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iris [78.8K]
3 years ago
13

Haskell Motots common equity on the balance sheet totals $700million and the company has 35 million shares of common stockoutsta

nding. Haskell has significant growth opportunitew . It'sheadquarters has a book value of 45 MILLION, BUT ITS MARKET VALUEIS ESTIMATEDTO BE $ 10 MILLION. oVER TIME, HASKELL HAS ISSUEDOUTSTANDING DEBT THAT HAS A BOOK VALUE OF $10 MILLION AND A MARKETVALUE $5 MILLION.
WHICH OF THE FOLLOWING STATEMENTS IS MORE CORRECT?

A. HASKEL'S BOOK VALUR PER SHARE IS $20.
b. HASKELL'S MARKET VALUE PER SHARE IS PROBABLY LESS THAN$20.
c. hASKELL'S MARKET VALUE PER SHARE IS PROBABLY GREATERTHAN 20.
D. sTATEMENTS A AND B ARE CORRECT
r. sTSTEMENTS A AND C ARE CORRECT.
Business
1 answer:
Ludmilka [50]3 years ago
4 0

Answer:

Statements A and C are correct.

Explanation:

  • Book Value per share is the value shown in the balance sheet, which is calculated by:

Formula: BV = \frac{Total common holder stocks}{number of common shares}

After putting values in the formula we get:

BV = \frac{700m}{35m} = 20

  • Market value per share is calculated on the bases of prices of share according to the market. For example, if your company has $10000 share outstanding and the price in market per share is 50 then the market value would be $500000.

So, we have to calculate market value per share for that we have to reverse the actual calculation, which means we will have to divide total market value of outstanding shares  by the total number of outstanding shares to get market value per share:

MV per Share = \frac{10m}{35m} = 28.5

<em>Hence, statement A and C both are correct. </em>

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Golden Corp.'s current year income statement, comparative balance sheets, and additional information follow. For the year, (1) a
Alinara [238K]

Answer:

Golden Corp.

Statement of Cash Flows for the year ended December 31, using the indirect method:

Net Income before taxes          $167,000

Add non-cash expenses:

Depreciation                                 54,000

Adjustment of current assets:

Accounts receivable                    (13,500)

Inventory                                     (76,500)

Adjustment of current liabilities:

Accounts payable                        19,000

Income taxes payable                  (4,400)

Net Cash Flow from operations                  $145,600

Financing Activities:

Common Stock                $61,500

Dividend paid                    92,000

Net Cash Flow from financing activities    $153,500          

Investing Activities:

Equipment purchase       $41,000

Net Cash Flow from investing activities      $41,000

Net Cash Flow                                            $340,100

Explanation:

The Golden Corp.'s statement of cash flows depicts the flow of cash under three main activity headings: operating, financing, and investing.  There are two methods under which Golden Corp. can prepare the statement.  They include the indirect method, which starts from the net income, adjusts the non-cash expenses and the changes in working capital, and the direct method, which shows the cash inflows and outflows for each cash flow item.

5 0
3 years ago
Which of these are mathematical laws that help us solve numerical problems? O A decimals O B. graphs O C. formulas OD. percentag
Nana76 [90]

Answer:

The answer is C. Formulas.

Explanation:

Formulas: It is just a mathematical rule that is expressed in numerals or some other symbols and is used to solve a numerical problem.

5 0
2 years ago
A company's board of directors votes to declare a cash dividend of $1.55 per share of common stock. The company has 31,000 share
Viktor [21]

Answer:

Total Amount of Cash Dividend = $39,525

Explanation:

We have the following details,

Issued shares are the number of shares issued by the company, it includes treasury stock that is shares purchased back by the company.

Outstanding shares = Issued shares - Treasury stock

Treasury stock does not have any right of dividend, as the shares are held by company itself, it will not pay dividend to itself.

Thus dividend to be paid = 25,500 \times $1.55 per share = $39,525

Authorized shares just represent the number of maximum shares a company can issue.

Total Amount of Cash Dividend = $39,525

8 0
2 years ago
The amount of time it takes for an investment to double in value is called the doubling time for the investment. If the doubling
Paul [167]

Answer:

Compounding interest rate, r = 10.41%

Explanation:

As the investment will be doubled after 7 years from now, the future value of the current investment will be = $10,000 × 2 = $20,000

Therefore,

Number of periods (years), n = 7

Future value, FV = $20,000

Principal = Present Value, PV = $10,000

we have to determine the compounding interest rate, r.

We know,

r = [(\frac{FV}{PV})^{\frac{1}{n}} - 1]

Putting the values into the formula, we can get,

r = [(\frac{20,000}{10,000})^{\frac{1}{7}} - 1]

or, r =(2^{\frac{1}{7}} - 1)

With the help of calculator, we can find the value of 2^{\frac{1}{7}} = 1.1041

or, r = (1.1041 - 1)

or, r = 0.1041

Therefore, interest rate = 10.41%

7 0
3 years ago
Expansionary fiscal policies are designed to
DochEvi [55]
<span>A. Boost the economy Expansionary policies increase the money in supply to encourage spending, boost economic growth and counteract inflation.</span>
8 0
2 years ago
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