Choosing firm goals for your business

Consider Pacific Energy Company and U.S. Bluechips, Inc., both of which reported earnings of $961,000. Without new projects, bot

Daniel [21]

Answer:

a.

Price / Earnings 7.04 times

b.

Price / Earnings 7.14 times

c.

Price / Earnings 7.14 times

Explanation:

a.

Earning = $961,000

Rate of return = 14%

PV of Perpetuity = Cash flow / rate of return

PV of Perpetuity = $961,000 / 0.14 = $6,864,286

As we know that Price is the Present value of future cash flows which is perpetuity of $6,764,286.

Price Earning Ratio = $6,764,286/ $961,000 = 7.04 times

b.

Earning = $961,000 + $111,000 = $1,072,000

Rate of return = 14%

PV of Perpetuity = Cash flow / rate of return

PV of Perpetuity = $1,072,000 / 0.14 = $7,657,143

As we know that Price is the Present value of future cash flows which is perpetuity of $7,657,143.

Price Earning Ratio = $7,657,143/ $1,072,000 = 7.14 times

c.

Earning = $961,000 + $211,000 = $1,172,000

Rate of return = 14%

PV of Perpetuity = Cash flow / rate of return

PV of Perpetuity = $1,172,000 / 0.14 = $8,371,429

As we know that Price is the Present value of future cash flows which is perpetuity of $6,764,286.

Price Earning Ratio = $8,371,429 / $1,172,000 = 7.14 times

7 0

3 years ago

You and your friend are traveling home, you discuss how each of you might otherwise have used the four hours devoted to attendin

nekit [7.7K]

The relevant opportunity costs for you and your friend for allocating four hours to attending the concert are "watching a sporting event on TV for you and studying for your friend. "

An opportunity cost is characterized as the estimation of a forgone action or elective when another thing or action is picked. Opportunity cost becomes possibly the most important factor in any choice that includes a tradeoff between at least two alternatives. It is communicated as the relative cost of one option as far as the next best option.

6 0

3 years ago

1. In the study of communication, noise is best defined as _

lesya [120]

Answer:B. anything that interferes with the message being heard or understood.

Explanation: Communication is the process of sending and receiving information, Communication must involve the following for it to take place.

Noise is any form of interaction that prevents or interfere with the adequate transfer and recieving of Information.

Communication can be in the form of verbal communication,print media(News papers, letters etc) through electronic communications (email, television, mobile phone etc).

8 0

4 years ago

Read 2 more answers

The reason that quantum effects are not observable in the everyday, macroscopic world, is because:_____.

julsineya [31]

The reason that quantum effects are not observable in the everyday, macroscopic world, is because the quantum world is referred as a micro environment.

We refer to the quantum world as a micro environment. The world that we call “normal” is the macro environment. Quantum effects are part of many other effects, there are so many effects or outcomes of particles or experiments, that they in a sense balance each other out.

The macro world is simply too large for the effects to be shown. There are so many particles, and therefore a seemingly endless amount of effects and outcomes. When we examine a particle individually, though, there were can see the results in their true forms. The Quantum effects that don’t follow normal classical expectations.

To learn more about Quantum effects here

brainly.com/question/23040788

#SPJ4

3 0

2 years ago

The Director of Information Technology for the city of Tampa, Florida formed a company to sell computer supplies and software. A

yanalaym [24]

Answer:

1. Recording

2. Authorization

Explanation:

Based on the scenario described above, it can be concluded that the control issue, in this case, arose because the Director had both RECORDING and AUTHORIZING duties.

This is because, for the Director of Information Technology for the city of Tampa, Florida not to have been convicted by a jury regardless of what she did, she must have followed the Segregation of Duties accordingly. This is a means of reducing the errors or fraudulent activities of employees.

And given she has a RECORD of transactions to prove her innocence and at the same time, she has AUTHORIZATION or the approval to supply the software, and hence, she is not guilty of the accusation.

3 0

3 years ago