The common stock of Securetech Corporation consistently sells at a market price of 20 times earnings, i. e., at a p/e ratio of 20. What would be the most likely effect of a 10 cent increase in Securetech's basic EPS

An increase in market price of approximately $2 per share.

Explanation: A common stock is the stock of a company which entitles the owner certain right to ownership of a company, such as the ability to vote during annual general meetings and are also known to be popular to the population more than other types of stocks.

A TEN(10) PERCENT RISE IN SECURETECH'S BASIC EARNINGS PER SHARE WILL MOST LIKELY LEAD TO APPROXIMATELY $2 RISE IN THE MARKET PRICE OF

SECURETECH'S BASIC EARNINGS .

Mathematical calculations

10% increase= (10÷100)*20dollars

= 0.1*$20

=$2 increase in earning per share.

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.