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Masteriza [31]
3 years ago
6

A corporation has $7,000,000 in income after paying preferred dividends of $500,000. The company has 1,000,000 shares of common

stock outstanding. The market price of the stock is $56. What is the price-earnings ratio
Business
1 answer:
Finger [1]3 years ago
8 0

Answer:

Price earning ratio= 8  times

Explanation:

Price earning ratio = Price per share /Earnings per share

Price per share = 56, EPS =?

Price per share =56, EPS = Total earnings available to ordinary shareholders/Number of shares

7,000,000/1,000,000= $7  per share

Price earning ratio = 56/7= 8  times

Price earning ratio= 8  times

                         

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Scarcity refers to the gap between limited resources and theoretically limitless wants. Scarcity affects producers because they have to make a choice on how to best use their limited resources. On the other hand, it affects consumers because they have to make a choice on what services or goods to choose. 
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5. Elmofud, Inc. is considering splitting its stock. The stock is currently priced at $90 per share. You own 100 shares of the s
UkoKoshka [18]

Answer:

total value be in the stock $9,000

Explanation:

given data

currently priced = $90 per share

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solution

we get here first Value of Position that is express as

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and

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and

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so

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8 0
3 years ago
What are three reasons to study economics?
klemol [59]
Knowledge , pride and wisdom
3 0
2 years ago
You own a portfolio equally invested in a risk-free asset and two stocks. If one of the stocks has a beta of 1.27 and the total
andriy [413]

Answer:

the beta be for the other stock in your portfolio is 1.73

Explanation:

The computation of the beta be for the other stock in your portfolio is shown below:

Given that

risk free asset contains the beta of 0

And,  

market beta = 1

Now  

1 = 1 ÷ 3 × 0 + 1 ÷ 3 × 1.27 + 1 ÷ 3 × beta

The beta of other stock = 1.73

hence, the beta be for the other stock in your portfolio is 1.73

Here we assume that one-third should be invested in all 3 things each

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2 years ago
According to the rational choice decision-making process, the first step in solving this problem would be:
ser-zykov [4K]

Answer:

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