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:

Five-Factor Model

A theory identifying five primary dimensions of personality: openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Conscientiousness

A personality trait characterized by thoroughness, carefulness, and the desire to do a task well.

Dependable

Capable of being relied on; trustworthy and consistent in performance or behavior.

Five-Factor Model

A model that outlines five broad dimensions of human personality traits: openness, conscientiousness, extraversion, agreeableness, and neuroticism.