Answer:
$10.72
Explanation:
Calculation for How much is the cost per service
First step is to calculate the Total costs
Building Rent Expense $5,200
DepreciationExpense—Equipment 1,600
Supplies Expense 8,000
Utilities Expense 2,350
Total costs $17,150
Now let calculate the Cost per service using this formula
Cost per service = Total costs / Services
Let plug in the formula
Cost per service = $17,150 / 1,600
Cost per service = $10.72
Therefore the cost per service is $10.72
Pedregon Corporation has provided the following information: Cost per UnitCost per Period Direct materials$ 6.35 Direct labor$ 3.75 Variable manufacturing overhead$ 1.50 Fixed manufacturing overhead $ 15,000 Sales commissions$ 0.50 Variable administrative expense$ 0.55 Fixed selling and administrative expense $ 4,500 If the selling price is $20.60 per unit, the contribution margin per unit sold is closest to:
Answer:
$ 7.95
Explanation:
Calculation for what the contribution margin per unit sold is closest to:
Sales price$ 20.60
Less: VARIABLE COSTS
Direct material$ 6.35
Direct labor$ 3.75
Variable manufacturing overheads$ 1.50
Sales commission$ 0.50
Variable admin expenses$ 0.55
Total Variable costs$ 12.65
Contribution margin$ 7.95
($20.60-$12.65)
Therefore the the contribution margin per unit sold is closest to:$ 7.95
Foundation
QUESTION 8 / 10
Which of the following statements is TRUE about payday loans?
Answer:
what are the answer choices
Consider the following transactions. Receive cash from customers, $16,000. Pay cash for employee salaries, $10,000. Pay cash for rent, $4,000. Receive cash from sale of equipment, $9,000. Pay cash for utilities, $2,000. Receive cash from a bank loan, $5,000. Pay cash for advertising, $8,000. Purchase supplies on account, $4,000.
Answer:
The ending balance is $22,000.
Explanation:
Note: This question is not complete. The complete question is therefore provided before answering the question as follows:
Consider the following transactions. Receive cash from customers, $16,000. Pay cash for employee salaries, $10,000. Pay cash for rent, $4,000. Receive cash from sale of equipment, $9,000. Pay cash for utilities, $2,000. Receive cash from a bank loan, $5,000. Pay cash for advertising, $8,000. Purchase supplies on account, $4,000.
Required: Post transactions to the Cash T-account and calculate the ending balance. The beginning balance in the Cash T-accow1t is $16,000.
The answer to the question is now given as follows:
In the Cash T-account, only transactions involving cash receipts and payments are recorded. While cash receipts are posted on the debit side, cash payments are posted on the credit side of the Cash T-account. The difference between the total of the debit side and the credit side of the Cash T-account gives the ending balance.
Note: See the attached excel file for Preparation of Cash T-Account and Calculation of the ending balance.
In the attached excel file, the ending balance is $22,000.
Note that "Purchase supplies on account, $4,000" is not included in the Cash T-account because it is not a cash transaction.
Employees in the defense industry have greater job security and higher pay when the country is engaged in major military conflicts, therefore it is good for the country to be involved in military conflicts is an example of:
Answer: C the fallacy of composition.
Explanation:
The Fallacy of Composition is meant to explain the false logic that people apply when they believe that because something is true of a subsection of something, then that thing must be true for the whole thing.
For instance, my phone's batter is made of lithium so my entire phone must be made of lithium.
In this scenario, the logic is that it is good to be involved in military conflict because it favors the nation if it favors a subset (employees in defense) which is flawed because other industries might suffer. This however, represents the fallacy of composition.
Echo Corporation had the following balances immediately prior to writing off a $100 uncollectible account:
Current assets $30,000
Accounts receivable 3,300
Allowance for doubtful accounts 300
Current liabilities 10,000
Required:
Calculate the following amounts or ratios and determine the relationship between the amount or ratio before the write-off (x) with the amount or ratio after the write-off (y);
Amount or Ratio Possibilities
1. Current ratio a. x more than y
2. Net accounts receivable balance b. x equals y
3. Gross accounts receivable balance c. x less than y
d. cannot be determined
Answer:
1. Current Ratio
= Current assets/ Current liabilities
= 30,000/10,000
= 3
b. x equals y
The $100 uncollectible will be written off from the Allowance for doubtful debt account and so will not affect the Accounts Receivable (current asset) so the ratio before and after write-off will be equal.
