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
user100 [1]
3 years ago
14

Last year, Rec Room Sports reported earnings per share of $9.10 when its stock price was $282.10. This year, its earnings increa

sed by 20 percent. If the P/E ratio remains constant, what is likely to be the price of the Stock? (Round your answer to 2 decimal places.)
Business
1 answer:
svetlana [45]3 years ago
6 0

Answer:

The correct answer is "$338.52".

Explanation:

The given values are:

Market price,

= $282.10

Earning per share,

= $9.10

Earning increased,

= 20%

As we know,

⇒  PE \ ratio=\frac{Market \ price}{Earning \ per \ share}

On substituting the given values, we get

⇒                  =\frac{282.10}{9.10}

⇒                  =31

Current year earnings,

=  9.10\times 120 \ percent

=  10.92 \ per \ share

Thus,

⇒ 31=\frac{Market \ price}{10.92}

⇒ Market \ price = 31\times 10.92

⇒                        =338.52 ($)

You might be interested in
How much money does the founder of Google make a year?
ElenaW [278]
There are actually two makers, and they both agreed to a one dollar salary a year.
8 0
3 years ago
The _____ is a more specific goal that unifies company-wide efforts, stretches and challenges the organization, and possesses a
Rus_ich [418]

Answer:

The correct answer is strategic objective.

Explanation:

The strategic objectives are the goals that a company proposes in a term greater than one year to achieve a certain objective according to its business vision. It also includes strategies to reach that goal. Here are some examples of strategic objectives.

The strategic objectives will be based on the vision or idea that is born with the company, determining its mission and values, in addition to conditioning the actions that will be carried out in order to achieve them.

5 0
3 years ago
Suppose that the Bureau of Labor Statistics predicts that the number of jobs for dental hygienists will grow faster than most oc
Tom [10]

Answer:

frictional unemployment created by sectoral shifts.

Explanation:

This unemployment is generated because the information between vacancies for the labor force is imperfect. People study and prepare to be dental hygienists or bookbinders without information for the total amount of vacancies that will occur. This frictional unemployment will decrease once the labor force adjust for the demand changes in the jobs. Because the shortage, the salaries for dental hygienists will increase and more people will start studies for dental hygienists. The opposite will occur with the bookbinders job, the decrease in the demand will lower the wages and less people will dive into.

5 0
3 years ago
You consider buying a share of stock at a price of $25. The stock is expected to pay a dividend of $1 next year, and your adviso
nikklg [1K]

Answer:

5%

Explanation:

stock's Alpha = R - Rf - beta (Rm - Rf)

  • R represents the stock's return = $6/$25 = 24%
  • Rf = 6%
  • Beta = 1.3
  • Rm = 16%

Alpha = 0.24 - 0.06 - 1.3 (0.1) = 0.24 - 0.06 - 0.13 = 0.24 - 0.19 = 0.05 = 5%

A stock's Alpha is basically the excess return that the stock yields compared to an specific benchmark, e.g. S&P 500, Dow Jones.

4 0
3 years ago
During the past month, Jennifer Johnson had income of $3,500. During the month, her net worth declined by $300. If no other fina
Fiesta28 [93]
I think Jennifer’s payment for the month is 3,800
7 0
3 years ago
Other questions:
  • In her work as an accountant, Sandra Garcia recognizes that for every transaction that affects an asset, an equal transaction mu
    9·1 answer
  • ________ are consumer products for which a consumer either has little awareness or interest until a need arises. these products
    10·1 answer
  • When scientists use one of their five senses to gather information, they are?
    6·1 answer
  • PLEASE HELP ASAP! Will give BRAINLIEST! Please answer correctly!<br><br> No guessing!
    7·1 answer
  • Define logistics management. Click the answer you think is right. It is the management of the movement of materials and informat
    13·1 answer
  • Newton Inc. uses a calendar year for financial reporting. The company is authorized to issue 9,053,000 shares of $10 par common
    15·1 answer
  • On June 30, year 8, Adonis Co. had outstanding 4%, $4,000,000 face value bonds, originally issued at 98, maturing on June 30, ye
    5·1 answer
  • _____________ is the act of breaking into a computer to steal information.
    9·2 answers
  • A(n) ________ is an organizational change that involves rethinking the nature of the business and the nature of the organization
    15·1 answer
  • question 5 you're anticipating audience questions, especially one asking how you were able to connect the campaign with the resu
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!