Using MIS (10th Edition)
10th Edition
ISBN: 9780134606996
Author: David M. Kroenke, Randall J. Boyle
Publisher: PEARSON
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Expert Solution & Answer
Chapter 8, Problem 8.6CE8
Explanation of Solution
Reason for Tech Companies’ have high P/E ratio:
P/E ratio means price-to-earnings ratio which means relationship between company’s current share price and its earning per-share. Tech companies are software based companies and traditional companies are hardware based companies.
- Normally, tech companies are viewed as having high growth in the society and at the same time, the usual assumption is that additional sales go directly to profit.
- Tech companies revenues and earnings capacity cannot maintain the same growth as earlier and hopes have been moderated.
- Tech companies usually develop their asset in-house and it does not get capitalized on the balance sheet.
- It is very attractive in market because of their business presentation, model and expected upcoming earnings...
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Chapter 8 Solutions
Using MIS (10th Edition)
Ch. 8.3 - Prob. 1EGFQCh. 8.3 - Prob. 2EGFQCh. 8.3 - Prob. 3EGFQCh. 8.3 - Prob. 4EGFQCh. 8.4 - Prob. 1EGDQCh. 8.4 - Prob. 2EGDQCh. 8.4 - Prob. 3EGDQCh. 8.4 - Prob. 4EGDQCh. 8.4 - Prob. 5EGDQCh. 8.8 - Prob. 1SGDQ
Ch. 8.8 - Prob. 2SGDQCh. 8.8 - Prob. 3SGDQCh. 8.8 - Prob. 4SGDQCh. 8.8 - Prob. 8.1ARQCh. 8.8 - Prob. 8.2ARQCh. 8.8 - Prob. 8.3ARQCh. 8.8 - Prob. 8.4ARQCh. 8.8 - Prob. 8.5ARQCh. 8.8 - Prob. 8.6ARQCh. 8.8 - Prob. 8.7ARQCh. 8.8 - Prob. 8.8ARQCh. 8 - Prob. 8.1UYKCh. 8 - Prob. 8.2UYKCh. 8 - Prob. 8.3UYKCh. 8 - Prob. 8.4UYKCh. 8 - Prob. 8.5UYKCh. 8 - Prob. 8.6CE8Ch. 8 - Prob. 8.7CE8Ch. 8 - Prob. 8.1CS8Ch. 8 - Prob. 8.11CS8Ch. 8 - Prob. 8.12CS8Ch. 8 - Prob. 8.13CS8Ch. 8 - Prob. 8.14CS8Ch. 8 - Prob. 8.15CS8Ch. 8 - Using your answers to these questions, write a job...Ch. 8 - Prob. 8.17CS8Ch. 8 - Prob. 8.18MMLCh. 8 - Prob. 8.19MML
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