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Licemer1 [7]
2 years ago
14

Sally is looking to invest in Agricon Products when its P/E ratio is lower than 15. Each share is currently projected to earn $1

.30 this year. Which
of the stock prices listed below would give the P/E ratio she is looking for?
1. $18 a share
II. $19 a share
III. $20 a share
Select the best answer from the choices provided.
А.
I only
В.
III only
Ос.
I and II only
OD. III, and III
Business
1 answer:
snow_lady [41]2 years ago
4 0

Answer:

C

Explanation:

P/E ratio is a method of valuing a company. It is derived by dividing price of the stock by earnings

1. $18/1.3 = 13.8

2. 19/1.3 = 14.6

3. 20 / 1.3 = 15.4

The first and second stock have a P/E ratio is lower than 15.

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Currently digby is paying a dividend of $19. 67 (per share). if this dividend were raised by $3. 64, given its current stock pri
Oliga [24]

Given its current stock price the dividend yield would be 42.39%.

Given,

Digby is paying a dividend of $19. 67 (per share)

Dividend were raised by $3. 64

Dividend yield = Dividend per share / Market price per share.

As there is no share price given, I shall assume that the share price is $100. The new share price will be:

= 100 * (1 + $3. 64)

= $464

The Dividend yield would then become:

= 19.67 / 464

= 42.39%

The dividend yield will be calculated on the basis of the dividend per share divided by the market price per share and this will be calculated on the basis of the percentage.

To learn more about dividend yield here:

brainly.com/question/18687546

#SPJ4

3 0
1 year ago
Classify each item as an asset, liability, common stock, revenue, or expense. (a) Issuance of ownership shares. select the corre
Roman55 [17]

Answer:

The classified list of items is as follows:

(a) Issuance of ownership shares - Common stock

(b) Land purchased - Asset

(c) Amounts owed to suppliers - Liability

(d) Bonds payable - Liability

(e) Amount earned from selling a product - Revenue

(f) Cost of advertising - Expense

Hence, all the items are classified as asset, liability, revenue, common stock and expense.

8 0
3 years ago
Analyze what happens to the market for KFC if the price of Mcdonald's burger falls.
ICE Princess25 [194]
Bruh nothing gonna happen cus chicken will never be beaten by McDonands.
7 0
2 years ago
The privately-owned school system in Smalltown has a virtually unlimited capacity. It accepts all applicants and operates on bot
oksian1 [2.3K]

Answer:

A

Explanation:

The privately-owned school system in Smalltown generates  positive externality to members of SmalltownA good has positive externality if the benefits to third parties not involved in production is greater than the cost. an example of an activity that generates positive externality is research and development. Due to the high cost of R & D, they are usually under-produced. Government can encourage the production of activities that generate positive externality by granting subsidies.

The free rider problem is a form of market failure. It occurs when people benefit from a good or service of communal nature and do not pay to enjoy these services.

The free rider has caused a decline in revenues and did not cause the private market to undersupply education to the community

6 0
2 years ago
Kết luận sự thích ứng tâm lý của sinh viên năm nhất
Mamont248 [21]

Answer:

I think I should ask in English language

4 0
3 years ago
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