2. Net accounts receivable balance
= Accounts receivable - Allowance for doubtful accounts
= 3,300 - 300
= $3,000
b. x equals y
The $100 uncollectible will be taken from the Allowance account and so will not affect the reduction from the Accounts receivable.
3. Gross accounts receivable balance
Before write off = $3,300
After write off = 3,300 - 100 = $3,200
a. x more than y
Using the gross method means that there is no Allowance account and the write-off will completely be from the Accounts receivable so the amount before write-off will be more than the amount after.
Prices below the free market equilibrium are inefficient because the willingness to pay by someone to consume an additional unit ________ the marginal cost to someone for producing that unit. Group of answer choices exceeds equals None of the above; efficiency is defined in terms of natural resources, not market equilibrium. is less than
Answer: is less than
Explanation:
The equilibrium price in a free market economy represents the point where marginal revenue and marginal costs are being maximised.
If the price falls below this level therefore, a situation arises where the marginal cost of producing this good is more than the marginal price that people can pay for this good which would lead to losses.
For each of the three situations, state if the accounting method used is correct or incorrect. If correct, identify which principle or assumption supports the method used. If incorrect, identify which principle or assumption has been violated.
a. Tina Company owns buildings that are worth substantially more than they originally cost. In an effort to provide more relevant information, Tina reports the buildings at fair value in its acconting reports.
b. Kingston Company includes in its accounting records only transaction data that can be expressed in terms of money.
c. Roger Holloway, owner of Roger's Photography, records his personal living costs as expenses of the business.
Answer:
a. INCORRECT.
Principle violated : HISTORICAL COST PRINCIPLE
Under GAAP, fixed assets should be recorded at their original cost in the balance sheet. In recording at fair value, Tina Company is in violation of this.
b. CORRECT.
Principle used: MONETARY UNIT ASSUMPTION
Under this principle, transactions should have a monetary value that it can be expressed in in the books so as to ensure that it is measurable.
c. INCORRECT.
Principle violated : SEPERATE ENTITY ASSUPTION
This principle states that the personal transactions of the owner and that of the business should be recorded separately so that the business's financial records can be as accurate as possible.
Metroplex Corporation will pay a $2.50 per share dividend next year. The company pledges to increase its dividend by 4.70 percent per year indefinitely. Required: If you require an 13.80 percent return on your investment, how much will you pay for the company's stock today
Answer: $27.47
Explanation:
Given: Growth rate = 4.70% per year = 0.0470 per year
Dividend of next year = $2.50
Expected rate of return on Stock = 13.80% =0.1380
Current price = (Dividend of next year ) ÷ (Expected rate - Growth rate)
= (2.50)÷ (0.1380-0.0470)
= (2.50) ÷ (0.091)
≈ $27.47
Hence, you will pay $27.47 for the company's stock today.
Some companies do not act responsibly in the marketplace, especially when it comes to fair competition. Fair competition between businesses is necessary for the marketplace to operate effectively. The market economy relies chiefly on market forces to allocate goods, services, and other resources, and to determine prices. some companies they use unethical tactics to eliminate competition.
1.Explain three main unethical practices of businesses that can affect consumers.
2. Highlight the main two Responsibilities towards customers.
Answer:
A market economy is an economic system in which economic decisions and the pricing of goods and services are guided by the interactions of a country's individual citizens and businesses. There may be some government intervention or central planning, but usually this term refers to an economy that is more market oriented in general.
Suppose a country's productivity last year was 84. If this country's productivity growth rate of 5 percent is to be maintained, this means that this year's productivity will have to be:
Answer:
88.2
Explanation:
Calculation for what the year's productivity will have to be:
Year's productivity=(84*(1+0.05))
Year's productivity=(84 * 1.05)
Year's productivity=88.2
Therefore this means that this year's productivity will have to be:88.2
Which of Kant's basic human rights is violated when a supervisor requires an employee to do something that is unsafe or environmentally damaging, in spite of the employee clearly objecting to the order
Answer: freedom of conscience
Explanation:
Kant's basic human rights that is violated when a supervisor requires an employee to do something that is unsafe despite the fact that he objected us referred to as freedom of conscience.
Freedom of conscience is also referred to as the freedom of thought and it simply means that an individual has the freedom to have their own thoughts and be able to consider a fact irrespective of the viewpoint of others.
