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masha68 [24]
2 years ago
12

A good indicator of the value of a company is the ratio of the price of its stock to its yearly earnings expressed as dividends.

This ratio is called the Price to Earnings or P/E ratio. If the price of a stock is $36 and it's earnings are $3.00, by how many cents must the earnings decrease in order that the P/E ratio increases by 20%?
Mathematics
1 answer:
gulaghasi [49]2 years ago
3 0

Answer:

4.92 cents

Step-by-step explanation:

The Price to Earnings or P/E is the ratio of the price of its stock to its yearly earnings expressed as dividends.

The price of a stock is $36 and it's earnings are $3.00

This means the price to earnings ratio,

P/E = 36/3 = 6

Let us express this ratio as percentage. This becomes

36/3 ×100 = 1200%

This means the ratio of price to earnings = 1200%

For an increase of 20%, the ratio of price to earnings will be = 1200 + 20 = 1220%.

Let x be the the value of earnings that would increase the ratio by 20%

36/3 × 100 = 1200%

36/x × 100 = 1220℅

3600/x = 1220

x = 3600/1220 = $2.9508

The amount by which the earnings must decrease in order that the P/E ratio increases by 20% will be

$3 - $2.9508 = $0.0492.

Converting to cents, we multiply by 100. It becomes

0.0492×100 = 4.92 cents

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One hundred teachers attended a seminar on mathematical problem solving. The attitudes of representative sample of 12 of the tea
andrew11 [14]

Answer:

a) 1.92

b) 3.25

c) 1.5

d) -5.23

Step-by-step explanation:

We are given the following in the question:

4, 7, -1, 1, 0, 5, -2, 2, -1, 6, 5, -3

a) mean of score change

Mean = \displaystyle\frac{\text{Sum of all observations}}{\text{Total number of observation}}

Mean =\displaystyle\frac{23}{12} = 1.92

b) standard deviation for this population

\text{Standard Deviation} = \sqrt{\displaystyle\frac{\sum (x_i -\bar{x})^2}{n}}  

where x_i are data points, \bar{x} is the mean and n is the number of observations.

Sum of squares of differences = 126.92

\sigma = \sqrt{\frac{126.92}{12}} = 3.25

c) median change score

Median:\\\text{If n is odd, then}\\\\Median = \displaystyle\frac{n+1}{2}th ~term \\\\\text{If n is even, then}\\\\Median = \displaystyle\frac{\frac{n}{2}th~term + (\frac{n}{2}+1)th~term}{2}

Sorted data: -3, -2, -1, -1, 0, 1, 2, 4, 5, 5, 6, 7

Median =

\dfrac{6^{th} + 7^{th}}{2} = \dfrac{1+2}{2} = 1.5

d) change score that is 2.2 standard deviations below the mean.

x = \mu - 2.2(\sigma)\\x = 1.92-2.2(3.25)\\x = -5.23

4 0
2 years ago
Last year a banquet hall charged $65 per person to attend a function. The function C(p) = 65p represents the total cost, C, to r
zlopas [31]

Answer:

Domain = [0, 50]

Range   = [0, 3250]

Step-by-step explanation:

A function shows the relationship between two variables (independent variable and dependent variable). The independent variable is a variable not dependent on any variable, it is the input of the function while the dependent variable is a variable dependent on other variable, it is the output of the function.

The domain of a function is the set of all input variables (independent variable) and the range of a function is the set of all output variables (dependent variables).

In the function C(p) = 65p, p is the independent variable and C(p) is the dependent variable.

Since the hall can hold a total of 50 people, the domain of the function = [0, 50]

C(0) = 65(0) = 0, C(50) = 65(50) = 3250

Hence, the range of the function = [0, 3250]

8 0
2 years ago
Describe any domain restrictions that make sense for each of these scenarios: The price of a stock fluctuates several times thro
mrs_skeptik [129]

Answer:

  • a) Restriction: days of the year (a discrete time)

  • b) The time the ball is on the air: t = 0, until the balls touchs the ground (any real value from t = 0 to t when the ball hits the ground)

  • c) Any positive real value: x ≥ 0

Explanation:

The <em>domain </em>is the set of elements that can be inputs of the <em>function</em>.

<u><em>1. The price of a stock fluctuates several times throughout the year as a function of time.</em></u>

The input variable is the time through out the year.

If you assume that the fluctuaion is recorded once a day, and not every second, the logical assumption is that the time is a day of the year.

Thus, the restricion is the days of the year.

You could represent them in different forms, like DD/MM/YY, or even as a number from 1 to 365 if it covers just one year.

<u><em></em></u>

<u><em>2. A ball is hit into the air by a baseball player, rises until it reaches its highest point, and then falls into left field.</em></u>

The domain is the time the ball is on the air, which may be any real value from t = 0, until the balls touchs the ground.

It is not restricted to integer numbers.

<u><em>3. The volume of a spherical balloon increases as the balloon is blown up and decreases as air is let out of it.</em></u>

The inputs of the function are amounts of air, which may be measured as number of moles.

The number of moles can be any real value equal or greater than zero.

Thus, the domain is the positive real values x ≥ 0.

8 0
2 years ago
Read 2 more answers
Veronique and Lily compare their investment accounts to see how much they will have in the accounts after seven years. They subs
ch4aika [34]

Answer:

Veronique: A = 1,000 (1 + 0.05) superscript 7, Lily: A = 1,800 (1 + 0.09) Superscript 7

Step-by-step explanation:

the equation used to calculate future value of an investment (or bank deposit) using compound interest is:

future value = present value x (1 + interest rate)ⁿ

  • Veronique: future value = $1,000 x (1 + 5%)⁷ = $1,057
  • Lily: future value = $1,800 x (1 + 9%)⁷ = $3,290.47

6 0
2 years ago
A shopkeeper marks his goods at 40% above cost (the price he pays for the goods) and then offers a 25% discount. If a jacket cos
Savatey [412]
C. $210
The original cost of $200 plus the 40% markup equals $280.
Then the $280 with the 25% discount is $210.
7 0
2 years ago
Read 2 more answers
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