Question: The price/earnings ratios of four companies from different industries are: Company___________________ P/E Ratio Amazon.com.90 Microsoft..22 Toyota Motors..11 Whole Foods Market.34 Required: What factors might explain

The price/earnings ratios of four companies from different industries are:

Company___________________ P/E Ratio

Amazon.com…………………………….90

Microsoft………………………………..22

Toyota Motors…………………………..11

Whole Foods Market…………………….34

Required:

What factors might explain the difference in the P/E ratios of these companies?

Step by Step Solution

★★★★★

3.37 Rating (153 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

The priceearnings PE ratio is a financial metric used to evaluate the value of a company indicating how much investors are willing to pay for a dollar of earnings The differences in PE ratios among co... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

The price/earnings ratios of four companies from different industries are: Company ........ P/E Ratio Amazon.com ...... 2,763 Microsoft ........ 16 Toyota Motors ...... 13 Whole Foods Market .... 41...

The price/earnings ratios of four companies from different industries are: Company P/E Ratio Amazon.com..........................882.7 Microsoft...............................35.2 Toyota...

The price/earnings ratios of four companies from the same industry are: Company ....... P/E Ratio Fresh Market ....... 49 Kroger ......... 23 Safeway ........ 9 Whole Foods Market .... 41 Required:...

1. Find the probability of obtaining between 40 and 60 heads when tossing a coin 100 times. 2. Find the probability of obtaining 6s between 20 and 40 times when rolling a die 200 times.

Use the data from Exercise 12 "Getting a Job." Data From Exercise 12 In a survey, subjects seeking a job were asked to whom they should send a thank-you note after having a job interview. Results...

=+2. Forecasting involves a. purchasing and promotion b. pricing and ticket sales c. predicting costs and revenue d. planning, distribution, price, and advertising

3. Identify a consulting firm that offers I/O psychology and/or related services to organizations and learn about the types of services they provide. The majority of these firms maintain a strong Web...

A professional diver performs a dive from a platform 10 m above the water surface. Estimate the order of magnitude of the average impact force she experiences in her collision with the water. State...

In the problem below I don't understand why the bank would be involved in the first place. The local electronics store is offering a promotion "1 year: same as cash" meaning that you can buy a TV...

If I am looking at buying a home with an asking price of $250,000.Since the market is hot, I plan to put in an offer for the full asking price.I also plan to put a $40,000 down payment and finance...

a 3 ) Using the Emulation kit, write assembly code To EMU 8 0 8 6 that obtains the following: When the first switch is pressed ( become 1 ) the last digit of your registration number will appear on...

Find five interesting facts in Tables 1.4 and 1.5. DATA FROM TABLE 1.5 TABLE 1.4 Broad Categories of Exports of Selected Countries, 2010 SITC Code Product United United States Germany Japan China...

Use Table 1.1 to find three countries that have gone from being mostly closed to being open from 1980 to 2009. Also, find three countries where the reverse has happened. What has been the implication...

Use the data in Table 6.7 to compare U.S. protectionist policies with those of Japan. In what sectors are protection levels relatively equal? Where do they differ? Try to explain these patterns....

Customer demand for some finished good is forecast at 1,000 units for January, 2,000 units for February, and 3,000 units for March. If the company that produces this finished good has nothing in...

Consider the random phasor sum of Section 2.9 with the single change that the phases $\phi_{k}$ are uniformly distributed on $(-\pi / 2, \pi / 2)$. Find the following quantities: \(\bar{r},...

uck! 10 pts Question 4 A recent college graduate has been saving money for the past 5 years to buy his dream car. He has religiously deposited $6,400 at the end of each year and is making his last...

Prove that if Σ an is absolutely convergent, then a. an

You have researched your dream around-the-world vacation and determined that the total cost of the vacation will be $20,000. You feel you can earn an APR of 9.5 percent compounded monthlyand plan to...

As a senior partner at one of the nations largest public accounting firms, you serve as chair- person of the firms financial reporting policy committee. You are also the firms chief spokes- person on...

The following excerpts are taken from the annual report of J. Crew Group, Inc. At January 29, 2005 and January 28, 2006, 92,800 shares of Series A preferred stock and 32,500 shares of Series B...

Rite Aid Corporation operates retail drugstores in the United States. It is one of the country's largest retail drugstore chains with 3,333 stores in operation as of March 3, Year 3. The company's...

Calculate the purchase price (flat) of each of the $1000 face value bonds

A $5000 bond was sold for $4860 (flat) on September 17. If the bond pays $200 interest on June 1 and December 1 of each year, what price (expressed as a percentage of face value) would have been...

Calculate the purchase price (flat) of each of the $1000 face value bonds

Question: The price/earnings ratios of four companies from different industries are: Company___________________ P/E Ratio Amazon.com.90 Microsoft..22 Toyota Motors..11 Whole Foods Market.34 Required: What factors might explain

Step by Step Solution

Students Have Also Explored These Related Finance Questions!

Related Book