Boston, Inc. applies manufacturing overhead at the rate of $40 per machine hour. Budgeted machine hours for the current period were anticipated to be 120,000; however, a lengthy strike resulted in actual machine hours being worked of only 90,000. Budgeted and actual manufacturing overhead figures for the year were $4,800,000 and $4,180,000, respectively. On the basis of this information, the company's year-end overhead was:
Answer:
$580,000 underapplied
Explanation:
The computation of the ending overhead is shown below:
The applied overhead is
= Predetermined overhead rate × actual machine hours
= $40 × 90,000
= $3,600,000
Now the underapplied overhead is
= $4,180,000 - $3,600,000
= $580,000
So the ending overhead is $580,000 underapplied
Q.2Tullahoma Company purchased equipment for $27,500. It depreciated the equipment over a fiveyear life by the double-declining-balance method until the end of the second year, at which time the asset was sold for $8,500. Calculate the gain or loss on the sale at the end of the second year.
Answer:
A loss of $1400
Explanation:
The double-declining method uses twice the straight-line depreciation method rate in calculating the depreciation amount.
The asset has a useful life of 5 years. The straight-line depreciation rate = 1/5 x 100
=20%.
The double-declining rate will be 40%
The depreciation schedule for two years will be as follows.
Open. Bal Dep. rate Dep. Amount Book value
$27,500 40% $11,000 $16,500.00
$16,500 40% $6,600 $9,900.00
The equipment was sold for $8,500
net gain or loss will be the selling price - book value
=$8,500 - $9,900
=- $1,400
A loss of $1400
A debt-free firm has total sales of $22,980, costs of $14,715, and depreciation of $6,045. What is the operating cash flow at a tax rate of 23 percent?
Answer:
$7,754.4
Explanation:
Given the above information, first we need to calculate profit before tax
Profit before tax = Total sales - Cost of goods sold - depreciation
= $22,980 - $14,715 - $6,045
= $2,220
Profit before tax = $2,220
Tax rate = 23%
Then, we will calculate
Net profit before tax
= Profit before tax × ( 1 - tax rate)
= $2,220 × ( 1 - 23%)
= $1,709.4
Then,
Operating cash flow
= Net profit + depreciation
= $1,709.4 + $6,045
= $7,754.4
Jody and Buster both produce nuts and coffee. They each prefer to consume a diet that is half nuts and half coffee. Both have access to the same resources. If Jody focuses on producing only coffee, she can produce 20 pounds of coffee in a week. If she only produces nuts, she can produce 40 pounds of nuts in a week. Buster can produce a maximum of 15 pounds of coffee in a week. He could also choose to produce only nuts, in which case he can produce 20 pounds of nuts a week.
Who has an absolute advantage in nut production? Choose one:
a. Brad has an absolute advantage in coffee, and Jody has an absolute advantage in nuts.
b. Jody has an absolute advantage in coffee, and Brad has an absolute advantage in nuts.
c. Jody has an absolute advantage in both coffee and nuts.
d. Brad has an absolute advantage in both coffee and nuts.
Answer:
c
Explanation:
A person has absolute advantage in the production of a good or service if it produces more quantity of a good when compared to other people.
Jody can produce either 20 pounds of coffee or 40 pounds of nuts
Buster can produce either 15 pounds of coffee or 20 pounds of nuts
It can be seen that Jody produces more pounds of both goods. Thus Jody has an absolute advantage in the production of both goods
Suppose that Sean, an economist from an AM talk radio program, and Yvette, an economist from a public television program, are arguing over saving incentives. The following dialogue shows an excerpt from their debate:
Neha; A popular topic for debate among politicians as economists is the idea of providing government assistance for health.
Lorenzo: I think it is oppressive for the government tax people Who take care of themselves in order to pay for health insurance for those Who are obese.
Neha: I disagree. I think government funding of health insurance is useful to ensure basic fairness.
The disagreement between these economists is most likely due to________
Despite their differences, with which proposition are two economists chosen at random most likely to agree?
a. Tariffs and import quotas generally reduce economic welfare.
b. Lawyers make up an excessive percentage of elected officials.
c. Minimum wage laws do more to harm low-skilled workers than help them.
Answer:
The disagreement between these economists is most likely due to________
values judgement.
