Answers
Answer:
P/E Ratio = 12x or 12 times
Explanation:
We know that the P/E ratio is calculated by dividing the price per share by the earnings per share or EPS.
P/E = Price per share / Earnings per share
We already have EPS. We need to calculate the price per share.
It is given that book value per share is $20 and the market to book ratio is 1.2x or 1.2 times. Using the formula for market to book ratio, we calculate the market price per share to be,
M/B = Market price per share / Book value per share
1.2 = Market price per share / 20
20 * 1.2 = Market price per share
Market price per share = $24
So, P/E ratio = 24 / 2
P/E Ratio = 12x or 12 times
The Price/Earnings (P/E) ratio for the company is 12, indicating that investors are willing to pay 12 times the company's earnings per share (EPS) for its stock based on its current market price.
The Price/Earnings (P/E) ratio is calculated by dividing the market price per share by the earnings per share (EPS).
- EPS = $2.00
- Market/Book Ratio = 1.2x
- Book Value per Share = $20
Market Price per Share = Market/Book Ratio * Book Value per Share
= 1.2 * $20
= $24
Now, calculate the P/E ratio:
P/E Ratio = Market Price per Share / EPS
= $24 / $2.00
= 12
The P/E ratio for the company is 12.
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Related Questions
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Amy sets herself a goal and says. "I'd like to lose 10 pounds." Which of the following criteria of the SMART system is missing in Amy's goal?a. Specificityb. time framec. measurabilityd. realism
The Refining Department of SweetBeet, Inc. had 74,000, tons of sugar to account for in July. Of the 74,000 tons, 42,000 tons were completed and transferred to the Boiling Department, and the remaining 32,000 tons were 60% complete. The materials required for production are added at the beginning of the process. Conversion costs are added evenly throughout the refining process. The weightedminus−average method is used. Calculate the total equivalent units of production for direct materials.
If you owned a small firm that had become somewhat established, but you needed a surge of financial capital to carry out a major expansion, would you prefer to raise the funds through borrowing or by issuing stock? Explain your choice.
Answers
Answer:
Check the explanation
Explanation:
- The foremost thing is to first consider steady states. The Sluggish population growth rate swings in the line representing population growth and depreciation to the downward trend.
- The new stable rate has a superior level of capital per worker thereby having a higher level of output per worker.
- In Steady state, the entire output develops at rate n, whereas the output rate per worker grows at figure 0. Hence, slower population growth will hamper the figure of total output growth, but the rate of per-worker output growth will be the same.
- Now reflect on the transition. We know that the constant-state level of output per worker is higher with little population growth. Hence, for the period of the transition to the new steady state, output per worker should grow at a rate faster than 0 for a sometime.
Answers
Answer:
$27.14
Explanation:
Calculation for the price of the firm's perpetual preferred stock
Using this formula
Price of the firm perpetual preferred stock = Annual dividend / Required return
Where,
Annual dividend =$1.90
Required return=7% or 0.07
Let plug in the formula
Price of the firm perpetual preferred stock = $1.90 / 0.07
Price of the firm perpetual preferred stock=$27.14
Therefore the Price of the firm perpetual preferred stock will be $27.14
Answers
Answer:
$1,023
Explanation:
As for the provided information, we have:
Total cost associated with JOB 806 = $682
Is it completed = Yes
Are the product sold = Yes
Now, it is provided that the selling price of products = Cost + 50% of cost
Or simply Cost 150% = Selling Price of goods
Therefore, selling price of this job = $682 150% = $1,023
Sales price per unit $200 $4,000 $5,220
Variable costs per unit 80 1,000 2,088
Total fixed costs 73,200 660,000 3,758,400
Target profit 266,760 3,000,000 3,132,000
Calculate:
Contribution margin per unit
Contribution margin ratio
Required units to break even
Required sales dollars to break even
Required units to achieve target profit
Answers
Answer:
Contribution margin per unit
A = $120
B = $3,000
C = $3,132
Contribution margin ratio
A = 60%
B = 75%
C = 60%
Units to break even
A = 610 units
B = 220 units
C = 1,200 units
Sales dollars to break even
A = $122,000
B = $880,000
C = $6,264,000
Units to achieve target profit
A = 2,833 units
B = 1220 units
C = 2,200 units
Explanation:
Contribution margin per unit
Contribution margin = Sales - Variable Costs
A B C
Sales price per unit $200 $4,000 $5,220
Variable costs per unit ($80) ($1,000) ($2,088)
Contribution Margin $120 $3,000 $3,132
Contribution margin ratio
Contribution margin ratio = Contribution / Sales × 100
A = $120 / $200 × 100
= 60%
B = $3,000 / $4,000 × 100
= 75%
C = $3,132 / $5,220 × 100
= 60%
Units to break even
Units to break even = Fixed Cost ÷ Contribution margin per unit
A = $73,200 ÷ $120
= 610 units
B = $660,000 ÷ $3,000
= 220 units
C = $3,758,400 ÷ $3,132
= 1,200 units
Sales dollars to break even
Units to break even = Fixed Cost ÷ Contribution margin ratio
A = $73,200 ÷ 60%
= $122,000
B = $660,000 ÷ 75%
= $880,000
C = $3,758,400 ÷ 60%
= $6,264,000
Units to achieve target profit
Units to achieve target profit = Fixed Cost + Target Profit ÷ Contribution margin per unit
A = $73,200 + 266,760 ÷ $120
= 2,833 units
B = $660,000 + 3,000,000 ÷ $3,000
= 1220 units
C = $3,758,400 + 3,132,000 ÷ $3,132
= 2,200 units
Answers
Answer:
(a) $40
(b) $24,000
(c) 40%
Explanation:
Given that,
Selling price = $100 per unit
Variable costs = $60 per unit
Fixed costs = $2,500 per month
Contribution margin per unit:
= Selling price - Variable costs
= $100 per unit - $60 per unit
= $40
Total Contribution margin:
= Contribution margin per unit × No. of units sold
= $40 × 600 units
= $24,000
Contribution margin ratio:
= (Selling price - Variable costs) ÷ Selling price
= ($100 per unit - $60 per unit) ÷ $100 per unit
= 0.4 or 40 %
$2,000 unfavorable.
$2,000 favorable.
$8,000 favorable.
$6,000 unfavorable.
Answers
Answer:
The correct answer is B.
Explanation:
Giving the following information:
At the normal capacity of 16,000 units, budgeted manufacturing overhead is $64,000 variable and $180,000 fixed. If Chambers had actual overhead costs of $250,000 for 18,000 units produced.
Variable overhead rate= 64,000/16,000= $4
Overhead variance= real - allocated
Overhead variance= 250,000 - (4*18,000 + 180,000)= 250,000 - 252,000= 2,000 favorable