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

question 273

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 to earning ratio.Show your work.Is this ratio relatively high or low? What might an increase in the price to earning ratio indicate?

---

Definitions:

Smaller Employers

Businesses or organizations with a lower number of employees, often having different management and operational needs than larger companies.

Expectancy Theory

A psychological theory that proposes that an individual will act in a certain way because they are motivated to select a specific behavior over other behaviors due to what they expect the outcome of that selected behavior will be.

Similar Job Class

Positions or roles within an organization that have comparable responsibilities, required skills, and qualifications.

Salaried Employees

Workers who are paid a fixed regular amount by their employer, typically on a monthly or biweekly basis, regardless of hours worked.