Despite their differences, the proposition which two economists chosen at random most likely to agree on is:
b. Lawyers make up an excessive percentage of elected officials.
Explanation:
While economists tend to mainly disagree over differences in values and scientific judgment, they also disagree due to differences in perception over reality. They tend to disagree over methods and conclusions reached by different economists but tend to agree on non-economic issues whenever they are presented to them for assessment.
g Red Sun Rising just paid a dividend of $2.80 per share. The company said that it will increase the dividend by 40% and 10% over the next two years, respectively. After that, the company is expected to increase its annual dividend at 5%. If the required return is 12%, what is the stock price today
Answer:
The stock price today is $58.50
Explanation:
First, we need to determine the dividends for each year
Year _____Working _________ Dividend
0________________________ $2.80 per share
1________$2.80 x ( 1 + 40% )___$3.92 per share
2________$3.92 x ( 1 + 10% )___$4.312 per share
3________$4.312 x ( 1 + 5% )___$4.5276 per share
Now we need to calculate the present value of each years dividend to calculate the value of stock
Year _____Working ___________________ PV of Dividend
1________$3.92/( 1 + 12% )^1_____________ $3.50
2________$4.312/( 1 + 12% )^2____________$3.4375
3________[$4.5276/(12%-5%)]/( 1 + 12% )^2__ $51.5625
Now sum all of the present vlue of dividend to calculate the stock price
Stock Price today = $3.50 + $3.4375 + $51.5625 = $58.50
Select the correct answer.
Student council requires that you be able to lead already.
A True
B. False
Answer:
A. True
Explanation:
In order to be on student council, you must already know how to lead. Student council isn't you learn to lead. It's meant to show others how to lead.
Answer:
A. True!
Explanation:
Student council requires you to already know how to lead because they are not going to teach you!
1.1) The beta coefficient of Gans Ltd share is 0.9 and Handy Ltd share S has a beta of
1.8. The expected return on an average stock is 10%, the risk free rate is 4%. By how much
does the required return on the riskier stock exceed the required return on the less risky
stock?
You are given the following information on Daffy Ltd share and are required to answer the
questions that follow
State of economy
Boom
Normal
Bust
Probability
0.25
0.40
0.35
Return(%)
18
5
(2)
The risk free rate of interest is 4%, the return on the market is 10% and the beta of the firm is
1.2.
a) Calculate the expected return.
b) Calculate the required retum.
c) Explain whether the above asset should be purchased
Answer:
1. The riskier stock is the one with the higher beta which is Handy Ltd.
Use CAPM to calculate the required return on both stocks. The formula is:
Required return = Risk free rate + beta * (market return - risk free rate)
Gans Ltd Stock Handy Ltd Stock
= 4% + 0.9 * ( 10% - 4%) = 4% + 1.8 * (10% - 4%)
= 9.4% = 14.8%
Difference = 14.8 - 9.4
= 5.4%
2. a. Expected return
Expected return is a weighted average of the returns given the probability of the different state of economies.
= (0.25 * 18%) + (0.4 * 5%) + (0.35 * -2%)
= 0.045 + 0.02 - 0.007
= 5.8%
b. Required return
Using CAPM like in question 1:
Required return = Risk free rate + beta * (market return - risk free rate)
= 4% + 1.2 * ( 10% - 4%)
= 11.2%
c. The asset should not be purchased because its expected return is lower than its required return. This means that the stock is not providing enough return for the risk incurred.
We can conclude from the above information that any rational, risk-averse investor would be better off adding Security AA to a well-diversified portfolio over Security BB. a. True b. False
Answer: False
Explanation:
First calculate the expected value for both securities:
Security AA:
= (0.2 * 30%) + (0.6 * 10%) + (0.2 * -5%)
= 6% + 6% + (-1%)
= 11%
Security BB
= (0.2 * -10%) + (0.6 * 5%) + (0.2 * 50%)
= -2% + 3% + 10%
= 11%
They both have the same expected return so the investor will be indifferent. Statement is therefore false.
