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Vitek1552 [10]
3 years ago
9

Market Value Ratios Val's Volleyball Supply's market-to-book ratio is currently 3.29 times and PE ratio is 5.49 times. If Val's

Volleyball Supply's common stock is currently selling at $9.70 per share, what is the book value per share and earnings per share? (Round your answer to 2 decimal places.)
Business
1 answer:
olga2289 [7]3 years ago
4 0

Answer:

Book Value of Share is $2.9

Earning Per share is $1.8

Explanation:

Market to book value ratio is the measure to calculate the time the market value of a share is as compared to book value of that share.

Market to book value = Market value / Book value

3.29 = $9.7 / Book value

Book Value = $9.7 / 3.29

Book value = $2.9

Price earning ratio is the ratio the compare the market price of a share with earning associated with that share.

Price earning Ratio = Price of share / Earning per share

5.49 = $9.7 / Earning per share

Earning Per share = $9.7 / 5.49 = $1.8

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Rick Co. had 30 million shares of $1 par common stock outstanding at January 1, 2021. In October 2021, Rick Co.'s Board of Direc
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Answer:

The journal entry is as follows:

Retained earnings A/c Dr. $18 million

        To common stock                        $0.30 million

        To capital paid in excess A/c      $17.70 million

(To record the stock dividend issued at 1%)

Working notes:

Shares issued = 1% of 30 million

                        = 0.30 million

Retained earnings:

= 0.30 million × $60 per share

= $18 million

Common stock:

= 0.30 million × $1 par value

= $0.30 million

Capital paid in excess:

= Retained earnings - Common stock

= $18 million - $0.30 million

= $17.7 million

8 0
3 years ago
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The advertisement of the new toothpaste "tidy" that provides highly valid research information is an example of scientific execution style. It is a type of marketing style that uses research or scientific<span> evidence to give a brand superiority over competitors. The consumer gets scientific information about the product.</span>
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3 years ago
You have just received notification that you have won the $3 million first prize in the Centennial Lottery. However, the prize w
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Answer:

The present value of your windfall if the appropriate discount rate is 10 percent is $5,562

Explanation:

Amount of Prize = $3,000,000

number of year = 66 years

Discount Rate = 10%

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PV = $3,000,000 x ( 1 + 0.10 )^-66

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8 0
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Paid vacations and sick leave are
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Answer:

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7 0
3 years ago
Read 2 more answers
If bonds are issued at a premium, the stated interest rate is a.higher than the market rate of interest b.too low to attract inv
worty [1.4K]

Answer:

a.higher than the market rate of interest

Explanation:

If bonds are issued at a premium, the stated interest rate is <u>higher than the market rate of interest.</u>

- If the company issues the binds at a premium, it means that the company is getting more money than the face value of the bond.

- This happens because the demand for the bind is high in the market.

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- If the bonds are issued at a discount, then the stated interest rate is lower than the market interest rate.

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