accounts. Most transactions will affect two accounts. One of the accounts is debited, and the other one is credited. It is also possible to have both accounts debited or credited.
Some transactions may require more than two entries. These are the transactions that affect more than two accounts. For example, Goods sold on discounts or goods sold partially on credit and partially cash. The journal entries for such transactions are compound entries.
Answer:
A) decrease MPC, increase MPS, and decrease the multiplier so that changes in planned investment will have a smaller impact on equilibrium output.
Explanation:
When you receive money, e.g. get paid by your employer, the first thing you do is pay for your basic necessities which are classified as autonomous spending. Then hopefully you will have some money left which is classified as disposable income. You can do two things with your disposable income, either spend it or save it.
The proportion that you spend is called the marginal propensity to consume (MPC) and the remaining part that you save is called the marginal propensity to save (MPS). If the MPS was 1% in 2007 and increased to 5% in 2009, then the MPC was 0.99 in 2007 and 0.95 in 2009.
The formula to calculate the economic multiplier is 1 / MPS:
- the economic multiplier in 2007 = 1 / 1% = 100
- the economic multiplier in 2009 = 1 / 5% = 20
Answer:
$10,500 per year
Explanation:
The computation of depreciation under SLM is shown below:-
Depreciation under Straight line method = (cash equivalent price of the machinery - Estimated salvage value) ÷ Useful life
= ($110,000 - $5,000) ÷ 10 years
= $10,500 per year
Therefore for computing the depreciation under straight line method we simply applied the above formula.
