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Pavel [41]
3 years ago
15

Use the following comparative figures for Apple and Google. Google 12.662 $ Key Figures Net income (in millions) Cash dividends

declared per common share Common shares outstanding in millions) Weighted average common shares outstanding (in millions) Market value (price) per share Equity applicable to common shares (in millions) Apple $ 48,351 $ 2.40 5,126.201 5,217.242 $ 154.12 $ 134,047 694.783 693.049 $1.046.40 $152,502 Required: 1. Compute the book value per common share for each company using these data. 2. Compute the basic EPS for each company using these data. 3. Compute the dividend yield for each company using these data. 4. Compute the price-earnings ratio for each company using these data. 5. Based on the PE ratio, for which company do investors have greater expectations about future performance? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Compute the book value per common share for each company using these data. (Round your answers to 2 decimal places.) Book Value Per Common Share Apple Google

Business
1 answer:
azamat3 years ago
4 0

Answer and Explanation :

Few information is missing in the question kindly find the attachment

As per the data given in the question,

The formula and the computation is shown below

1) Book value per share = Equity applicable to share ÷ share outstanding

                                             Apple Google

Equity  common share a $134,047 $152,502

Common share outstanding b 5,126.201 694.783

Book value per common share a ÷ b $26.15 $219.50

2)Basic EPS = Net income ÷ weighted Avg common share outstanding

                Apple Google

Net income a $48,351 $12,662

weighted Avg common share outstanding b 5217.242 693.049

Basic EPS a ÷ b $9.27 $18.27

3)Dividend yield = Cash dividend per common share ÷ Market price per share

                                              Apple Google

Cash dividend per common share a 2.4 0

Market price per share b $154.12 $1046.4

Dividend yield a ÷ b 1.56% 0.00%

4) Price earning ratio = Market price per share ÷ Basic EPS

                                  Apple Google

Market price per share a $154.12 $1046.4

Basic EPS b 9.26754 18.26999

Price earning ratio a ÷ b 16.63 57.27

5) A higher PE ration indicates that investors want to pay a higher share price because of growth expectation in near by future

Therefore Google has higher PE ratio

Hence, investors have greater expectation of performance of Google in future.

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Use the following information to answer the next three questions.
nalin [4]

Answer:

The  alignment of numbers in the first part of the question is off. However, you solve this question as shown below. The correct answer is C. $1,124.

Explanation:

This is a one-time cashflow type of question where the principal amount is invested once and no other addition is made to the account. You use the future value formula to solve the result of the compounding effect at year 3.

FV formula;

FV = PV(1+r)^n

PV = 800

discount rate; r = 12% or 0.12

total duration of investment; n = 3

therefore; FV = 800(1+0.12)^3

FV = 800 * 1.404928

FV = 1123.94

To the nearest whole dollar, the amount will grow to $1,124

6 0
2 years ago
Present Value of Ordinary Annuity Period/Rate 5% 6% 7% 8% 9% 10 7.7217 7.3601 7.0236 6.7101 6.4177 11 8.3064 7.8869 7.4987 7.139
klasskru [66]

Answer:

The discount rate of 8% for 11 year period provides the present value of annual cash flows to be equal to the initial investment.

Explanation:

Using the table of present value of annuity provided, we can check the rate and time period which is return the present value of cash flows from the project to be equal to initial Investment.

We are told that the Project's life is expected to be 11 Years. Thus using the 11 year period from the table we can see the following rates,

<u>11 Year Period</u>

Rate = 5%  ,  Annuity Factor = 8.3064  

Rate = 6%  ,  Annuity Factor = 7.8869

Rate = 7%  ,  Annuity Factor = 7.4987

Rate = 8%  ,  Annuity Factor = 7.1390

Rate = 9%  ,  Annuity Factor =  6.8052

We know that the annual cash flows from the project is $1,000,000 and we know the Initial Outlay is $7,139,000.

Multiplying the annual cash flow from the above annuity factors for each rate we can see which rate provides the present value of annual cash flows to be equal to initial outlay.

Rate = 5%  ,  Present value = 8.3064 *  1000000    = $8,306,400  

Rate = 6%  ,  Annuity Factor = 7.8869 *  1000000    = $7,886,900

Rate = 7%  ,  Annuity Factor = 7.4987 *  1000000    = $7,498,700

Rate = 8%  ,  Annuity Factor = 7.1390 *  1000000    = $7,139,000

Rate = 9%  ,  Annuity Factor =  6.8052 *  1000000    = $6,805,200

From the above calculation we can see that the rate of 8% provides the present value of annual cash flows to be equal to the initial investment.

7 0
3 years ago
Journalize the following transactions in the general journal: Sept. 1 Sold common stock for cash $60,000. 1 Paid rent for the mo
faust18 [17]

Answer: See explanation

Explanation:

September 1:

Debit Common stock $6000

Credit: Cash $60000

September 1:

Debit: Rent $1500

Credit: Cash $1500

September 3:

Debit: Cash $10000

Credit: Note payable $10000

September 3:

Debit: Cleaning Equipment $5,500

Credit: Cash $3,000

Credit: Account payable $2,500

September 4:

Debit: Supplies $4200

Credit: Cash $4200

September 10:

Debit: Cash $3500

Credit: Service revenue $3500

September 21:

Debit: Account receivable $3800

Credit: Service revenue $3800

September 23:

Debit: Account payable $2500

Credit: Cash $2500

September 28:

Debit: Bank $2800

Credit: Account receivable $2800

September 29:

Debit: Electricity expense $85

Credit: Electricity payable $85

September 30:

Debit: Wages $1950

Credit: Cash $1950

September 30:

Debit: Gasoline $275

Credit: Cash $275

September 30:

Debit Dividend $900

Credit Cash $900

3 0
2 years ago
In an organization in which high-level managers make the effort to involve others in decision making and seek opinions of others
NNADVOKAT [17]

Answer:

People or team oriented

Explanation:

The best organization culture is there when there is no comparison between the people who are working at different departments, different levels, etc

The rules, procedures, policies are all not for any single person

Here if the high level managers involves the others in decision making process and seek their opinions for the betterment of an organization that this represents the team oriented as the whole organization is working as a team so the same is to be considered

7 0
3 years ago
The Taffy Trust is a simple trust. Sean is its sole beneficiary. In the current year, the trust earns $12,000 in taxable interes
algol [13]

<u>Solution and Explanation:</u>

a. <u>Accounting income is computed below: </u>

Taxable interest 12,000.00

Rental income 30,000.00

Long term capital gain 0.00

Long term capital loss 0.00

Fees 0.00

Less: depreciation -2,800.00

Trust accounting income 39,200.00

<u>b.</u> One half of fiducary's fee = 6500 divided by 2 = 3250. This amount will be allocated to accounting income of the trust.

Taxable interest 12,000.00

Rental income 30,000.00

Long term capital gain 4,000.00

Long term capital loss -1,100.00

Fees -3,250.00

Depreciation -2,800.00

Trust accounting income 38,850.00

3 0
3 years ago
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