Q1. (5 points) A stock's price-earnings (P/E) ratio is the per-share price of its stock divided...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Q1. (5 points) A stock's price-earnings (P/E) ratio is the per-share price of its stock divided by the company's annual profit per share. The P/E ratio for the stock market as a whole is used by some analysts as a measure of whether stocks are cheap or expensive, in comparison with other historical periods. Here are some annual P/E ratios for the S&P 500: Year P/E 1980 7.90 1981 8.36 1982 8.62 1983 12.45 1984 9.98 1985 12.32 1986 16.42 1987 18.25 1988 12.48 1989 13.48 1990 15.46 1991 20.88 1992 23.70 1993 22.42 1994 17.15 1995 16.42 1996 19.08 1997 21.88 1998 28.90 1999 31.55 Calculate the sample mean and variance. You can use Microsoft Excel to calculate them. But you need to write the appropriate formula here that you used to calculate them. Q1. (5 points) A stock's price-earnings (P/E) ratio is the per-share price of its stock divided by the company's annual profit per share. The P/E ratio for the stock market as a whole is used by some analysts as a measure of whether stocks are cheap or expensive, in comparison with other historical periods. Here are some annual P/E ratios for the S&P 500: Year P/E 1980 7.90 1981 8.36 1982 8.62 1983 12.45 1984 9.98 1985 12.32 1986 16.42 1987 18.25 1988 12.48 1989 13.48 1990 15.46 1991 20.88 1992 23.70 1993 22.42 1994 17.15 1995 16.42 1996 19.08 1997 21.88 1998 28.90 1999 31.55 Calculate the sample mean and variance. You can use Microsoft Excel to calculate them. But you need to write the appropriate formula here that you used to calculate them.
Expert Answer:
Answer rating: 100% (QA)
To calculate the sample mean and variance for the given data you ca... View the full answer
Related Book For
Financial Reporting And Analysis
ISBN: 9781260247848
8th Edition
Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer
Posted Date:
Students also viewed these economics questions
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...
-
Read the case study "Southwest Airlines," found in Part 2 of your textbook. Review the "Guide to Case Analysis" found on pp. CA1 - CA11 of your textbook. (This guide follows the last case in the...
-
Find f. f(x) = f'(x) = 12x + X x > 0, f(1) = -4
-
Restrict the domain of the function f to an interval on which the function is increasing, and find f-1 on that interval. 1. f (x) = 2(x 4)2 2. f (x) = |x - 2|
-
A friend in your class is confused and asks for your help in understanding cash equivalents: Say a company invests $50,000 in a 60-day certificate of deposit. Since the company obviously used cash to...
-
Explain the purpose, use, and limitations of a derivative shareholder action.
-
Amortization schedule for note where stated interest rate differs from historical market rate of interest. Hager Company acquires a computer from Volusia Computer Company. The cash price (fair value)...
-
In a high-profile criminal trial, the defendant alleges that their confession was coerced by law enforcement officers during interrogation. How might the court assess the admissibility of the...
-
A nutrition plan app has a subscription that costs $10/month. The following chart gives average historical renewal rates for subscribers based on how many months they have been a subscriber. Month 1...
-
Select the correct name and chemical formula for the precipitate that forms when the following reactants are mixed. CuCl 2 ( aq ) + Na 2 CO 3 ( aq )
-
Cheryl has a problem. She is an employee of a company. Cheryl likes to perpetrate fraud and enjoys the challenge of not getting caught. When she commits the fraud, she receives a "cheaters" high....
-
On January 1st of this year, Maya purchased a newly issued zero-coupon bond for $540. The bond matures in 15 years and is priced to yield 4.19%. What amount of income must Maya recognize on her tax...
-
INTERNAL GROWTH RATE SALES 15,000 COSTS 6000 NET INCOME 9000 BALANCE SHEET ASSETS 100,000 DEBT 20,000 EQUITY 80,000 TOTAL ASSETS 100,000 TOTAL D + E 100,000 ASSUME THAT LAST YEAT TOTAL ASSETS =...
-
"What is the role of budgeting in promoting innovation and strategic growth initiatives? Additionally, how does the allocation of resources for research and development, new product development, and...
-
The flow through an artificial kidney is described by three dimensionless groups: Re (pvd/u). Eu (Ap/v2p), and the reduced length (1/d). Use these groups to design a model for flow through an...
-
Syarikat Tom has common equity of RM40 million. The companys stock price is RM80 per share and its market/book ratio is 4.0. How many unit of stock does the company have outstanding? Select one: a....
-
Write a paper about the Working relationship in the organization- collaboration within and outside the organization
-
Cephalon Inc. issued $750 million of zero-coupon convertible notes. Because the notes were issued at par, meaning that Cephalon received $750 million cash for the notes, they have a zero...
-
Clovis Company recently issued $500,000 (face value) bonds to finance a new construction project. The companys chief accountant prepared the following bond amortization schedule: Required: 1. Compute...
-
The management of Banciu Corporation provides you with comparative balance sheets at December 31, 20X1, and December 31, 20X0, appearing below. Supplemental Information: a. The following table...
-
What are the main phases of a design review?
-
Classify these Bluetooth layers using the OSI model: a. baseband; b. L2CAP; c. RFCOMM.
-
Use the power state machine of Fig. 8.12 to determine the energy used in these use cases: a. idle 1 s; receive 10 ms; idle 0.1 s; transmit 5 s; b. sleep 1 min; receive 50 ms; idle 0.1 s; receive 100...
Study smarter with the SolutionInn App