Answer:
The price per share should be $22.5
Explanation:
The price earnings multiple or P/E tells us how much price the investors are willing to pay for $1 earnings of the company.
We first need to calculate the earnings per share of the company.
Earnings per share = Net Income / Number of outstanding common shares
Earnings per share = 1500000 / 1000000 = $1.5 per share
Using the P/E for the industry, the price per share of Flintstone should be,
P/E = Price per share / Earnings per share
15 = Price per share / 1.5
15 * 1.5 = Price per share
Price per Share = $22.5
Answer:
Direct, upward sloping
Explanation:
Supply refers to the quantities of goods or services that firms are willing to sell to the markets are a specific price. As per the law of supply, an increase in prices leads to an increase in the quantity supplied. Therefore, the relationship between the price and quantity supplied is direct. Firms prefer to supply more products to the markets at higher prices because they will make more profits.
The supply curve is a graphical presentation of the relationship between price and quantity supplied. The supply curve is upward sloping. It originates from the bottom left corner, showing how quantities vary along the curve at different prices. Quantity supplied increases as the price rise.
Answer:
the current stock of the value today is $25
Explanation:
The computation of the current stock of the value today is shown below:
Next year dividend D1 = $3
growth rate g =6% forever
rate of return = 18%
So,
Current Stock Price P = D1 ÷ (r - g)
=3 ÷ (18% - 6%)
= 3 ÷ 12%
= 3 ÷ 0.12
= $25
Hence, the current stock of the value today is $25
A. economy weakness go upward then downward hope that helps