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
Gnoma [55]
3 years ago
11

Vivi Corporation had net income of $401,000 in 2015. The company's Common Stock account balance all year long was $267,000 ($10

par stock). The company does not hold any Treasury Stock. The market price per share as of December 31, 2015, was $33.50. Calculate the price-earnings ratio for 2015.
Business
1 answer:
Leto [7]3 years ago
4 0

Answer:

2.23 is the price earnings ratio.

Explanation:

Firstly we must find the Earnings per share for this problem as it is needed to calculate the price earnings ratio so earnings per share = (Net income)/(Number of shares outstanding).

we are given net income of $401000 then to obtain number of shares outstanding for 2015 are $267000/$10 as we saw the company's common stock account balance all year long was that value of which each share has a par value of $10, then we get outstanding shares which are 26700 now we calculate the earnings per share (EPS) by using the above formula with substituting the above mentioned values :

Earnings Per Share= $401000/26700

                              = $15.01872659

now we will use the Price Earnings Ratio formula which is

Price Earnings Ratio = (current share price)/(earnings per share )

we have been given a current share price of $33.50 now we will use the earnings per share which was calculated above.

Price Earnings Ratio = $33.50/$15.01872659

                                   = 2.230548628 then we round off the answer to two decimal places

Price Earnings Ratio = 2.23

You might be interested in
Cynthia always buys whichever brand of paper towels is on sale, even if it is not the highest quality towel. her paper towel buy
Ann [662]

Single feature model

In this case, the single feature that Cynthia cares about is price. The single feature model works well for simple decisions, but most purchases require more thought. For example, buying a house based solely on price would be a terrible idea because it might be in a bad neighborhood or terrible condition.

6 0
3 years ago
The overhead volume variance relates only to
Fofino [41]
D fixed overhead cost
5 0
3 years ago
Abbe Corporation uses activity-based costing. The company makes two products: Product A and Product B. The annual production and
zepelin [54]

Answer:

Activity Rates are:

1 = $14.55 per activity

2 = $8.69 per activity

3 = $57.47 per activity

Cost per product

A = $32.2525

B= $34.7333

Explanation:

As for the provided information,

There are three activities.

Activity 1 = $17,460 and total = 1,200

Rate of activity = $17,460/1,200 = $14.55 per activity

Activity 2 = $19,987 and total activity = 2,300

Rate of activity = $19,987/2,300 = $8.69 per activity

Activity 3 = $29,884 and total activity = 520

Rate of activity = $29,884/520 = $57.47 per activity.

Costs of each product

Product A = ($14.55 \times 600) + ($8.69 \times 1,700) + ($57.47 \times 40)

= $8,730 + $14,773 + $2,298

= $25,801

Cost per unit = $25,802/800 = $32.2525

Product B = ($14.55 \times 600) + ($8.69 \times 600) + ($57.47 \times 120)

= $8,730 + $5,214 + $6,896

= $20,840

Cost per unit = $20,840/600 = $34.73

7 0
3 years ago
The following annual returns for Stock E are projected over the next year for three possible states of the economy. What is the
mr_godi [17]

The question is incomplete. Here is the complete question:

The following annual returns for Stock E are projected over the next year for three possible states of the economy. What is the stock’s expected return and standard deviation of returns? E(R) = 8.5% ; σ = 22.70%; mean = $7.50; standard deviation = $2.50

State              Prob     E(R)

Boom             10%     40%

Normal           60%     20%

Recession       30%   - 25%

Answer:

The expected return of the stock E(R) is 8.5%.

The standard deviation of the returns is 22.7%

Explanation:

<u>Expected return</u>

The expected return of the stock can be calculated by multiplying the stock's expected return E(R) in each state of economy by the probability of that state.

The expected return E(R) = (0.4 * 0.1)  +  (0.2 * 0.6)  +  (-0.25 * 0.3)

The expected return E(R) = 0.04 + 0.12 -0.075 = 0.085 or 8.5%

<u>Standard Deviation of returns</u>

The standard deviation is a measure of total risk. It measures the volatility of the stock's expected return. The standard deviation (SD) of a stock's return can be calculated by using the following formula:

SD = √(rA - E(R))² * (pA) + (rB - E(R))² * (pB) + ... + (rN - E(R))² * (pN)

Where,

  • rA, rB to rN is the return under event A, B to N.
  • pA, pB to pN is the probability of these events to occur
  • E(R) is the expected return of the stock

Here, the events are the state of economy.

So, SD = √(0.4 - 0.085)² * (0.1) + (0.2 - 0.085)² * (0.6) + (-0.25 - 0.085)² * (0.3)

SD = 0.22699 or 22.699% rounded off to 22.70%

7 0
3 years ago
Which of the following statements about a strong-culture company is false?
klemol [59]

Answer:

A. Decisive leadership on the part of top executives, an industry-leading market share, and strict enforcement of long-standing company policies are all important traits of a strong culture

Explanation:

Option A is the correct answer to this question.

The company's culture are the beliefs that it holds which influences every area of a business. When starting a business or running an existing one, you company's culture that is essential to the overall success and growth of your company. Strong company cultures are result oriented

4 0
3 years ago
Other questions:
  • What can you do to help make your credit score strong?
    12·1 answer
  • An article in the New Yorker magazine states, "the main burden of trade-related job losses and wage declines has fallen on middl
    8·1 answer
  • . An externality is: A. the costs that parties incur in the process of agreeing and following through on a bargain. B. the uncom
    15·1 answer
  • What does the word "Friend" mean?
    5·2 answers
  • ____________________ was a major reason why the United States changed more towards a mixed market economy.
    11·1 answer
  • During the year just ended, Shering Distributors, Inc., had pretax earnings from operations of $490,000. In addition, during the
    5·1 answer
  • In 2018, Borland Semiconductors entered into the transactions described below. In 2015, Borland had issued 180 million shares of
    5·1 answer
  • Beige Corporation, a C corporation, purchases a warehouse on August 1, 2004, for $1,000,000. Straight-line depreciation is taken
    11·1 answer
  • The cost to manufacture shoes decreases. Which statement describes the expected outcome?
    11·1 answer
  • If a company receives $12,000 from a stockholder, the effect on the accounting equation would be?
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!