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Tema [17]
3 years ago
12

Botox Facial Care had earnings after taxes of $310,000 in 20X1 with 200,000 shares of stock outstanding. The stock price was $53

.20. In 20X2, earnings after taxes increased to $392,000 with the same 200,000 shares outstanding. The stock price was $65.00.
a. Compute earnings per share and the P/E ratio for 20X1. (The P/E ratio equals the stock price divided by earnings per share.) (Do not round intermediate calculations. Round your final answers to 2 decimal places.)b. Compute earnings per share and the P/E ratio for 20X2. (Do not round intermediate calculations. Round your final answers to 2 decimal places.)c. Why did the P/E ratio change? (Do not round intemediate calculations. Input your answers as percents rounded to 2 decimal places.)
Business
1 answer:
lesantik [10]3 years ago
7 0

Answer:

(a) $1.55; 32.32

(b) $1.96; 33.16

Explanation:

a) EPS (20X1) = $310,000 ÷ 200,000

                      = $1.55

P/E ratio (20X1) = Price ÷ EPS

                          = $53.20 ÷ $1.55

                          = 32.32

b) EPS (20X2) = $392,000 ÷ 200,000

                       = $1.96

P/E ratio (20X2) = Price ÷ EPS

                           = $65 ÷ $1.96

                           = 33.16

c) The stock price increased by 22.18% while EPS only increased 26.45%.

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Answer: Structured compensation program

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In the given case, Jamie gets promotion at every stage by passing a certain test. Thus, we can conclude that the company is performing structured program.

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3 years ago
Blowing Sand Company has just received a one-time offer to purchase 10,000 units of its Gusty model for a price of $22 each. The
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Answer:

a. Accept the order

b. Increase in short-term profit of $50,000

Explanation:

<em>Note : Blowing Sand has "enough excess capacity" this means that fixed cost will be the same in the range or they will be ocurred whether or not the special order is accepted.</em>

Therefore fixed costs are Irrelevant for this decision.

<u>Incremental Costs and Revenues - accept the special order</u>

Sales ( 10,000 units × $22 each)                               $220,000

<em>Less</em> Variable Costs ( 10,000 units × $17each)         ($170,000)

Net Income                                                                  $50,000

The special order will result in an increase in short term profit of $50,000. Therefore, Blowing Sand Company should accept the order.

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3 years ago
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An investment made 10 years ago is worth $100,000. if the annual return over these 10 years was 7.20%, then the original investm
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The original investment amount was $ 68.56 then annual return on investment is 10 years was 7.20% interest.

What is investment?

Investment definition is assets invested in to build wealth and save money on bank, property and projects for specific time period of money.

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PV= FV/ (1 + i) n

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As a result, the original amount of investment is 68. 56

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The difference between the two mentioned concepts lies in the fact that HR planning is a long-term plan that is aimed at trying to understand how the staffing needs of the company can be improved for better success.

Unlike HR planning, a staffing plan is aimed at identifying the immediate employment needs of the company and filling them up. In businesses, HR planning is very vital to building sustainability. Staffing is also important but it only considers the interim.

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