Question

Insider trading by executives of a company is completely legal if reported to the SEC prior...

Insider trading by executives of a company is completely legal if reported to the SEC prior to making the transaction.

True

False

The ____________________________ is calculated by dividing the stock’s P/E ratio by its expected 12 month growth rate

earnings per share

return on equity

Price to Earnings ratio

Peg Ratio
Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

1. Insider trading related to stocks are legal only if they are reported to the securities and exchange commission before they are bought and sell so insider trading by executive of a company's legal, if it is reported to security exchange commission prior to making the transaction.

The given statement is TRUE.

2. Price to earning in respect of growth will be calculated by PEG ratio and it is always calculating the price to earning ratio of a company and it is using 12 month growth rate in order to discount it.

this ratio is alternative of price to earning ratio and it is better than price to earning ratio because it also accounts for the growth of the company.

Correct answer would be option ( d) PEG ratio.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Bowles Company granted options on January 1, 2017, permitting executives to purchase 800,000 of the company’s...
Bowles Company granted options on January 1, 2017, permitting executives to purchase 800,000 of the company’s $1 par common stock within the next five years, but not before December 31, 2020 (the vesting date). The exercise price is set at the stock’s market price on the date of grant, $40 per share. The fair value of the options, estimated by an appropriate option pricing model, is $5 per option. At 12/31/17, 90% of the options are estimated to vest, and...
UVA Inc. is a company that manufactures and retails eye wear. The firm reported $ 50...
UVA Inc. is a company that manufactures and retails eye wear. The firm reported $ 50 million in after-tax operating income on revenues of $ 500 million in the most recent year. The company has 50 million shares outstanding, trading at $ 8 per share, and $ 150 million in debt at a current market interest rate of 8%; the corporate tax rate is 40%. The firm also has a cash balance of $ 50 million. The stock trades at...
Cassidy Brooks is a freelance financial analyst currently residing in Phoenix, Arizona. A recent merger she...
Cassidy Brooks is a freelance financial analyst currently residing in Phoenix, Arizona. A recent merger she provided her consultancy services for led to a compensation package of $250,000 along with the stock options of the merged company. Brooks has identified two startup browsing companies, Zeg and Skive, with significant growth potential and is looking to invest in one or both of these companies. To arrive at a justifiable fair share value of these companies, she has collected the following data...
Cassidy Brooks is a freelance financial analyst currently residing in Phoenix, Arizona. A recent merger she...
Cassidy Brooks is a freelance financial analyst currently residing in Phoenix, Arizona. A recent merger she provided her consultancy services for led to a compensation package of $250,000 along with the stock options of the merged company. Brooks has identified two startup browsing companies, Zeg and Skive, with significant growth potential and is looking to invest in one or both of these companies. To arrive at a justifiable fair share value of these companies, she has collected the following data...
Use the following information for questions 12-18. For the purpose of this question, the current date...
Use the following information for questions 12-18. For the purpose of this question, the current date is Dec 31st, 2014.DownScale, Inc is a diet marketing company which sells books, supplements, and diet foods. It has after-tax earnings in 2014 of $200M or $4.00 earnings per share (50m shares outstanding), and a tax rate of 30%. It also has $500M in debt on which it pays $25M in interest annually. Dividends of $1.30 per share were paid on December 30, 2014....
On January 2, 2006, in the strategic committee meeting of the company, Christine Carmen Chairman, President...
On January 2, 2006, in the strategic committee meeting of the company, Christine Carmen Chairman, President and Chief Executive Officer said, we are optimistic about 2006 and the years beyond. The proposed projects presently under consideration will enable us efficiently to expand our productivity in order to meet ever-increasing customers demand with high quality engineered products and systems for defense, aerospace and industrial applications. Carmen Corporation is a supplier of sophisticated, highly engineered products and systems for defense, aerospace and...
3.When closing entries are made:Immersive Reader (1 Point) All ledger accounts are closed to start the...
3.When closing entries are made:Immersive Reader (1 Point) All ledger accounts are closed to start the new accounting period. All real accounts are closed but not the nominal accounts. All balance sheet accounts are closed. All temporary accounts are closed but not the permanent accounts. All permanent accounts are closed but not the nominal accounts. 4.A wholesaler is an intermediary that buys products from manufacturers or other wholesalers and sells them to consumers.Immersive Reader (1 Point) True False 5.The Merchandise...
Annapolis Company purchased a $2,000, 7%, 9-year bond at 99 and held it to maturity. The...
Annapolis Company purchased a $2,000, 7%, 9-year bond at 99 and held it to maturity. The straight line method of amortization is used for both premiums & discounts. What is the net cash received over the life of the bond investment? (all money received minus all money paid, round to nearest whole dollar) Ocean Pines Company had net income $475,000. They also had depreciation expense of $200,000, an increase or (decrease) in accounts receivable of $-30,000, and an increase or...
Scott's Watermelon Company has the following inputs: Sales = $44,000,000 Total assets on balance sheet =...
Scott's Watermelon Company has the following inputs: Sales = $44,000,000 Total assets on balance sheet = $100,000,000 Total debt in capital structure = $30,000,000 Ke = 15% Kd = 10% (before tax adjustment) Tax rate = 40% The anticipated ongoing net operating income (EBIT) is $17,000,000. With the following data, please tell me what the total fair market value of Scott's Watermelon Company is. Amy's Pet Supply Warehouse is trying to figure out their degree of combined leverage. You aim...
During the trial, lawyers for the accused said that the men believed that the accounting decisions...
During the trial, lawyers for the accused said that the men believed that the accounting decisions they made were appropriate at the time, and that the accounting treatment was approved by Nortel’s auditors from Deloitte & Touche. Judge Marrocco accepted these arguments. Marrocco added he was “not satisfied beyond a reasonable doubt” that the trio (i.e., Dunn, Beatty, and Gollogly) had “deliberately misrepresented” financial results. Given the facts of the case, do you believe Judge Marrocco’s decision was justified? Explain....
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT