Answer:
The expected share price=$20.07
Explanation:
Step 1: Calculate the price/earnings to growth ratio(PEG) ;
PEG ratio=(Price/EPS)/EPS growth
where;
Price=Price per share
EPS=earnings per share=share price
EPS growth=share price growth
In our case;
Price per share=$4.22
Share price=$48.83
Share price growth rate=3.1%=
Replacing;
PEG ratio=(4.22/48.83)/3.1
PEG ratio=0.0279
Step 2: Calculate share price
PEG ratio=(Price per share/share price)/share price growth
where;
PEG ratio=0.0279
Price per share=$2.63
Share price=x
share price growth rate=4.7%
Replacing;
0.0279=(2.63/x)/4.7=2.63/4.7 x
4.7 x×0.0279=2.63
x=2.63/(4.7×0.0279)
x=20.07
The expected share price=$20.07
Answer:
Amortize loan woul´d be the best loan
Explanation:
Even though there are no options in the question, the amortize loan coul´d be the best loan, with equal principal payments.
This one is a scheduled periodic payments that are applied to both principal and interests. This one first pays off the relevant interests expense for the period, and then the payment reduces the principal
Answer:
Estimated manufacturing overhead rate= $10 per direct labor hour
Explanation:
Giving the following information:
estimated manufacturing overhead= $2,886,000
estimated direct labor dollars= 288,600
To calculate the estimated manufacturing overhead rate we need to use the following formula:
Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Estimated manufacturing overhead rate= 2,886,000/288,600= $10 per direct labor hour
Answer:
The production possibilities curve would have shifted inwards.
Explanation:
A production possibility curve shows the maximum possible bundles of two goods that can be produced in an economy in a given period. A reduction in the availability of resources causes this curve to shift to the left.
The outbreak of bubonic plague in the 14th century caused the European population to decrease by 30-60%. A decrease in the population implies a decrease in the labor force. This means that the economies will be able to produce less than earlier.
This will cause the production possibilities curve to shift inwards to the left.
