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vovangra [49]
3 years ago
6

In March 2017, Amazon and Clorox reported nearly identical earnings per share, but the stock price of Amazon was more than six t

imes higher than the Clorox stock price. The most likely explanation for that difference is that ________.
a. Clorox is bad for the environment
b. Amazon is a riskier company
c. investors see better long-term prospects for Amazon
d. Amazon has more shares of stock outstanding
Business
1 answer:
adoni [48]3 years ago
3 0

Answer:

c. investors see better long-term prospects for Amazon

Explanation:

As we know that Amazon has the more customer base in the market due to which the shareholder predicted the expected profit in upcoming years. The company could run in long run. Even the ompany suffered huge losses due to discount provided but the investors are ready to invest in this company as they seen there is a better and long term prospects

Therefore according to the given situation, the option c is correct

You might be interested in
The following balances are available for Chrisman Company:
kenny6666 [7]

Answer:

Chrisman Company

Statement of Cash Flows for the year ended December 31, 2016

(using the indirect method):

Operating activities:

Adjusted cash from operations      $61,000

Changes in working capital:

Accounts receivable                         -5,000

Inventory                                           10,000    

Prepaid rent                                      -3,000

Accounts payable                              2,000

Income taxes payable                      -2,000

Short-term notes payable               10,000

Net cash from operating activities 73,000

Investing activities:

Equipment                                    -100,000

Financing activities:

Bonds                         -25,000

Common stock           50,000      25,000

Net cash flows                             -$2,000

Explanation:

a) Data and Calculations:

                                            December 31     December 31     Changes

                                                  2016                2015

Cash                                        $8,000            $10,000             -$2,000

Accounts receivable              20,000               15,000                5,000

Inventory                                 15,000              25,000              -10,000

Prepaid rent                             9,000                 6,000                3,000

Land                                       75,000               75,000                0

Plant and equipment          400,000            300,000             100,000

Accumulated depreciation (65,000)             (30,000)              35,000

Totals                               $462,000            $401,000    

Accounts payable              $12,000              $10,000              $2,000

Income taxes payable           3,000                 5,000                -2,000

Short-term notes payable  35,000               25,000                10,000

Bonds payable                    75,000              100,000             -25,000

Common stock                200,000               150,000              50,000

Retained earnings            137,000                 111,000              26,000

Totals                             $462,000             $401,000

b) Net income $26,000

Depreciation 35,000

Adjusted cash from operations = $61,000

c) The statement of cash flows can be prepared using either the direct method or the indirect method.  The indirect method affects mainly the operating activities section and starts with the net income and adjusts it with non-cash items before considering the changes in the working capital.  The statement is a financial statement that classifies the cash flows during the period into three main categories: operating, investing, and financing activities.  There are also non-cash flows involving accounts that do not cause any cash flows.

4 0
3 years ago
If profit is more than $10000 when fixed costs are $5000 and the price when producing 1000 units is $75, then variable cost is?
stira [4]
75/1000= $0.075 per unit or variable
3 0
3 years ago
Rylan Industries is expected to pay a dividend of $5.70 year for the next four years. If the current price of Rylan stock is $31
PilotLPTM [1.2K]

Answer: Rylan's stock would sell for $21.96 at the end of the four years

Explanation:

PV = Current Price = $31.27

D = Dividend paid each year =$5.70

r = Equity cost of capital = 12%

FV = Price of Rylan's stock at the end of four years = ??

N = Number of years = 4

PV = D [\frac{1 - \frac{1}{(1+r)^{N} } }{r} ] + \frac{FV}{(1+r)^{4} }

31.27 = 5.70 [\frac{1 - \frac{1}{(1+0.12)^{4} } }{0.12} ] + \frac{FV}{(1+0.12)^{4} }

Solve for FV,

FV = $21.96

Rylan's stock would sell for $21.96 at the end of the four years

8 0
3 years ago
Kilala moba ako filipino ako panget mo ​
hammer [34]

Answer:

Mas pangít ka

Mas pangít ka sa daga

Kamuka mo si babalu

5 0
3 years ago
Inventory records for Marvin Company revealed the following: Date Num of units unit cost Mar. 1 Beginning Inventory 1000 7.20 Ma
swat32

Answer:

Ending inventory= $5,040

Explanation:

Giving the following information:

Beginning Inventory= 1000 units for  $7.20

Mar. 10: Purchase= 600 units for $7.25

Mar. 16: Purchase= 800 units for $7.30

Mar. 23: Purchase= 600 units for  $7.35

Marvin sold 2,300 units.

Under the LIFO inventory method, the ending inventory cost is calculated using the first units incorporated to inventory.

Ending inventory in units= total units - units sold

Ending inventory in units= 3,000 - 2,300= 700 units

Ending inventory= 700*7.2= $5,040

8 0
3 years ago
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