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A company can produce a product the first time at a cost of $2,500.If its 85 percent learning curve allows the company to reduce its costs on each product, what is the total cost of producing 400 units of the new product? _________________
Forecast Earnings
An estimate of a company's future earnings per share over a specific period, often used by analysts to project future financial performance.
ROE
Return on Equity, a measure of the profitability of a business in relation to the equity, calculated as net income divided by shareholder's equity.
Plowback
The reinvestment of earnings by a company back into its business, often for expansion or development; also known as retained earnings.
PEG Ratio
A stock's price-to-earnings ratio divided by the growth rate of its earnings, used to determine the relative trade-off between the price of a stock, the earnings generated per share, and the company's expected growth.
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