Assume that a firm's earnings per share (EPS) are expected to be $1.35 next year and that analysts have determined that an appropriate forward-looking multiple is 20 times the projected earnings. What should the stock price be?
A) $11.35
B) $20.00
C) $27.00
D) $28.75
C
Explanation: C) Price = EPS * multiple = $1.35 * 20 = $27.00.
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Answer the following statement true (T) or false (F)
The percentage-of-completion method
a. recognizes a portion of the contract price as revenue during each accounting period of construction. b. bases the amount of revenue, expense, and income on the proportion of total work performed during the accounting period. c. measures the proportion of total work carried out during the accounting period either from engineers' estimates of the degree of completion or from the ratio of costs incurred to date to the total costs expected for the entire contract. d. all of the above. e. none of the above.
The notion of the "long tail" is most aptly applied to sales in which industry?
A. Athletic shoes B. Movies and music C. Flower bouquets D. Magazine subscriptions E. None of the Above
When graphed, a typical variable cost appears as:
A. a vertical line. B. a horizontal line. C. a diagonal line that slopes downward to the right. D. a diagonal line that slopes upward to the right. E. a u-shaped line.