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Strike441 [17]
3 years ago
6

Bauer Software's current balance sheet shows total common equity of $5,125,000. The company has 300,000 shares of stock outstand

ing, and they sell at a price of $27.50 per share. By how much do the firm's market and book values per share differ
Business
1 answer:
Umnica [9.8K]3 years ago
6 0

Answer:

The answer is $10.42 per share

Explanation:

Book value per share is the value placed on a share as shown in the book (Financial statement of the company) while market value per share is the value viewed by the public.

Common equity = $5,125,000

Outstanding shares = 300,000 shares

Book value per share = common equity/outstanding shares

$5,125,000/300,000 shares

= $17.08 per share

Market price is $27.50 per share

Therefore, the difference is :

$27.50 - $17.08

= $10.42 per share

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Why do multi-national hotel groups prefer local citizens to serve in top-level- management positions? The salaries to local mana
raketka [301]

Answer:

Employee morale will improve as workers recognize they can be promoted to the highest levels of management.

Explanation:

When multinational hotels use local citizens to serve as top management on the company, it sends a message to other local employees that it is possible to rise to a position of higher responsibility in the company even as a local hire.

Workers are more motivated to deliver their best because there is reward of growth.

Furthermore this will increase Goodwill of the company among local citizens.

4 0
3 years ago
If a bond is trading at a premium, what is the relationship between the bond's coupon rate, current yield and yield to maturity?
Goshia [24]

When a bond is trading at a premium, then the coupon rate is higher than the current yield and the yield to maturity.

<h3>How does a bond trade at premium?</h3>

For a bond to trade at premium, the coupon rate would have to be higher than the yield to maturity and the current yield.

Such a bond would trade at premium because the present value of the bond would be more than the par value thanks to the coupon being larger than the discount rate which is the yield to maturity.

Find out more on the yield to maturity at brainly.com/question/14012047.

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3 0
2 years ago
Please help solve this
joja [24]

Answer:

The Gross Domestic Product of the territory is $ 172 million.

Explanation:

The Gross Domestic Product (GDP), measured in monetary units, is the market value of all goods and services within a territory in a given period of time, usually annual, which is estimated by the following expression:

GDP = C+BI+GEx+GEn+E-I (1)

Where:

C - Consumption.

BI - Business investments.

GEx - Government expenditures.

GEn - Government entitlements.

E - Exports.

I - Imports.

Please notice that positive sign represents money that has entered into the economy of the territory.

If we know that C = 50\times 10^{6}, BI = 10\times 10^{6}, GEx = 75\times 10^{6}, GEn = 38\times 10^{6}, E = 12\times 10^{6} and I = 13\times 10^{6}, then the GDP of the territory is:

GDP = 50\times 10^{6}+10\times 10^{6} + 75\times 10^{6}+38\times 10^{6}+12\times 10^{6}-13\times 10^{6}

GDP = 172\times 10^{6}

The Gross Domestic Product of the territory is $ 172 million.

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Oddysseyware says the answer is FALSE

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