At what price would you expect to find the stock selling

Assignment Help Accounting Basics
Reference no: EM132106938

Question - Assume that two companies in the same industry have equal earnings. Why might these companies have different price-earnings ratios? If a company has a price earnings ratio of 20 and reports earnings per share for the current year of $4, at what price would you expect to find the stock selling on the market?

Reference no: EM132106938

Questions Cloud

What is the amount of subscription revenue : The company uses the accrual method of accounting. By the end of December, what is the amount of Subscription Revenue that has been earned
Differentiate between long run and short run : Create a diagram, chart, or some other illustration that clearly presents the differences and similarities between long and short run costs.
Calculate the amount of total assets balance : Sharon contributed $14,000 into a new checking account for the business and recorded capital contribution. Calculate the amount of total assets balance
Relevant statute and case law : Answer the following question with reference to any relevant statute and case law.
At what price would you expect to find the stock selling : Assume that two companies in the same industry have equal earnings. At what price would you expect to find the stock selling on the market
What is the average length of the pick-up line : What is the average length of the “place order and pay the cashier” line? What is the average length of the “pick-up” line?
Pros and cons of trans-pacific partnership trade agreement : How do the activities of data mining and predictive analytics work together? What are the pros and cons of the Trans-Pacific Partnership trade agreement?
What was the outcome : This could be a business meeting, church meeting, or even a family budget meeting. How were the costs analyzed? What was the outcome?
Paris and spends several months of the year : Harry has a house in London and a house in Paris and spends several months of the year in each.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd