1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
raketka [301]
2 years ago
6

Beta Corporation had net income of $325,000 and paid dividends to common stockholders of $39,000 in 2017. The weighted average n

umber of shares outstanding in 2017 was 50,000 shares. Beta Corporation's common stock is selling for $52 per share on the New York Stock Exchange. Beta Corporation's price-earnings ratio is
Business
1 answer:
Bas_tet [7]2 years ago
4 0

Answer:

The price earnings ratio for Beta corporation is 8 times

Explanation:

The formula for price-earnings ratio is the stock market price divided by the  stock earnings per share.

The stock market price has been given as $52 per share

the earnings per share=net income-preferred dividends/weighted average number of shares

net income is $325,000

preferred dividends is $0

weighted average number of shares is 50,000

earnings per share=($325,000-$0)/50,000=$6.5

price earnings ratio=$52/$6.5= 8 times

You might be interested in
On June 1, 2018, Andre Company and Agassi Company merged to form Lancaster Inc. A total of 800,000 shares were issued to complet
Pavel [41]

Answer:

Lancaster Inc.

a) The number of shares to be used for calculating:

(1) Basic earnings per share  = 1,200,000 (800,000 + 400,000)

(2) Diluted earnings per share shares = 1,224,000 (1,200,000 + 24,000)

(b) The earnings figures to be used for calculating:

(1) Basic earnings per share = $1,540,000

(2) Diluted earnings per share = $1,540,000

Explanation:

a) Data and Calculations:

June 1, 2018, Number of shares issued = 800,000

April 1, 2020, additional shares issued =  400,000

July 1, 2020, 8% convertible bonds = $600,000

Conversion ratio = $1,000 bonds to 40 shares

= $600,000/1,000 * 40 = 24,000

After-tax net income = $1,540,000

Tax rate = 20%

Before tax income = $1,925,000 ($1,540,000/(1 - 0.2))

Before Bonds interest income = $2,092,391 ($1,925,000/(1 - 0.08))

5 0
3 years ago
P11-1A Tidal Corporation was organized on January 1, 2017. It is authorized to issue 20,000 shares of 6%, $50 par value preferre
saul85 [17]

Answer:

1. Jan. 10

Dr Cash $280,000

Cr Common Stock $70,000

Cr AdditionalPaid-in Capital-Common $210,000

Mar. 1

Dr Cash $636,000

Cr Preferred Stock $600,000

Cr Additional Paid-in Capital-Preferred $36,000

May 1

Dr Cash $720,000

Cr Common Stock $120,000

Cr Additional Paid-in Capital-Common $600,000

Sept. 1

Dr Cash $25,000

Cr Common Stock $5,000

Cr Additional Paid-in Capital-Common $20,000

Nov. 1

Dr Cash $168,000

Cr Preferred Stock $150,000

Cr Additional Paid-in Capital-Preferred $18,000

Explanation:

Preparation of the journal entries

1. Jan. 10

Dr Cash (70,000x$4) $280,000

Cr Common Stock (70,000x$1) $70,000

Cr AdditionalPaid-in Capital-Common $210,000

($280,000-$70,000)

Mar. 1

Dr Cash (12,000x$53) $636,000

Cr Preferred Stock (12,000x$50) $600,000

Cr Additional Paid-in Capital-Preferred $36,000

($636,000-$600,000)

May 1

Dr Cash (120,000x$6) $720,000

Cr Common Stock (120,000x$1) $120,000

Cr Additional Paid-in Capital-Common $600,000

($720,000-$600,000)

Sept. 1

Dr Cash (5,000x$5) $25,000

Cr Common Stock (5,000x$1) $5,000

Cr Additional Paid-in Capital-Common $20,000

($25,000-$5,000)

Nov. 1

Dr Cash (3,000x$56) $168,000

Cr Preferred Stock(3,000x$50) $150,000

Cr Additional Paid-in Capital-Preferred $18,000

($168,000-$150,000)

8 0
3 years ago
Discuss Two social factors (excluding friends and social interaction) that may contribute to unemployment in South Africa amongs
denpristay [2]

Answer:

Timidity and lack of self initiative drive

5 0
2 years ago
A company has an unfavorable direct materials quantity variance. A possible reason for this variance is that:
ycow [4]

Answer:

e. any of the other answers can occur.

Explanation:

The reason for the decision above is variances are not dependent on the direct material quantity variance and the calculation of all is differ. We also know the total direct material variance is total of material quantity & price variance that is because total variance may be favorable or unfavorable. And the option(d) direct labor efficiency variance do not relate with material variance.

7 0
2 years ago
What does it mean to have liability for a company
barxatty [35]
It Means if a worker or anyone gets hurt while working or doing something with your company, you need to pay his debts. 
6 0
2 years ago
Read 2 more answers
Other questions:
  • Multiple Choice Question 115 Sunland Company sells MP3 players for $50 each. Variable costs are $40 per unit, and fixed costs to
    5·1 answer
  • I have an idea that might address all of these issues. What if none of us have any of these donuts but instead we break up into
    9·1 answer
  • Suppose in country A, company B is a giant firm in the domestic smart- phone business with more than 70% market shares. Customer
    14·1 answer
  • Grossnickle Corporation issued 20-year, noncallable, 7.5% annualcouponbonds at their par value of $1,000 one year ago. Today, th
    10·1 answer
  • Valido Accused of Accepting Bribes
    5·2 answers
  • What is the yield to maturity of a bond if the bond is sold at $985.48 today, pays annual coupon of 7% and matures in 12 years?
    14·1 answer
  • Nadine’s Home Fashions has $2.12 million in net working capital. The firm has fixed assets with a book value of $31.64 million a
    8·1 answer
  • Sunland Construction enters into a contract with a customer to build a warehouse for $890000 on March 30, 2021 with a performanc
    8·1 answer
  • Everything else held constant, in the market for reserves, when the federal funds rate is 2%, lowering the interest rate paid on
    5·1 answer
  • Which of the following types of credits would best describes home equity loans? a. closed and secured b. closed and unsecured c.
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!