1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Leya [2.2K]
2 years ago
11

Dearborn Company has earnings per share of $2.80, it paid a dividend of $2.10 per share, and the market price of the company's s

tock is $61 per share. The price/earnings ratio is closest to:
Business
1 answer:
marissa [1.9K]2 years ago
6 0

Answer:

The price/earnings ratio is closest to 21.79

Explanation:

Price / Earning ratio is used to assess the owner`s appraisal of share value. The higher the ratio the more confident that the shareholders have on company's future performance.

Price / Earning ratio = Market price of Share ÷ Earnings per share

                                  = $61 ÷ $2.80

                                  = 21.79

You might be interested in
Transactions that affect earnings do not necessarily affect cash. Identify the effect, if any, that each of the following transa
Jlenok [28]

Answer:

                                                                  Item  cash      Net income  

a  Purchase of Supplies of cash                 -$100                   -

b  Adjusting entry for use of supplies            -                     -$30

c  Made sales on account                               -                   $1,250

                                             Or

   Made sales on account                               -                   $1,297

d Received cash from customer on acct     $850                  -

                                           Or

   Received cash from customer on acct     $865                  -

e  Purchased equipment for cash               -$2,600              -

                                            Or

   Purchased equipment for cash               -$2,528                -

f   Depreciation of building to be recorded      -                  -$650

                                         Or

   Depreciation of building to be recorded       -                 -$610

3 0
3 years ago
When conducting a capital budgeting analysis and attempting to account for effects of exchange rate movements for a foreign proj
mrs_skeptik [129]

Answer:

inflation <u>SHOULD BE</u> included explicitly in the cash flow analysis, and debt payments by the subsidiary <u>SHOULD BE</u> included explicitly in the cash flow analysis.

Explanation:

A capital budgeting analysis is carried out in order to determine how a company should invest their capital assets.

The discounted cash flow method is the primary tools used in this type of analysis. Cash flows from foreign countries that have high inflation rates will be negatively affected since high inflation tends to currency depreciation which in turn leads to lower cash flows in US dollars. The same applies to debt payments made by the subsidiaries since they also reduce net cash flows. Lower net cash flows result in lower NPV and IRR.

4 0
3 years ago
In the budget constraint framework, when the price of a good rises and demand for the other good decreases, what can you say abo
nignag [31]

Answer:

The increase in demand of the product with the higher price or decrease in demand for the other goods is because the substitution effect is outweighed by the income effect of price increase.

Explanation:

The above explanation in economics refers to Giffen Good. The idea behind this concept Giffen is that if you do not have money and there is an increase in the price of a fundamental product such as bread, it is still impossible to afford other alternatives, hence you will go ahead to buy bread or avoid buying any of the product. Hence, the demand for other product will also decrease in this case. This means that the demand for product with higher price or decrease in other substitute product is due to the fact that the income effect outweighs the substitution effect. Hence people do not have the money to even afford the alternative product.

8 0
3 years ago
Poeple who own operate and take on the financial risk of operating a business are called?​
NARA [144]

Answer:

Entrepreneurs. people who own, operate, and take the risk of a business venture.

6 0
2 years ago
Amy currently volunteers at her local hospital. She would like to one day
Lyrx [107]

Answer:

C

Explanation:

C focuses on health care careers it makes the most sense if she wants to be a doctor.

7 0
2 years ago
Read 2 more answers
Other questions:
  • A bicycle chain is pulled tightly so that mn is a common tangent of the gears?
    13·2 answers
  • Yvette, a manager, decides to offer her support to Jonny, one of her subordinates, on a new project in exchange for a share of t
    7·1 answer
  • One of the appeals of a sole proprietorship is that business expenses are
    9·2 answers
  • On september 1, capitol maintenance company contracted to provide monthly maintenance services for the next nine months at a rat
    6·1 answer
  • A consumer expenditure survey reports the following information on consumer protein spending:201820192020PQPQPQFish$2.001000$2.5
    7·1 answer
  • Your task is to study and examine precisely what the project you are involved with is trying to accomplish, in order to set defi
    13·1 answer
  • An artist buys scrap metal from a local steel mill as a raw material for her sculptures. Last​ year, she purchased $7,000 worth
    7·1 answer
  • Suppose when you are 21 years old, you deposit $1,000 into a bank account that pays annual compound interest, and you do not wit
    7·2 answers
  • An asset used in a four-year project falls in the five-year MACRS class for tax purposes The asset has an acquisition cost of $5
    14·1 answer
  • What's the current yield of an 8.15 percent coupon corporate bond quoted at a price of 94.30?
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!