Suppose the Move It! Exercise Chain Has Revenues of $45

question 148

Essay

Suppose the Move It! exercise chain has revenues of $45 million, accounting costs of $15 million, and currently has issued 10 million shares of stocks selling at $90 each. Compute the price-earning ratio. Show your work. Is this ratio relatively high or low? What might an increase in the price-earnings ratio indicate?

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Definitions:

Routine

A sequence of actions regularly followed; a fixed program.

Ritual

A set of fixed actions and sometimes words performed regularly, especially as part of a ceremony or for its symbolic value.

Pavlov's Assistant

A reference to individuals who worked with Ivan Pavlov, a Russian physiologist known for his work in classical conditioning.

Intrigued Pavlov

Refers to Ivan Pavlov, a Russian physiologist known for his work in classical conditioning, which demonstrated how certain stimuli can trigger conditioned responses.