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leva [86]
3 years ago
15

When evaluating whether to purchase public stock (i.e. an investor), what ratio should be considered to be most important and WH

Y
Business
1 answer:
Olenka [21]3 years ago
8 0

Answer:

The price earnings ratio should be considered to be most important.

The reason is that the price earnings ratio indicates how much the market is ready to pay for a stock based on its current earnings.

Explanation:

The price earnings ratio is a market prospect ratio that compares the market price per share to the earnings per share to determine the market value of a stock in relation to its earnings. The P/E ratio is calculated using the following formula:

P/E ratio = Market price per share / Earnings per share

The price earnings ratio should be considered to be most important because it indicates how much the market is ready to pay for a stock based on its current earnings. It is frequently used by investors to estimate a stock's fair market value by forecasting future earnings per share. The rationale for this is that companies with larger future earnings are more likely to pay bigger dividends or have stock that appreciates in value.

The price to earnings ratio is also known as a price multiple or earnings multiple for this reason. This is because the ratio is used by investors to determine the value of a share based on its earnings multiple. In other words, how much they are willing to pay as a multiple of their incomes.

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DeMarcus has been general manager of the Surf and Turf Club restaurant for many years and always schedules extra staff for the b
Keith_Richards [23]

Answer:

illusion of control.

Explanation:

The illusion of control is the tendency for people to overestimate their ability to control events; for example, it occurs when someone feels a sense of control over outcomes that they demonstrably do not influence.

In the scenario, although Business has been consistently slow on Fridays in recent months, yet DeMarcus decides to continue with the extra staffing.

This is obviously a case of illusion because he has no control over the external business environment and there is no logical reason to continue with extra staffing.

3 0
3 years ago
Why might the unemployment rate underestimate the underutilization of labor​ resources? The unemployment rate might underestimat
DaniilM [7]

Answer:

marginally attached staff and​ part-time staff that hope on getting​ full-time jobs

6 0
3 years ago
Adam has a monthly income of $20 that can be spent on books (B) and pencils (P). The price of a book is $5 and the price of a pe
Brut [27]

Answer:

A. 2 books and 20 pencils

Explanation:

2 x5$= 10$

20x 0.50$= 10$

10$+10$=20$

4 0
3 years ago
GNI PPP, or gross national income divided by purchasing power parity, helps measure:
Mekhanik [1.2K]

Answer: 1- the standard of living in a country.

Explanation: The standard of living is a measure of the material aspects of an economy. It counts the amount of goods and services produced and available for purchase by a person, family, group, or nation.

The generally accepted measure of the standard of living is GDP per Capital. This is a nation's gross domestic product divided by its population. The GDP is the total output of goods and services produced in a year by everyone within the country's borders. it can also be measured using the gross national income divided by purchasing power parity.

8 0
3 years ago
A market researcher for a cable company is seeking to determine the number of households in a selected neighborhood that consist
diamong [38]

Answer:

Obtain census information available on the internet,

Explanation:

The number of households in the neighbourhood must have been captured during census and uploaded on the census board website or those of relevant agencies.

A visit to such websites to get the number of households in the neighbourhood of interest is very cost-efficient as the only thing that the market researcher needs to do is to have just internet subscription package which can be obtained for an extreme lesser fee when compared to paying the households visits, transporting to and fro and replenishing lost energy by buying food or taking energy drinks.

5 0
3 years ago
Read 2 more answers
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