1.Which statement describes the difference reported P/E ratios for an industry sector where the average ratio is 15. The highest ratio is 2000 and the lowest is 0.2. Reported P/E ratios are calculated using earnings from both discontinued and continuing operations. A. The firm with highest P/E ratio reported losses from discontinued operations and the firm with the lowest P/E ratio reported profits from discontinued operations. B. The firm with highest P/E ratio reported higher than expected earnings whereas the firm with the lowest P/E ratio reported lower than expected earnings. C.The firm with highest P/E ratio reported loss from discontinued operations whereas the firm with the lowest P/E ratio didn’t. D.The firm with the highest P/E ratio reported profits from discontinued operations and losses from discontinuous operations. E.None of the options provided.
1.Which statement describes the difference reported P/E ratios for an industry sector where the average ratio is 15. The highest ratio is 2000 and the lowest is 0.2. Reported P/E ratios are calculated using earnings from both discontinued and continuing operations.
A. The firm with highest P/E ratio reported losses from discontinued operations and the firm with the lowest P/E ratio reported profits from discontinued operations.
B. The firm with highest P/E ratio reported higher than expected earnings whereas the firm with the lowest P/E ratio reported lower than expected earnings.
C.The firm with highest P/E ratio reported loss from discontinued operations whereas the firm with the lowest P/E ratio didn’t.
D.The firm with the highest P/E ratio reported profits from discontinued operations and losses from discontinuous operations.
E.None of the options provided.
2.From the following data, estimate the value of an index that consists the bottom 2 stocks by market capitalization
Stock Share price Number of outstanding shares
Alpha Ltd $3.00 10000
Beta Ltd $5.00 20000
Omega Ltd $5.00 1000
Delta Ltd $7.00 10000
A.5.150 or 5.150 B.5.823 or 5.823 C.5.692 or 5.692 D.2.334 or 2.334 E. None of the options provided
Step by step
Solved in 4 steps
