2. Write first four terms of the AP, when the first term a and the common difference d are
(iv) The amount of money in the account
c.
ompound interest at 8 % per annum.
given as follows:
(i) a= 10,
d= 10
(11) a= -2, d=0
(iv) a=-1, d=
2
(iii) a = 4,
d=-3
(v) a=-1.25, d=-0.25
ommon difference:
Answers
Answer:
Step-by-step explanation:
From the investor point of view the price earning ratio was the most easiest way to judge either the company was producing the good profit or not and people think that if the price earning ratio was increasing so the companies growth was increasing to, but in real have no significant relation with each other, price earning ratio and growth, in past many researches have done study the behavior of growth with different variable like p/e ratio, dividend payout ratio, e/p ratio and many more. In this research p/e ratio used to test relationship between the p/e ratio and growth of a company so this research was to give idea to all investor that there was not a significance relation between these two variables and growth was not dependent to price earning ratio.
The core idea of this study was to find out that was there any correlation between p/e ratio and corporate growth, in context of past several researches it was clear that there was not any relation between p/e ratio and corporate growth in long run, but there was a relation.
The most general measure of how expensive a stock is. The price / earning was equal to market capitalization of a security divided by its profit after tax for a period of 12 months, usually the follow-up period, but sometimes the current period or forward. The value was the same whether the calculation was performed for the entire company or on a basic share.
For example, the price / earning ratio of company with a price of $ 10 per share and earnings per share of $2 was 5. The higher the price / earning ratio, the higher the market was ready to pay for each dollar of annual income. Companies with high price / earning ratios were more than “risky” investments which have low price / earning ratio, and a maximum price / earning ratio indicate high expectations. Comparison of the price / earning ratios was most valuable for firms in the industry. Price earning ratio of last year would be real while price earning ratio for future year and this year might be estimated, but in each case the “p” in the expression was the current price. Companies that were not profitable do not have a price / earning at all. Price earning ratio also called earning multiplier.
In past there were so many work on price earning ratio some of these were Nicholas Molodovsky (1953) discussed pe ratio in his paper A Theory of Price-Earnings Ratios, Lewis C. Wilcoxen (1955) in The Price-Earnings-Variable Characteristicsm, M. j. gorden (1959) in his paper Dividends, Earnings, and Stock Prices, Sanford L. Margoshes (1960) Price Earnings Ratio in Financial Analysis …. Its Use and Abuse, Joseph E. Murphy, Jr. and Harold W. Stevenson (1967) in Price Earnings Ratios and Future Growth of Earnings and Dividends, Earl M. Foster (1970) in Price-Earnings Ratio and Corporate Growth and Price-Earnings Ratio and Corporate Growth: A Revision, William Beaver and Dale Morse (1978) in What Determines Price-Earnings Ratios, Darryl Craig, Glenn Johnson, Maurice Joy (1987) in Accounting Methods and P E Ratios, Walter R. Good (1991) in his paper When were Price Earnings Ratios Too High Or Too Low, Patricia M. Fairfield (1994) in PE, PB and the Present Value of Future Dividends, W. Edward Bell (1958) in his paper, Martin L. Leibowitz and Stanley Kogelman (1990), Martin L. Leibowitz and Stanley Kogelman (1994),Martin L. Leibowitz (2002) The Levered P-E Ratio, Lewis C. Wilcoxen (1955) The Price-Earnings-Variable, and James D. McWilliams (1966) Prices, Earnings and P-E Ratios