Answer:
26.42
Explanation:
A firm has an EPS of $2.08
The benchmark PE is 12.7
The growth rate is 3.8 percent
Therefore the estimated current stock price can be calculated as follows
= 2.08×12.7
= 26.42
Answer:
binding arbitration
Explanation:
Both parties agree to be bound by the decision of the arbiter and follow the recommendations/obligations stipulated by the arbiter at the end of the process.
That bound of the two parties makes it a binding arbitration.
As opposed to a non-binding arbitration where the result cannot be enforced onto the parties, a bit like a mediation. The result is more like a discussion starting point towards a negotiation of the end of the conflict.
Answer: $910,000
Explanation:
Pension expense is calculated by the formula:
= Prior Service cost for the year+ Service cost + Interest cost - Expected return on plant assets
Prior Service cost = Prior service cost / Service life of active employees
= 8,000,000 / 20
= $400,000
Expected return on plan assets = Plan assets * Interest rate
= 1,500,000 * 10%
= $150,000
Pension expense = 400,000 + 560,000 + 100,000 - 150,000
= $910,000
Answer:
1. Sales Revenue
Always first in an Income Statement.
2. Cost of Goods Sold
Subtracted from Revenue to find Gross Profit.
3. Gross Profit on Sales
Profit net of Cost of Goods sold.
4. Operating expenses
Expenses from the company's operations including wages and depreciation. Subtracted from Gross Profit to find Operating income.
5. Income from operations
Gross profit net of operating expenses.
6. Other revenues and gains
Added to Operating Income.
7. Income from continuing operations before income taxes
8. Income taxes
Subtracted to find income from continuing operations.
9. Income from continuing operations
10. Discontinued operations
Income from divisions and activities that have been discontinued.
11. Net Income
A firm's <u>operating breakeven</u><u> point</u> is the level of sales necessary to cover all operating costs.
More about operating breakeven point:
The point at which sales revenue equals all fixed and variable costs while producing no profit for the company is known as the operating breakeven point. A fixed cost is a cost that a company incurs regardless of how many units are produced.
Fixed costs include things like rent, insurance, and interest payments. On the other hand, a variable cost is a cost that varies according on the amount of output. Variable expenses include, for example, labor and raw materials.
Learn more about operating breakeven point here:
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Complete Question:
A firm's ________ is the level of sales necessary to cover all operating costs, i.e., the point at which EBIT equals zero.
A) cash breakeven point
B) financial breakeven point
C) operating breakeven point
D) total breakeven point
