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
victus00 [196]
3 years ago
10

The following amounts were taken from the financial statements of Plant Company: 2012 2011 Total assets $800,000 $1,000,000 Net

sales 720,000 650,000 Gross profit 352,000 320,000 Net income 150,000 117,000 Weighted average number of common shares outstanding 60,000 90,000 Market price of common stock $67.50 $39 The price-earnings ratio for 2012 is
Business
1 answer:
adell [148]3 years ago
8 0

Answer: 27 times

Explanation:

Market price of common stock = $67.50

Net income = 150,000

Weighted average number of common shares outstanding = 60,000

Value of each shares = 150,000 / 60,000 = $2.5 per share

The price Earnings ratio will then be:

= market price per share / earnings per share

= $67.50 / $2.50

= 27 times

You might be interested in
ABC Industries is a division of a major corporation. Data concerning the most recent year appears below: Sales $ 18,150,000 Net
rosijanka [135]

Answer:

ROI will be 22.94 %

Explanation:

We have given that sales = $18150000

Average operating asset = $4900000

Net income = $1125300

We know that turnover is given as

Turnover =\frac{sales}{average\ operating\ asset}=\frac{18150000}{4900000}=3.70times

Now profit margin is given as

Profit Margin =\frac{net\ operating\ income}{sales}\times 100=\frac{1125300}{18150000}\times 100=6.2 %

Now we know that ROI is given as

ROI = turnover × profit margin

ROI = 3.70 × 6.2%

ROI = 22.94%

3 0
3 years ago
It is the end of the year but not the end of the pay period. How will this affect the balance sheet?
ser-zykov [4K]

Answer:

The correct answer is, <em>Liabilities will be increased</em>.

Explanation:

Though the year has ended however, the payment would still be due to be made. Hence, payables would be reflected in the balance sheet thereby increasing the liabilities.

6 0
3 years ago
Why do political parties create platforms? How are platforms useful to voters?
telo118 [61]
Political parties create platforms in order for them to create methods to resolve various issues in society. These platforms are very useful for voters as it gives them an idea on how it will help them further in various aspects - ranging from resolving violence to the point of equaling their rights.
4 0
4 years ago
Read 2 more answers
real-time Incorporated considers purchase of a new machine that cost $40,000 and requires an increase in net operating working c
Tems11 [23]

Answer: $42,000

Explanation:

The Net investment required is the total amount that a company needs to initiate a project or acquire an asset.

Net investment at time 0 = Cost of machine + increase in net operating capital

= 40,000 + 2,000

= $42,000

4 0
3 years ago
The goal of utility maximization is to allocate your ______ in order to maximize your ______.
inn [45]
<span>The goal of utility maximization is to allocate your resources in order to maximize your satisfaction.
Utility maximization is a concept which is used in the economics which explains that when a person is making a decision to purchase anything, he/she prefer to get the greatest value that is possible but at the least amount of money.
</span>
5 0
3 years ago
Other questions:
  • "...there is quite as much trouble in the reformation of an old constitution as in the establishment of a new one, just as to un
    10·2 answers
  • Family, religion, education, and health care are all considered _____.
    6·1 answer
  • Writers provide details in their descriptions of setting that they think will:
    8·1 answer
  • Making plans for how products that have reached the end of their useful lives will be dealt with is the primary subject of.a. cr
    6·1 answer
  • A manager at Donuts Galore needs to compute the target operating income to determine how many donuts would need to be sold to ea
    15·1 answer
  • Please help??
    11·2 answers
  • The common stock of Buffalo Inc. is currently selling at $113 per share. The directors wish to reduce the share price and increa
    6·1 answer
  • Annual interest rate 4.00%
    8·1 answer
  • What is a business opportunity?
    14·1 answer
  • If the yield curve is downward sloping, what is the yield to maturity on a 30-year treasury bond relative to a 10-year treasury
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!