Answer: $527,000
Explanation:
Salaries to authors = $347,000
Fees to contracted editors = $180,000
Copyrights obtained = $83,000
Purchase of a new printing warehouse = 1.3 million
Upgrade of current printing equipment = $560,000
McKinney Enterprises expense will be:
= Salaries to authors + Fees to contracted editors
= $347,000 + $180,000
= $527,000
Answer:
It is decreased by the sale amount
Explanation:
An income statement is a financial statement that communicates a business's profitability. An income statement lists the revenues and expenses incurred by a business in a period.
The sale of a company's asset may result in a loss or profit. A profit is treated as an income to the business, but a loss is an expense. When an asset is sold at a loss, business expenses increase. An increase in expenses reduces profits as reported in the income statement.
Answer:
the stock value per share is $53
Explanation:
The computation of the stock value per share is shown below:
Value of operations = Free cash flows ÷ ( Capitalization Rate - growth rate )
= $175 Million ÷ ( (10% - 4%)
= $2,917
Now stock value per share is
= $2,917 ÷ 55 million shares
= $53 per share
Hence, the stock value per share is $53
Answer:
The market rate of return on the stock is 12.55%
Explanation:
Computing the market rate of return on the stock is as:
Selling price of common stock = Expected price per share / (Rate of return [R] - Dividend)
where
Selling price of common stock is $26.46
Expected price per share is $2.00 per share
Dividend is 5.0%
Putting the values above:
$26.46 = $2.0 / (R - 5%)
$26.46 = $2.0 / (R - 0.05)
R - 0.05 = $2.0 / $26.46
R - 0.05 = 0.0755
R = 0.0755 + 0.05
Rate of return = 0.1255 or 12.55%