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vfiekz [6]
3 years ago
14

Enscoe Enterprises, Inc. (EEI) has 360,000 shares authorized, 300,000 shares issued, and 50,000 shares of treasury stock. At thi

s point, EEI has $2,350,000 of assets. $100,000 liabilities, $700,000 of common stock, and $1,550,000 of retained earnings. Further, assume that the market value of EEI's common stock is $11 per share.
Required
a. Determine the number of shares of stock that is outstanding
b. Determine the book value per share.
c. Provide a rational explanation for the difference between the book value per share and the market value per share of EEl's common stock.
Business
1 answer:
Arte-miy333 [17]3 years ago
7 0

Answer:

a. Determine the number of shares of stock that is outstanding

outstanding shares = 300,000 - 50,000 = 250,000 outstanding stocks

b. Determine the book value per share.

total stockholder equity = $700,000 + $1,550,000 = $2,250,000

book value per stock = $2,250,000 / 250,000 stocks = $9 per stock

c. Provide a rational explanation for the difference between the book value per share and the market value per share of EEl's common stock.

Several things might explain why the book value of a company differs from its market value: the company's operating model, e.g. Amazon's book value is much lower than its FMV, but the expected future profits of Amazon are huge. It also depends on the assets or liabilities that the company might have, e.g. if the company owns a lot of land or other fixed assets reported at cost which might be much lower than FMV. Other factors include the company's positive attributes, its industry, etc.

Explanation:

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kondaur [170]

A traveler needs to<u> show a form of</u><u> government identification</u> only when upon returning from an international trip.

US ID cards are usually local state-issued driver's licenses or ID cards, but social security cards (or just social security numbers) and US passport cards also serve as national ID cards.

A valid government-issued ID must include a photo, current address, signature, and a unique number or barcode associated with the individual (driver's license, passport number, etc.). ID) When submitting Form DS-11 in the following cases: 18 years or older. parent or legal guardian

Learn more about government identification here: brainly.com/question/18464634

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7 0
2 years ago
In this career, you might teach hunting classes, monitor fish populations, and work to create new areas for recreation and prese
mihalych1998 [28]

Answer:

C, True, D

Explanation:

6 0
3 years ago
Read 2 more answers
Three Waters Co. is a small company and is considering a project that will require $700,000 in assets. The project will be finan
lidiya [134]

Answer:

15.00%

Explanation:

The formula to compute the return on equity is shown below:

Return on equity = (EBIT × 1 - tax rate) ÷ (total equity)

                            = ($140,000 × 0.75) ÷ ($700,000)

                            = ($105,000) ÷ ($700,000)

                            = 15%

It shows a relationship between the earning after tax and total equity in respect of assets required for the project so that the accurate return can come

8 0
3 years ago
Read 2 more answers
Match each situation with the benefits that professional organizations provide
Lerok [7]

Answer:

Bob wants to gain extra  knowledge by joining a professional organization - professional growth and  development.

Libby seeks money for  research in a particular field- scholarship

Joseph wants to know the  latest legislation pertaining  to his industry-certification

Debby wants to work as  an intern under the guidance  of an expert in her field -mentoring

Chad likes to meet with members of his fraternity to  get a better perspective  of their work - Networking

Explanation:

Bob wants to gain extra  knowledge by joining a professional organization - professional growth and  development. This is because any attachments to professional organization is always a professional development.

Libby seeks money for  research in a particular field- scholarship. Because when you ask for money for studies, research or a university based project, including PhDs, is always either a scholarship or a grant.

Joseph wants to know the  latest legislation pertaining  to his industry-certification. Any formal studies in corporate or industry is a certification, just like when you study in school/university you get degree.

Debby wants to work as  an intern under the guidance  of an expert in her field -mentoring. Whenever anyone seeks help from an expert, supervisor or managers, the person who helps is a mentor.

Chad likes to meet with members of his fraternity to  get a better perspective  of their work - Networking. Meeting and icebreaking is a way to networking, to socialize and know more.

7 0
3 years ago
Other things the same, as the price level decreases it induces greater spending on a. both net exports and investment. b. net ex
Marina CMI [18]

Answer:

Here the correct option is A) both net export and investment.

Explanation:

When ever there is fall in the price level, it causes a fall in the price of domestic exports to other nations and on the other hand causing rise in price of foreign imports from other nations , so from this it results in the increase in exports and decrease in import of the nation, which leads to increase in net export ( which is export - import ). When there is decrease in price level,  making investment would become cheaper and more investment could be made in the opportunities available.

3 0
3 years ago
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