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3 years ago

Dividing a stock's current price per share by the issuing company's earnings per share results in

2 answers:

5 0

Price per share / Earnings per share = Price-Earnings Ratio
Price-Earnings Ratio shows how much the investors are willing to pay per earnings for the company. For example, if the P/E Ratio is 15 suggests that the investors of a stock is willing to pay $15 per $1 of earnings of the company may produce over the year.

Morgarella [4.7K]3 years ago

4 0

<span>Dividing a stock’s current price per share by the issuing company’s earnings per share results in the price-earnings ratio. Price-earnings ratio = price per share / earnings per share. The price per share is how much each share of stock costs to purchase. The earnings per share is how a company can see if they are profitable now and in the future. </span>

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On May 1, 2015, Pinkley Company sells office furniture for $300,000 cash. The office furniture originally cost $750,000 when pur

Savatey [412]

Answer:

$45,000

Explanation:

Data provided in the question:

Selling cost of the furniture on May 1, 2015 = $300,000

Original cost of the machine on January 1, 2008 = $750,000

Depreciable Life of the furniture = 10 years

Salvage value = $75,000

Now,

Annual depreciation = $\frac{\textup{Purchasing cost - salvage value}}{\textup{life}}$

Annual depreciation = $\frac{\textup{750,000 - 75,000}}{\textup{10}}$

Annual depreciation = $67,500 per year

The total duration from the date of purchase to date of selling

= 7 years 4 months

= 7 × 12 + 4 months

= 88 months

= $\frac{88}{12}$ years

therefore,

The total accumulated depreciation till the date of sale

= Annual depreciation × Duration

= $67,500 × $\frac{88}{12}$

= $495,000

Thus,

The book value on May 1, 2015

= Purchasing cost - Accumulated depreciation

= $750,000 - $495,000

= $255,000

Hence,

The gain recognized = Selling cost - Book value

= $300,000 - $255,000

= $45,000

8 0

4 years ago

A ten-year, inflation-indexed bond has a par value of $10,000 and annual coupon rate of 5 percent. During the first six months s

Anvisha [2.4K]

Answer:

The correct answer is option (B).

Explanation:

According to the scenario, the given data are as follows:

Par value of bond = $10,000

Coupon rate Annual = 5%

So, Coupon rate semi annual = 2.5%

Inflation rate semi annual = 2%

So, we can calculate the coupon payment for six months by using following formula:

New par value of bonds after inflation = $10,000 + ( $10,000 × 2% ) = $10,200

So, Coupon payment = New par value × Coupon rate semi annual

= $10,200 × 2.5%

= $255

5 0

3 years ago

Wax music expects sales of $437,500 next year. the profit margin is 4.8 percent, and the firm has a 30 percent dividend payout r

zimovet [89]

$16,231 is the Projected Increase in Retained Earnings.

<h3>Explanation</h3>

get here first Expected Profit that is express as

expected Profit = Sales × Profit Margin .......................1

expected Profit = 437500 × 5.3%

expected Profit = $23187.50

and Dividends is here as

Dividends = Expected Profit × Dividend Payout Ratio .................2

Dividends = 23187.50 × 30%

Dividends = $6956.25

Projected Increase in Retained Earnings will be

Projected Increase in Retained Earnings = expected Profit - Dividends ........3

Projected Increase in Retained Earnings = $23187.50 - $6956.25

Projected Increase in Retained Earnings = $16231.25

There are options missing in the question which is given below-

a. $16,231

b. $17,500

c. $18,300

d. $20,600

e. $21,000

Thus, the correct option is a. $16231

For more details about the question, click here:

brainly.com/question/14275701

#SPJ1

3 0

2 years ago

Give a short introduction of seasonal vegetable cultivation

vazorg [7]

Answer:

<em><u>Seasonal vegetables are those vegetables that can not adjust all kind of temperatures.</u></em> The seasonal vegetables are grown in the natural cycle of seasons when they are most suitable. For example, cauliflower only grows in winter season.

5 0

3 years ago

Read 2 more answers

What types of information does a W-2 form contain? Check all that apply

vovangra [49]

Answer:

Normally "check all that apply" is followed by answers to check...

Explanation:

A W-2 is a Tax statement

8 0

4 years ago