answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
strojnjashka [21]
1 year ago
14

Botox Facial Care had earnings after taxes of $340,000 in 20X1 with 200,000 shares of stock outstanding. The stock price was $74

.80. In 20X2, earnings after taxes increased to $378,000 with the same 200,000 shares outstanding. The stock price was $83.00.
a. Compute earnings per share and the P/E ratio for 20X1. (The P/E ratio equals the stock price divided by earnings per share.) (Do not round intermediate calculations. Round your final answers to 2 decimal places.)




b. Compute earnings per share and the P/E ratio for 20X2. (Do not round intermediate calculations. Round your final answers to 2 decimal places.)




c. Why did the P/E ratio change? (Do not round intemediate calculations. Input your answers as percents rounded to 2 decimal places.)
Business
1 answer:
scoundrel [369]1 year ago
3 0

Answer:

$1.7; 44 times

Explanation:

a) EPS(20X1):

= Earnings after taxes / Number of shares

= $340,000 / 200,000

= $1.7

P/E ratio(20X1):

= Price / EPS

= $74.80 / $1.7

= 44 times

EPS(20X2):

= Earnings after taxes / Number of shares

= $378,000 / 200,000

= $1.89

P/E ratio(20X2):

= Price / EPS

= $83.00 / $1.89

= 43.92 times

You might be interested in
Hypothesize why nearly an equal number of consumers use mobile and online banking to pay bills?
Taya2010 [7]

Answer:

Nearly an equal number of consumers use mobile and online banking to pay bills because of the ease and convenience these methods afford them.

Explanation:

To hypothesize means to provide a possible explanation for something. So, a possible reason or explanation of why most customers prefer the online and mobile methods of making payments and receiving funds is that it is much easier for them.

Some of these easy benefits include;

1. They do not have to stand in long queues to pay through cheques.

2. They can process their transactions from any location and at any time.

3. There are fewer requirements needed to process transactions.

3 0
2 years ago
According to Laudon and Laudon, which of the following is the most complete technical definition of an "organization"? Group of
dangina [55]

Answer:

Stable, formal social structure that takes resources from the environment and processes them to produce outputs

Explanation:

The technical definition of an "organization", according to Laudon and Laudon, focused on three elements of an organization which are stable, formal and social structures.

In terms of longevity and routineness, an organization is more stable than an informal group. Organizations are formal legal entities with internal rules and procedures that must abide by laws. Organizations are also social structures because they are a collection of social elements.

7 0
1 year ago
An osha inspector completed her inspection of a mining operation, including a walkaround and employee interviews. then the osha
Leviafan [203]

Answer:

The inspector found a violation that could cause serious injury or death.

8 0
1 year ago
Kale, a California CPA, is a sole practitioner who prepared 500 tax returns in 20X6. At the end of 20X6 she took over a tax prac
Firdavs [7]

Answer:

Kale should apply to have her license put on inactive status while she completes her CPE requirements. During thatperiod of time she may not engage in the practice of public accounting

Explanation:

6 0
1 year ago
If a company provides an online service that delivers physical products and services but does not exist as a brick-and-mortar st
grin007 [14]

Answer: a. an e-brand brand

Explanation:

An e-brand is one that provides just an online service for merchandise sales. These companies do not have physical locations but rather show you all that they sell on their websites and then when you purchase something, they deliver it as a physical good. The most popular example of such is Amazon.

The advantage of such brands is that they get to save on the rental and other property costs related to establishing brick-and-mortar stores because they are online.

3 0
1 year ago
Other questions:
  • A more efficient means of processing algae to produce an anticancer drug is discovered. as a result, the supply curve for the dr
    9·1 answer
  • Pharoah Company just began business and made the following four inventory purchases in June: June 1 186 units $1290 June 10 248
    7·2 answers
  • Leo Burnett developed a promotional campaign for Hallmark with two purposes: (1) to raise awareness about the fight against AIDS
    10·1 answer
  • Over its first two years a new car loses at least 30% of its resale value. What will the average resale value of a new car costi
    11·1 answer
  • The Nature’s Sunshine natural supplement company decided to use Oracle’s CRM system to manage its many customers. Identify all o
    6·1 answer
  • Tyler Holdlong owns a small retail property that he inherited from his father. There are no mortgages or interest expenses conne
    15·2 answers
  • Ayayai Corp. has the following inventory data:
    11·1 answer
  • Which of the following statements is correct? Review Later Strategic buyers are asset managers that are trying to time the purch
    8·1 answer
  • One major reason businesses seek investment is to:
    5·2 answers
  • A broad differentiation strategy Multiple choice question. appeals to customers who don't tend to be particularly loyal to a bra
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!