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PSYCHO15rus [73]

3 years ago

9

A company has net income of $945,000; its weighted average common shares outstanding are $189,000. its dividend per share is $0.

90, its market price per share is $97, and its book value per share is $89.50. its price earnings ratio equals:

1 answer:

ExtremeBDS [4]3 years ago

4 0

Explanation:

Net Income=$945000

Average outstanding=$189000

Per Share=$0.90

Market price=$97

Book value=$89.50

Ratio=7:5

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A firm's current profits are $400,000. These profits are expected to grow indefinitely at a constant annual rate of 4 percent. I

Valentin [98]

Answer:

A. $21,200,000

B. $20,800,000

Explanation:

A. Calculation to determine The instant before it pays out current profits as dividends

Value of the firm =[(Current profits) × (1 +Opportunity cost of funds)} ÷ (Opportunity cost of funds - Constant growth annual rate)

Let plug in the formula

Value of the firm= [($400,000) × (1 + 0.06)]÷ (0.06 - 0.04)

Value of the firm= [($400,000) × (1.06)]÷0.02

Value of the firm= $424,000 ÷ 0.02

Value of the firm= $21,200,000

Therefore The instant before it pays out current profits as dividends will be $21,200,000

B. Calculation to determine The instant after it pays out current profits as dividends

Using this formula

Value of the firm =[(Current profits) × (1 +Constant growth annual rate)} ÷ (Opportunity cost of funds - Constant growth annual rate)

Let plug in the formula

Value of the firm= [($400,000) × (1 + 0.04)] ÷ (0.06 - 0.04)

Value of the firm= [($400,000) × (1.04)] ÷ (0.06 - 0.04)

Value of the firm= $416,000 ÷ 0.02

Value of the firm= $20,800,000

Therefore The instant after it pays out current profits as dividends will be $20,800,000

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3 years ago

assume a company uses the weighted average method in its processing costing august 1 balance 62000 and materials 310,000 consist

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Answer:

see explanation

Explanation:

<em>Hi, your question is incomplete, I tried to look for it online but I could not find it. Here is an explanation on the steps to solve the problem.</em>

Step 1 : Determine the Total Materials Cost

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Costs added during the period $40500

Total $350,500

Step 2 : Total Equivalent units for materials

Equivalent units for materials = Completed units + Equivalent units in ending work in process inventory.

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The YTM on a 2 year zero coupon bond is 5% and the YTM on a 1 year zero coupon bond is 3%. What does the no-arbitrage condition

tresset_1 [31]

Answer:

<em>$111.11 or 111.11% of face value</em>

Explanation:

Assuming the face value of $100 for all bonds (without loss of generality)

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Answer:

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