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2 years ago

Why family members left their family business and start their own business

1 answer:

4 0

To become a self made person, this is because sometimes you want to prove people that even if your family is successful, you can be successful on your own too. I hope this makes sense.

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Lark had net income for 2018 of S103,000. Lark had 38,000 shares of common stock outstanding at the beginning of the year and 44

Kryger [21]

Answer:

price earning ratio = 19.44 times

so correct option is c. 19.44

Explanation:

given data

net income = $103,000

common stock outstanding beginning = 38,000 shares

common stock outstanding ending = 44,000 shares

preferred stock outstanding = 5,000 shares

paid preferred dividends = $29,000

common stock = $35.00 per share

market price preferred stock = $55.00 per share

to find out

Lark's price earnings ratio

solution

first we get here average no of equity share that is

average no of equity share = common stock outstanding beginning + common stock outstanding ending ÷ 2

average no of equity share = $\frac{38000+44000}{2}$

average no of equity share = 41000 share

and

earning per share will be here as

earning per share = ( net income - paid preferred dividends ) ÷ average no of equity share

earning per share = $\frac{103000-29000}{41000}$

earning per share = $1.80

so here price earning ratio will be as

price earning ratio = $\frac{market\ price\ common\ share}{earning\ per\ share}$

price earning ratio = $\frac{35}{1.80}$

price earning ratio = 19.44 times

so correct option is c. 19.44

7 0

3 years ago

A store has 5 years remaining on its lease in a mall. Rent is $2,000 per month, 60 payments remain, and the next payment is due

liubo4ka [24]

Solution:

Sum Present value of 60 payments

Rent 2000

Periods 60

Rate 12%

Present value of 60 payments $94,405 (Excel = PV( 1% , 60 , 2000))

Future value of these payments at t=9

Future value $1,03,249.99(Excel=FV(1%,9,94,405)

Periods 51

Rate 12%

8 0

2 years ago

Which of the following is an objective of capital budgeting?

polet [3.4K]

Answer:

C. To earn a satisfactory return on investment.

Explanation:

The objective of the capital budgeting is that the company should have to do the investment in that thing which should be profitiable. In this, the company have the options i.e. either it selects the better investment or proposal for the enterprise

So as per the given situation, when the return on the investment is earn and it becames satisfactory so this represent the capital budgeting objective

Hence, the option c is correct

5 0

2 years ago

A corporation purchased manufacturing equipment for $100,000, with an estimated useful life of 10 years and a salvage value of $

bulgar [2K]

Answer:

The second year’s depreciation for this equipment using the straight line method is 8,500

Explanation:

Depreciation: Depreciation is a decreasing value of the assets due to the tear & wear, obsolescence, usage,etc.

The formula to compute the depreciation under straight lie method is shown below:

= $\dfrac{(original\ cost - salvage\ value)}{useful\ life}$

= $= \dfrac{(\$100,000 - \$15,000)}{10}$

= $8,500

The depreciation amount under straight line method should remain same over the estimated useful life

So, the second year’s depreciation for this equipment is $8,500

6 0

3 years ago

To accurately determine the financial performance of a company, it is necessary to compare the company's performance ________.

ratelena [41]

To accurately determine the financial performance of a company, it is necessary to compare its performance from <u>year to year</u>.

In order to accurately determine the financial performance of a company, financial statements are used in evaluating, which include the balance sheet, statement of cash flows, and the income statement.

Financial performance indicators are quite necessary as they are quantifiable metrics which are used to measure how well a company is doing. Some companies also hire an outside accounting firm to audit the financial statements.

Hence, it is necessary to compare the financial performance of a company from year to year.

To learn more about financial performance here:

brainly.com/question/17307055

#SPJ4

6 0

1 year ago