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dangina [55]
3 years ago
12

Ale Corporation had net income of $240,000 and paid dividends to common stockholders of $40,000 in 2017. The weighted average nu

mber of shares outstanding in 2017 was 60,000 shares. Ale Corporation's common stock is selling for $76 per share on the New York Stock Exchange. Ale Corporation's price-earnings ratio is?

Business
2 answers:
Aneli [31]3 years ago
7 0

Answer:

The price earnings ratio is 19:1

Explanation:

The price earnings ratio tells us that how much price the investors are willing to pay for $1 of earnings provided by the company. The price earnings ratio is calculate by dividing the price per share by the earnings per share.

Price earnings ratio = Price per share / Earnings per share

The price per share is the market price of the stock.

The earnings per share is calculated using the following formula:

Earnings per share = Net Income  /  Weighted average shares outstanding

Earnings per share = 240000 / 60000 = $4 per share

The price earnings ratio = 76 / 4  =  19 / 1   or 19:1

givi [52]3 years ago
6 0

Answer:

19times

Explanation:

The solution can be seen in the picture attached

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Measuring business activities and reporting those measurements to external parties is the function of ______ accounting.
Andru [333]

Answer:

Financial

Explanation:

Basically, there are two forms of accounting for measuring business activities namely; Financial accounting and Management accounting.

Financial accounting involves the measurement of the business activities over a period using a defined framework or standard such as US GAAP, IFRS, etc. This is usually presented in a form of statements called the financial statements and is used by internal and external stakeholders such as Government, creditors, shareholders etc.

Management account is usually prepared for management purposes and measures the company's actual activities against the budget or plan.

The right answer is financial accounting.

3 0
3 years ago
Best Buy does not play loud music in its stores, based on feedback that women don’t like it. A woman who arrived at Best Buy aft
ivanzaharov [21]

Answer:

D) Problem removal

Explanation:

Since it has been discovered that women don't like loud music, a woman who just left a loud music technology store for Best Buy stores that doesn't play loud music will have her 'problem removed'.

Best Buy store can be regarded as a problem removal store by helping women to solve their problem of listening to loud music.

Women Will have a good and problem removal experience in Best Buy Store.

Best Buy store has had an advantage against other stores because they don't play loud music and more women will patronise them, thereby, increasing their profits.

7 0
2 years ago
Read 2 more answers
g The company plans a 4-for-1 stock split. How many shares will you own and what will the share price be after the stock split?
Nata [24]

Answer: 14,400; $17

Explanation:

Stock splits are a strategy by firms to increase the liquidity of their shares especially when they are trading at a high price. The firm divides the stock by a certain number thus increasing the number of shares by the multiple of the number. This action will divide the price of the stock and thus allow for more trade as they are cheaper.

A 4-for- stock split means that each share will become 4.

Your total number of share will become;

= 4 * 3,600

= 14,400 shares

The new price will be;

= 68/4

= $17 per share

7 0
2 years ago
Marcelino Co.'s March 31 inventory of raw materials is $88,000. Raw materials purchases in April are $530,000, and factory payro
shtirl [24]

Answer:

Marcelino Co.

a. Total materials purchases = $530,000

b. Direct materials used in production:

Beginning balance of direct materials = $73,000

Current direct materials used =              442,000

Total materials used in production =    $515,000

c. Direct labor paid and assigned to Work in Process Inventory:

                                        Job 307      Job 308           Total

Beginning Direct labor   $17,000                            $17,000

Current Direct labor       153,000     $102,000     255,000

Total Direct labor         $170,000     $102,000   $272,000

d. Indirect labor paid and assigned to Factory Overhead:

Indirect labor   $28,000

Applied =          $27,720 (99% ($193,000/$195,000))

e. Overhead costs applied to Work in Process Inventory

=

Job 307      Job 308           Total

76,500          51,000     $127,500

f. Actual overhead costs incurred and paid in cash:

Indirect materials                            $51,000

Indirect labor,                                 $28,000

Factory rent,                                  $40,000

Factory utilities,                             $25,000

Total overhead costs =                $144,000

g. Transfer of Jobs 306 and 307 to Finished Goods Inventory:

                                              Job 307      Job 308           Total

Balances on March 31

Direct materials                   $42,000                            $42,000

Direct labor                             17,000                               17,000

Applied overhead                   8,500                                 8,500

Costs during April

Direct materials                  210,000      $100,000     $310,000

Direct labor                         153,000        102,000      255,000

Applied overhead                76,500          51,000        127,500

Total cost                        $507,000     $253,000    $760,000

h. Cost of goods sold for Job 306 = $349,000

i. Revenue from the sale of Job 306 = $700,000

j. Assignment of underapplied overhead to the Cost of Goods Sold account:

Total overhead applied = $179,000

Total overhead incurred = 195,000

Underapplied overhead = $16,000

Explanation:

a) Data and Calculations:

Raw materials Inventory (March 31) $88,000

Purchases of raw materials during April = $530,000

Factory Payroll cost = $386,000

Overhead costs =

Indirect materials                            $51,000

Indirect labor,                                 $28,000

Factory rent,                                  $40,000

Factory utilities,                             $25,000

Factory equipment depreciation, $51,000

Total overhead costs =               $195,000

                                 Job 306      Job 307      Job 308           Total

Balances on March 31

Direct materials        $31,000     $42,000                            $73,000

Direct labor                 21,000        17,000                               38,000

Applied overhead      10,500         8,500                                19,000

Balances                 $62,500     $67,500                           $130,000

Costs during April

Direct materials      132,000      210,000      $100,000    $442,000

Direct labor             103,000      153,000        102,000      358,000

Applied overhead    51,500        76,500          51,000       179,000

Total cost            $349,000   $507,000     $253,000  $1,109,000

7 0
3 years ago
In the fictional country of Dirian the economics statistics department has been busy calculating the price index for a basket of
inysia [295]

Answer:

Inflation refers to the general rise in price levels of goods and services in an economy.

Inflation = \frac{CPI in current year - CPI in previous year}{CPI in current year} *100

2014 Inflation;

Inflation = \frac{104.7 - 100}{100} *100\\= 0.047

= 4.7%

2015

Inflation = \frac{109.3 - 104.7}{104.7} *100\\\\= 0.0439

= 4.39%

2016

Inflation = \frac{113.1 - 109.3}{109.3} *100\\\\= 0.0348

= 3.48%

2017

Inflation = \frac{119.2 - 113.1}{113.1} *100\\\\= 0.0539

= 5.39%

4 0
3 years ago
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