Hakara Company has been using direct labor costs as the basis for assigning overhead to its many products. Under this allocation system product A has been assigned overhead of $2.82 per unit while product B has been assigned $13.58 per unit. Management feels that an ABC system will provide a more accurate allocation of the overhead costs and has collected the following cost pool and cost driver information:
Cost Pools Activity Costs Cost Driver Driver Consumption
Machine setup $ 158,000 Setup hours 2,000
Materials handling 112,000 Pounds of materials 16,000
Electric power 25,000 Kilowatt-hours 25,000
The following cost information pertains to the production of A and B, just two of its many products:
A B
Number of units produced 5,000 10,000
Direct materials cost $32,000 $41,000
Direct labor cost $41,000 $38,000
Number of setup hours 100 200
Pounds of materials used 1,000 1,000
Kilowatt-hours 2,000 4,000
Use activity-based costing to determine a unit cost for each product. (Round your final answers to 2 decimal places.)
Answer:
Unitary cost A : $17.98
Unitary cost B : $10.58
Explanation:
First, we need to calculate the predetermined overhead rate for each activity.
The predetermined manufacturing overhead rate = Total estimated overhead costs for the period / Total amount of allocation base
Machine setup
= 158,000/2,000
= $79 per setup hour
Materials handling
= 112,000/16,00
= $7 per pound
Electric power
= 25,000/25,000
= $1 per kilowatt.
Now, we can allocate overhead to each product
Allocated MOH = Estimated manufacturing overhead rate × Actual amount of allocation base
Product A
Machine setup
= $79 × 100
= $7,900
Materials handling
= $7 × 1,000
= $7,000
Electric power
= $1 × 2,000
= $2,000
Total = $16,900
Product B
Machine setup
= $79 × 200
= $15,800
Materials handling
= $7 × 1,000
= $7,000
Electric power
= $1 × 4,000
= $4,000
Total = $26,800
Finally, the total cost and the unitary cost
Product A.
Total cost
= Direct materials + Direct labor + Allocated MOH
= $32,000 + $41,000 + $16,900
= $89,900
Unitary cost
= Total cost/Number of units produced.
= $89,900/5,000
= $17.98
Product B
Total cost
= Direct materials + Direct labor + Total allocated MOH
= $41,000 + $38,000 + $26,800
= $105,800
Unitary cost
= Total cost/Number of units produced
= $105,800/10,000
= $10.58
Based on a reading of the following, which law led to the establishment of the agency that monitors food and drugs and
has the power to recall products?
Clayton Act of 1914
o Federal Food and Drug Act of 1906
o Consumer Product Safety Act of 1972
o Federal Trade Act of 1914
Answer:
Consumer Product Safety Act of 1972
Explanation:
Answer:
Federal Food and Drug Act
Explanation:
The body that has the power to prescribe the accounting practices and standards to be employed by companies that fall under its jurisdiction is the
Answer:
Security and Exchange Commission (SEC).
Explanation:
The Securities and Exchange Commission (SEC) is a governmental agency saddled with the sole responsibility of regulating the securities or capital markets, as well as protecting investors in a country.
In the United States of America, the Securities and Exchange Commission (SEC) as an independent government agency was established under the Securities Act of 1933 and the Securities and Exchange Act of 1934 of the United States of America. It has the power to propose securities rules and regulations, and enforce federal securities law in the securities market.
The body that has the power to prescribe the accounting practices and standards to be employed by companies that fall under its jurisdiction is the SEC.
While external factors and internal factors often influence decisions on the individual level, the utilization of logic as a decision-making perspective is best defined as
Answer:
Normative.
Explanation:
Environmental scanning is a management strategy that focuses on systematically acquiring informations about occasions, trends, events or patterns through surveys and analysis of these information in an organisation's external and internal environment. The informations acquired through environmental scanning is then used by the executive management in strategically planning the organisation's future and exploitation of available opportunities for the success of the organization.
The internal environmental scanning offers an organization strength and weakness while the external environmental scanning provides information about opportunities and threats.
Generally, the external environmental scanning gives an overview of the opportunities in the market as well as potential threats to an organization.
Hence, while external factors and internal factors often influence decisions on the individual level, the utilization of logic as a decision-making perspective is best defined as normative. Thus, it is mainly associated with morality and preventing negativity or things considered bad.
The first step in the decision-making process requires you to do what?
Identify the decision that needs to be made and determine the desired goal.
Set aside some time to reflect on your career path.
Chart the decisions your competitors have made in the past three years.
Create a survey and send it to everyone in your company.
Answer:
think.....all you have to do is think XD
but in all honesty the answer is a determine your descision
An organization that is global within two years of its inception with a major focus on foreign markets rather than its domestic market can best be described as a
Answer: born global
Explanation:
An organization that is global within two years of its inception with a major focus on foreign markets rather than its domestic market can be said to be born global.
