On December 31, 2014, Renda's common stock sold for per share. At that price, how much did investors say $1 of the company's net income was worth?

Question Completion:

On December 31, 2014, Renda's common stock sold for $35 per share. At that price, how much did investors say $1 of the company's net income was worth? Earnings per share = $1.50

Renda Company

The value of $1 of the company's net income by investors was:

$23.33

Explanation:

a) Data and Calculations:

Market price of Renda's common stock = $35 per share

Earnings per share = $1.50

This means that investors' value on $1 = $35/$1.50 = $23.33

b) Investors in Renda's common stock place a value of $23.33 for each $1 of the company's net income.  This is why they can afford to pay $35 per share in order to benefit from $1 of the company's earnings.  This calculation is based on the price-earnings ratio, which relates the company's share price to the earnings per share.

b. a single paragraph.

a paragraph is a series of sentences that are organized and make sense, and are all related to a single topic . almost every piece of writing you do that is longer than a few sentences should be organized into paragraphs. this is because paragraphs show a reader where the subdivisions of an essay begin and end, and thus the reader see the organization of the essay into subjects in order to be able to understand its main points.

answer; (a) calling people who have not shown interest in the product and asking them to buy it;