What does it mean to have a Price- earnings ratio that is higher or lower than the norm?

Q: What is the difference between price and cost? Is there any relation connected them? Which one is…

A: PRICE  1. Price is what you pay for purchasing goods or availing the services. Also called sale…

Q: What is the Importance of the Profit Ratio?

A: Profit ratio: Profit ratio is utilized to assess the corporation's capacity to make revenue as…

Q: Define price earnings ratio.

A: P/E Ratio: Price Earnings ratio is the ratio of company’s current share price to the company’s…

Q: How does the lower of cost or market relate to profit margins?

A: Answer: The lower cost or market implies that, depending on how historical costs and market costs…

Q: From the following: What is the industry average price–earnings ratio? What is Ragan’s…

A: The industry average PE ratio can be calculated as follows : P/E ratio = Price earningsPutting…

Q: What is the difference between a Moving Average Price and a Standard Price?

A: A Moving Average Price (MAP) is a method of calculating the cost of goods sold by averaging the…

Q: Define the term s price-earnings ratio?

A: Financial Ratios: Financial ratio analysis expresses the relationships between different items…

Q: Describe following:* Market approach* Income approach* Cost approach

A: Market Approach:   Market approach is a method used to assess the value of an asset depending on the…

Q: What does price/earnings ratio tell you?

A: Price-to-Earnings Ratio shows relation between entity’s stock price relative to earnings made on…

Q: What is the Price Earnings Ratio?

A: The price-earnings ratio is the ratio which helps the investor to determine the market value on the…

Q: What's the difference between the profit margin and gross margin ratio?

A: Ratio is the arithmetic relationship between two figures. Accounting ratios shows the…

Q: Revenue: Product Service Total revenue Cost of revenue: Product Service Total cost of revenue.…

A: Gross profit margin is the ratio which is used to determine the percentage of gross profit with…

Q: Is it good, fair or bad if price earning ratio is higher than industry average in terms of…

A: In terms of cross-sectional evaluation, a higher price-earnings ratio (P/E ratio) than the industry…

Q: On what concept is the price-earnings multiple valuation approach based?

A: Price earning ratio is computed by dividing the market price of the share by the earnings per share.

Q: Why is the basic earning power ratio useful?

A: Basic earning power ratio shows the relationship between earnings before interest and taxes and…

Q: What does the price earning ratio indicate?

A: Price to earnings ratio (P/E ratio) compares the price with earnings per share. It will be…

Q: Discuss some financial variables that affect the price-earnings ratio?

A: The price-Earning Ratio refers to the ratio between earning per share and the current market price…

Q: What is the reason that makes gross profit margin increases and decreases?

A: The gross profit margin is calculated by deducting the cost of goods sold from the sales revenue and…

Q: Is the cost of sales under weighted average always greater than the cost of sales in FIFO?

A: as FIFO method of inventory valuation goods purchased first will be used first or sold first. The…

Q: ($ illions) Revenues $ 100 Cost of Goods Sold 60 Gross Profit 40 Operating Expense 20 Earnings…

A: Profit margin ratio is the percentage measure of the profit of the entity concerning the sales…

Q: What is gross profit margin?

A: The method to analyze the performance of a company through its profitability is term as the…

Q: What is the gross profit margin? Higher ratio or lower ratio

A: Ratio analysis can be defined as the comparative analytical tool. It helps to determine the…

Q: In what sense is the WACC an average cost? A marginal cost?

A: Weighted average cost of capital is the firm's cost of capital which is based on proportion of each…

Q: What does the price-earnings ratio measure?

A: Formula Price earning ratio = Market Price per shareEarnings per share

Q: E3-18 (Static) Analyzing the Effects of Transactions Using T-Accounts and Interpreting the Net…

A: In order to determine the net profit margin ratio, the net profit is required to be divided by the…

Q: What does the price-to-earnings ratio (P/E) tell you?

A: Ratio analysis is a process under which we evaluate the performances of company and its competitor…