Since the day such organization is established, they seek to gain competitive advantage over their rivals by using latest technologies and selling their products in different countries.
The United States imports a lot of cars, despite having its own auto industry. Each of the following statements are arguments some people could make for restricting imports of cars into the United States. For each statement, identify the threat to the U.S. industry that the argument is trying to counter, and identify the opportunities that would be given up if the argument wins.
Choose the correct answer:
a. "Foreign manufacturers are offloading their cheap cars onto the U.S. market. We should stop this so that consumers have access to higher-quality U.S. cars."
-National security requires that strategically important goods be produced domestically.
-Protection can help infant industries develop.
-Foreign competition may lead to job losses.
-Anti-dumping laws prevent unfair competition.
-Trade should not enable foreign firms to skirt U.S. regulations.
b. "We must foster the innovation of small car companies, like Tesla. Allowing foreign electric vehicle manufacturers to sell cars in the U.S. will eliminate any chance of creating those cars domestically."
-Foreign competition may lead to job losses.
-Anti-dumping laws prevent unfair competition.
-National security requires that strategically important goods be produced domestically.
-Trade should not enable foreign firms to skirt U.S. regulations.
-Protection can help infant industries develop.
c. "You should not buy a car from Nissan or BMW! You are putting people here out of a job."
-Foreign competition may lead to job losses.
-Anti-dumping laws prevent unfair competition.
-National security requires that strategically important goods be produced domestically.
-Trade should not enable foreign firms to skirt U.S. regulations.
-Protection can help infant industries develop.
Answer:
a. "Foreign manufacturers are offloading their cheap cars onto the U.S. market. We should stop this so that consumers have access to higher-quality U.S. cars."
-Anti-dumping laws prevent unfair competition.
DUMPING REFERS TO GOVERNMENTS SUBSIDIZING EXPORTS IN ORDER TO LOWER THEIR PRICES. THIS IS AN ILLEGAL PRACTICE NOT ACCEPTED BY THE WORLD TRADE ORGANIZATION.
b. "We must foster the innovation of small car companies, like Tesla. Allowing foreign electric vehicle manufacturers to sell cars in the U.S. will eliminate any chance of creating those cars domestically."
-Protection can help infant industries develop.
EVEN THOUGH CAR ARE MANUFACTURED IN THE US SINCE MANY YEARS AGO, TESLA AND OTHER ELECTRIC CAR MANUFACTURERS ARE STILL AN INFANT INDUSTRY.
c. "You should not buy a car from Nissan or BMW! You are putting people here out of a job."
-Foreign competition may lead to job losses.
JOBS MAY BE AT RISK WHEN A DOMESTICALLY PRODUCED GOOD IS REPLACED BY AN IMPORTED GOOD
Select the correct answer.
Workers like authoritarian leaders best.
A. True
B. False
Answer:
A
Explanation:
Ramona Company has the following labor-related data. Standard labor hours for output: 15,000 hours Standard labor rate: $10 per hour Actual labor rate: $8 per hour Actual labor hours: 17,500 hours Given this information, the labor EFFICIENCY variance is
Answer:
$25,000 UnfavourableExplanation:
The labor Efficiency variance = ( Actual labor Hrs × Standard rate) - ( Standard labor Hr × Standard rate)
= ( 17500 × 10) (15000 × 10)
= 175000 - 150000
= $25,000 UnfavourableProvided that the standard cost of actual labor hour is greater than the standard labor cost. Then, the variable is unfavorable.
The two common stock ratios are the price–earning (PE) ratio and the
ratio. The latter ratio is used to calculate the PE ratio by dividing the
of equity shares by it.
Answer:
The two common stock ratios are the price–earning (PE) ratio and the earnings per share (EPS) ratio. The latter ratio is used to calculate the PE ratio by dividing the price of equity shares by it.
Explanation:
The Price-earnings ratio measures investors' assessments of an entity's future earnings. It is determined by obtaining the share price of the company's stock and dividing it by the EPS. It is expressed in number of times of the EPS that investors are willing to pay for a share in the company's equity. The earnings per share (EPS) indicates the profit or income which a company generates for each share. It is determined by dividing a company's net profit by the number of outstanding common shares. It is widely used to estimate corporate value.
Answer:market price
Explanation:
