Answer:
The answer is stated below:
Explanation:
The accounting equation is as follows:
Assets = Liabilities + Stockholders' Equity
Analyzing the transactions:
1. The service is provided to customer on account, which result in increase in assets and the stockholders' equity
So,
Assets = Liabilities + Stockholders' equity
+ $4,000 = $0 + +$4,000
2. The equipment is purchased by signing a note, which result in increase in liability and also increase in the assets.
So,
Assets = Liabilities + Stockholders' equity
+ $10,500 = +$10,500 + $0
3. Paid for the advertising, which result in decrease in cash as well as decrease in the equity of the company.
So,
Assets = Liabilities + Stockholders' equity
- $1,200 = $0 + -$1,200
Answer:
(a) the earnings per share = $3
(b) the price-earnings ratio = 8x
(c) the dividends per share = $0.25
(d) the dividend yield = 1.04%
Explanation:
Common Stock Outstanding = 5,250,000/25 = 210,000 shares
Preferred Stock Outstanding = 6,000,000/200 = 30,000 shares
Preferred Stock Dividend per share = $4
(a) Earnings Per Share
EPS = <u>Net Income - Preferred Dividend</u>
Common Stock Outstanding
EPS = <u>750,000 - (30,000 * 4)</u>
210,000
EPS = <u>630,000</u>
210,000
EPS = $3
(b) Price-Earnings Ratio
Market Price = $24
EPS = $3
P/E ratio = <u>Market Price</u>
EPS
P/E ratio = 24/3
P/E ratio = 8x
(c) Dividends Per Share
DPS = <u> Total Dividends </u>
Common Stock Outstanding
DPS = 52,500/210,000
DPS = $0.25
(d) Dividend Yield
DY = <u>Dividend Per Share</u>
Price
DY = 0.25/24
DY = 1.04%
Answer:
Employees need to know what is expected of them; having clear expectations helps employees do their job well. A good manager will convey his expectations and make sure employees understand them. He also will make himself available to employees, so they can have the opportunity to clarify any confusion they may have.
Answer:
Explanation:
A)
cost of not taking a cash discount = (1+3/(100-3))^(360/(35-13)) -1
cost of not taking a cash discount = 66.5%
B)
Effective rate of interest if the company borrows from the bank = (17/(100-12))
Effective rate of interest if the company borrows from the bank = 19.3%