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Softa [21]
1 year ago
10

Bay City Mining, Inc. has a price of $20 a share, outstanding shares of 2.5 million, retained earnings of $1 million dollars, an

d a dividend yield of 2 percent.
It has a price-earnings ratio of:

a. 50, which is high by historical standards.
b. 50, which is low by historical standards.
c. 25, which is high by historical standards.
d. 25, which is low by historical standards.
Business
1 answer:
weqwewe [10]1 year ago
5 0

Answer:

a. 50, which is high by historical standards.

Explanation:

a. 50, which is high by historical standards.

It is high because  current price  is high than earnings.

Earning yield is  the reciprocal of price earning ratio that is = 1/ (P/E ratio) expressed as a percentage.

So

PRice Earning ratio = Market price per share/ Earning per share

Price Earning ration= $20/ 0.4 = 50

Earning per share= Earnings/ No of shares outstanding

EPS= $ 1 million/$ 2.5 million = 0.4

You might be interested in
Since stock prices will shift in response to unpredictable future news, these prices will tend to follow what mathematicians cal
Sidana [21]

Answer:

<em>a random walk with a trend</em>

Explanation:

This model assumes that in each period the stock prices would take a random step away from what was its previous value.

<em><u>Stock prices cannot be predicted therefore they are a random walk. Future prices cannot be predicted by what used to be the prices in the past. Stock prices change in response to unpredictable future news, hence they follow a random walk with a trend.</u></em>

6 0
2 years ago
Pelicans Ice is a snow cone stand near the local park. To plan for the? future, Pelicans Ice wants to determine its cost behavio
ra1l [238]

Answer:

The correct answer is B.

Explanation:

Giving the following information:

Month Number of snow cones Total operating costs

January 6,400 $5,980

February 7,000 $6,400

March 5,000 $5,000

April 6,900 $6,330

May 9,000  $7,000

June 7,250 $6,575

To calculate the fixed costs using the high-low method, first, we need to calculate the unitary variable cost:

Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)

Variable cost per unit= (7,000 - 5,000) / (9,000 - 5,000)= $0.5 per unit

Fixed costs= Highest activity cost - (Variable cost per unit * HAU)

Fixed costs= 7,000 - (0.5*9,000)= 2,500

Fixed costs= LAC - (Variable cost per unit* LAU)

Fixed costs= 5,000 - (0.5*5,000)= 2,500

3 0
1 year ago
Mackinaw Inc. processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct labor, and fa
yaroslaw [1]

Answer:

You are missing the requirements. I looked them up and found the following:

Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

                                   Standard Costs                  Actual Costs

Direct materials      185,000 lbs. at $6.00     183,200 lbs. at $5.80

Direct labor             18,500 hrs. at $16.50      18,930 hrs. at $16.90

Factory overhead Rates per direct labor hr., based on 100% of normal capacity of 19,310 direct labor hrs.:

Variable cost,                       $3.10                          $56,780

variable cost Fixed cost,     $4.90                         $94,619 fixed cost

Each unit requires     0.25 hours of direct labor

direct materials price variance = AQ x (AP - SP) = 183,200 x ($5.80 - $6) = -$36,640 favorable variance

direct materials quantity variance = SP x (AQ - SQ) = $6 x (183,200 - 185,000) = -$10,800 favorable variance

total direct materials cost variance = (AQ X AP) - (SQ X SP) = (183,200 X $5.80) - (185,000 X $6) = $1,062,560 - $1,110,000 = -$47,440 favorable variance

or

total direct materials cost variance = direct materials price variance + direct materials quantity variance = -$36,640 - $10,800 = -$47,440 favorable variance

4 0
2 years ago
During the months of January and February, Solitare Corporation sold goods to two customers. The sequence of events was as follo
stepladder [879]

Answer:

$178

Explanation:

Net Sales:

= Sales (January & February) of wizard and Spyder - Discount allowed to Wizard Inc

= ($100 + $80) - ($100 × 2%)

= $180 - $2

= $178

Gross Profit = Net Sales - Cost of goods sold

                   = $178 - ($70 + $60)

                   = $178 - $130

                   = $48

Therefore, total revenue Solitare would report over the two months is $ 178 with a gross profit of $48.

8 0
2 years ago
The united states department of agriculture (usda) found that the proportion of young adults ages 20–39 who regularly skip eatin
deff fn [24]

Full Question

The united states department of agriculture (usda) found that the proportion of young adults ages 20–39 who regularly skip eating breakfast is 0.238. suppose that lance, a nutritionist, surveys the dietary habits of a random sample of size n=500 of young adults ages 20–39 in the united states.

Apply the central limit theorem for the binomial distribution to find the probability that the number of individuals, ?, in Lance's sample who regularly skip breakfast is greater than 122. You may find table of critical values helpful.

Express the result as a decimal precise to three places.

Answer:

The probability using the Normal Approximation that out of lance’s sample more than 122 people is 0.356

Explanation:

Given

n = Sample Size = 500

p = Probability = 0.238

Using the normal approximation to binomial distribution,

Let X = Event such that a person skips breakfast

If X ~ Binomial (n,p)

Using normal approximation

X ~ Normal (np,npq)

Where n = 500 and p = 0.238

So, X ~ Binomial (n,p) becomes

X ~ Binomial (500 , 0.238)

Using Normal Approximatiom

X ~ (119, 90.678)

The critical table is then constructed as follows;

Binomial --------- Normal

P(X = a) --------- P(a - 0.5 < X < a + 0.5)

P(X ≥ a) --------- P(X > a - 0.5)

P(X > a) --------- P(X > a + 0.5)

P(X ≤ a) --------- P(X < a + 0.5)

P(X < a) --------- P(X < a - 0.5)

Calculating the probability using the Normal Approximation that out of lance’s sample more than 122 people skips

This can be written as P(X > 122)

Looking at the critical table above.

P(X>a) ----- P(X>a + 0.5)

So,

P(X > 122) ---- P(X > 122 + 0.5)

P(X > 122) ---- P(X > 122.5)

Calculating Z score using

z = (x - u)/√σ²

X = 122.5

From X ~ (119, 90.678)

u =mean = 119

σ = standard deviation = √90.678

So,

Z = (122.5 - 119)/√90.678

z = 0.367550550865750

Z = 0.37 ---- Approximated

P(X > 122.5) = P(Z > 0.37)

P(X > 122.5) = 1 - P(Z<0.37) --- using z table

P(X > 122.5) = 1 - 0.6443

P(X > 122.5) = 0.3557

P(X > 122.5) = 0.356 -- Approximated

6 0
2 years ago
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