A new business owner would want to know the competition’s strengths for all the following reasons EXCEPT

Consider Pacific Energy Company and Atlantic Energy, Inc., both of which reported earnings of $961,000. Without new projects, bo

lys-0071 [83]

Answer:

A. 7.14

B. 7.96

C.8.71

Explanation:

A. Calculation for the the current PE ratio for each company

First step is to find the market value of the stock using this formula

Market value of stock=Earnings/Return percentage

Let plug in the formula

Market value of stock =$961,000/0.14

Market value of stock =6,864,285

Last step is to find the current PE ratio for each company using this formula

Current PE ratio=Market value of stock/Earnings

Let plug in the formula

Current PE ratio=6,864,285/$961,000

Current PE ratio=7.14

Therefore the Current PE ratio is 7.14

B. Calculation for the new PE ratio of the company

First step is to find the market value of the stock using this formula

Market value of stock =(Earnings+Additional earnings) /Return percentage

Let plug in the formula

Market value of stock =($961,000+$111,000) /0.14

Market value of stock=$1,072,000/0.14

Market value of stock=7,657,142

Last step is to find the new PE ratio of the company using this formula

New PE ratio=Market value of stock/Earnings

Let plug in the formula

New PE ratio=7,657,142/$961,000

New PE ratio=7.96

Therefore the New PE ratio is 7.96

C.Calculation for the new PE ratio of the firm

First step is to find the market value of the stock using this formula

Market value of stock =(Earnings+Increase in earnings) /Return percentage

Let plug in the formula

Market value of stock =($961,000+$211,000) /0.14

Market value of stock=$1,172,000/0.14

Market value of stock=8,371,428

Last step is to find the new PE ratio of the company using this formula

New PE ratio=Market value of stock/Earnings

Let plug in the formula

New PE ratio=8,371,428/$961,000

New PE ratio=8.71

Therefore the New PE ratio is 8.71

7 0

3 years ago

After-tax net income divided by the average amount invested in a project, is the:______.

AnnyKZ [126]

After-tax net income divided by the average amount invested in a project is the accounting rate of return.

Net Income After Tax (NIAT) is a financial term used to describe a company's profit after all taxes have been paid. Net income after tax represents profit or profit after deducting all expenses from income. Net income is calculated by subtracting all expenses from income.

Net income is usually synonymous with profit as it is the ultimate measure of a company's profitability. Net income is also called net income because it represents the net profit that remains after all expenses and expenses are deducted from the income.

Learn more about net income at

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8 0

2 years ago

You sell one Huge-Packing August 50 call contract and sell one Huge-Packing August 50 put contract. The call premium is $1.25 an

SVETLANKA909090 [29]

Answer:

if the stock price is between $44.25 and $55.75

Explanation:

Given that, the investor net gain on premium from option is $1.25 + $4.5 = $5.75.

Thus, the investor has to buy at $50 and obligation to sell at $50 in August.

Hence, investor paid-off is shown as x, of Hug-Packing in August as below:

Spot price <$50: 5.75 - (50 - x) = x - 44.25

Spot price = $50: $5.75

Spot price > $50 : 5.75 - ( x -50) = 55.75 - x

Thus, the strategy will pay off only when:

(x - 44.25) > 0 and (55.75 - x) <0 or x is between $44.25 and $55.75.

7 0

4 years ago

Better Bottles, Inc., Uses a periodic inventory system and has the following:

STALIN [3.7K]

Answer and Explanation:

1. The computation of the ending inventory and the cost of goods sold using the periodic FIFO method is shown below;

FIFO Ending Inventory 

Description # of Units Cost per Unit Total Cost 

Jan. 20 Purchase 33 $30 $990

Jan. 15 Purchase 11 $22 $242

Total 44 $1,232

 FIFO Cost of goods sold 

Description # of Units Cost per Unit Total Cost 

Jan. 20 Purchase 20 $20 $400

Jan. 15 Purchase 16 $22 $352

Total 36 $752

2. The computation of the ending inventory and the cost of goods sold using the periodic LIFO method is shown below;

 FIFO Ending Inventory 

Description # of Units Cost per Unit Total Cost 

Jan. 20 Purchase 20 $20 $400

Jan. 15 Purchase 24 $22 $528

Total 44 $928

FIFO Cost of goods sold

Description # of Units Cost per Unit Total Cost

Jan. 20 Purchase 33 $30 $990

Jan. 15 Purchase 3 $22 $66

Total 44 $1,056

3. The computation of the cost per unit using the Periodic Weighted Average method is

= Cost of goods sold ÷ Number of units

= $1,984 ÷ 80

= $24.80 per unit

Weighted average Ending inventory

# of Units Cost per Unit Total Cost

44 $24.80 $1,091

Weighted average Cost of goods sold

# of Units Cost per Unit Total Cost

36 $24.80 $893

4. The computation of the completed cost of goods sold by applying the three methods is

Particulars FIFO LIFO Weighted average

Beginning Inventory $400 $400 $400

Add: Purchases $1,584 $1,584 $1,584

Goods Available for Sale $1,984 $1,984 $1,984

Less: Ending Inventory -$1,232 -$928 -$1,091

Cost of Goods Sold $752 $1,056 $893

6 0

3 years ago

Coverage is open peril on the Jewelers Block Floater but there is no coverage for ___________ unless added as an optional covera

hram777 [196]

Answer:

The correct answer is C

Explanation:

Coverage is open peril on the Jewelers Block Floater but there is no coverage for Broken or smashed show windows unless added as an optional coverage.

The show window optional coverage provides theft coverage for articles in a show window if the window is broken or smashed, and different limits apply when the business is open or closed or alarmed or not.

GOOD LUCK

5 0

3 years ago