Business, 16.10.2020 15:01 ohgeezy

Company XYZ closed at $ per share with a P/E ratio of . Answer the following questions. a. How much were earnings per share? b. Does the stock seem overpriced, underpriced, or about right given that the historical P/E ratio is 12-14?

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Answer from: carts66

Hello your question is incomplete below is the complete question

Company XYZ closed at $53.02 per share with a P/E ratio of 14.02 .

Answer :

A) $3.79

B) underpriced

Explanation:

Given data:

Closing price ( price per share ) = $53.02

P/E ratio = 14.02

A ) How much earnings per share

Earnings per share = price per share / (P/E) ratio

= 53.02 / 14.02 = $3.79

B) To check if the stock is overpriced, underpriced or about right

i) At P/E ratio = 12

Earnings per share = 53.02 / 12 = $4.43

Earning yield = ( earning per share / market value ) * 100

= ( 4.43 / 53.02 ) * 100 = 8.33%

ii) At P/E ratio = 13

Earnings per share = 53.02 / 13 = $4.09

Earning Yield = ( earning per share / market value ) * 100

= (4.09 / 53.02 ) * 100 = 7.69%

iii) At P/E ratio = 14

Earnings per share = 53.02 / 14 = $ 3.8

Earnings yield = ( earning per share / market value ) * 100

= ( 3.8 / 53.02 ) * 100 = 7.14%

The average of the earning yield given P/E ratio is 12-14

= ( 8.33 + 7.69 + 7.14 ) % / 3 = 7.72%

while The earning yield given P/E ratio is 14.02

= ( earning per share / market value ) * 100

= ( 3.79 / 53.02 ) * 100 = 7.12%

Therefore the stock is underpriced

Answer from: Quest

bd = 9 cm

step-by-step explanation:

in a 30°-60°-90° triangle, the ratio of side lengths is 1 : √3 : 2. that is, the longest side (hypotenuse) is twice the length of the shortest side.

all of the triangles in your geometry are 30°-60°-90° triangles. ac is the hypotenuse of δacd, and the short side of δabc.

the short side ad of δacd will be half the length of ac, so 3 cm. the hypotenuse ab of δabc will be twice the length of ac, so 12 cm. segment bd is the difference of the lengths ab and ad, so is

bd = ab -ad

bd = 12 cm - 3 cm = 9 cm

comment on side length ratios

you can figure the ratios of side lengths in a 30°-60°-90° triangle by considering the trig ratios of the angles. or you can figure the length of the altitude of an equilateral triangle of side length 2 using the pythagorean theorem.

Answer from: Quest

the answerr would be 1

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Company XYZ closed at $ per share with a P/E ratio of . Answer the following questions. a. How much...

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