RAH IncIs Not Publicly Traded,but the P/E Ratios of Its 4

question 21

Essay

RAH Inc.is not publicly traded,but the P/E ratios of its 4 closest competitors are 15,15.3,15.7,and 16.5.RAH's current earnings per share are $1.50.They are expected to grow at 6% for the next few years.What is a reasonable price for a share of RAH shares?

Recognize the role of revenue management in adjusting pricing and supply to maximize profits.

Understand the factors influencing the reserved quantity for higher price segments and spot markets.

Learn the importance of shifting demand from peak to off-peak periods for supply chain profitability.

Know how revenue management tactics are devised based on customer behavior forecasts.

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Definitions:

Serial Position Effect

A memory phenomenon where items at the beginning and end of a list are remembered better than those in the middle.

Primacy Effect

The cognitive bias that results in an individual's tendency to remember and give more weight to the first pieces of information they encounter about a topic.

Sequence Order Effect

The impact that the order of presentation has on the perception and judgment of information or stimuli.

Serial Position Effect

A memory phenomenon where recall accuracy varies as a function of an item's position within a study list, often showing enhanced memory for items at the beginning and end of the list.