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vitfil [10]
4 years ago
13

Richards Corporation had net income of $231,971 and paid dividends to common stockholders of $58,300. It had 55,100 shares of co

mmon stock outstanding during the entire year. Richards Corporation's common stock is selling for $66 per share. The price-earnings ratio (rounded to two decimal places) is:_________
Business
1 answer:
Karolina [17]4 years ago
8 0

Answer:

It is 15.68 times

Explanation:

Price-Earnings Ratio = Market Price per share (MPS)/Earning per share (EPS).

Where EPS = $231,971 /55,100

                   = $4.21

Hence, Price-Earnings Ratio = 66/4.21

                                               =15.68 times

P/E ratio shows the expectations of the market and is the price you  pay per unit of current earnings.

The  ratio is as well being used for valuing companies and to find out whether they are overvalued or undervalued most especially by the investors.

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Willetta Company purchases inventory for $18,000 with terms 2/10, n/30. It then returns $2,800 of the inventory purchased to the
kvv77 [185]

Answer:

The amount of discount that will be taken is $300.4

Explanation:

The amount of discount that will be taken will be on the value of accounts payable that is eligible for pay after adjustments.

The accounts receivable balance after adjusting for purchases returns and defective goods is:

Accounts receivables eligible for payment = 18000 - 2800 - 180 = $15020

The accounts payable amount that is eligible for discount is:

Discount received = 15020 * 0.02 = $300.4

4 0
3 years ago
Statement
RoseWind [281]
<span>due to new regulations, gas stations that would like to pay better wages in order to hire more workers are prohibited from doing so.  - PRICE CEILING ; BINDING

</span><span>the government has instituted a legal minimum price of $2.70 per gallon for gasoline. - PRICE FLOOR ; BINDING

</span><span>the government prohibits gas stations from selling gasoline for more than $3.40 per gallon. - PRICE CEILING ; BINDING</span>
7 0
3 years ago
The director of research has asked you to produce a pro forma valuation of a target company using leveraged buyout analysis. A c
statuscvo [17]

6.8  will be the debt-to-EBITDA ratio.

EBITDA* 8.5=Transaction Value

(Transaction value * 0.8) / EBITDA = 6.8

EBITDA, or earnings before interest, taxes, depreciation, and amortization, is a measure of a company's overall financial performance and is used as an alternative to net income in certain circumstances. However, EBITDA can be misleading because it does not reflect the cost of capital investments such as property, plant, and equipment.

This metric also excludes debt-related expenses by adding interest and tax costs to revenues. However, it is a more accurate measure of business performance as it is able to report profit before the effect of accounting and financial deductions.

Learn more about the debt-to-income ratio here: brainly.com/question/24814852

#SPJ4

4 0
2 years ago
A stock that sold for $22 at the beginning of the year was sell- ing for $24 at the end of the year. If the stock paid a dividen
MrRa [10]

Answer:

11.36%

Explanation:

Given:

Selling cost of the stock at the beginning of the year = $22

Selling cost of the stock at the End of the year = $24

Dividends received = $0.50 per share

Thus,

The actual amount received at the end of the year

= Selling cost of the stock at the End of the year + Dividends received

= $24 + $0.50

= $24.50

thus,

the interest received = $24.50 - $22 = $2.50

therefore, the rate of interest = \frac{\textup{Interest}}{\textup{Initial amount}}\times100

or

the rate of interest = \frac{2.50}{22}\times100

or

the rate of interest = 11.36%

7 0
3 years ago
Researchers have defined the marketing problem. what is the next step in the marketing research process? A. Interpret the data.
lawyer [7]

I think the answer would be C. Recommend a solution.

The Process

1. Design the study

2. Collect the data

3. Interpret the data

4. Defined the marketing problem

5. Recommend a solution

6 0
4 years ago
Read 2 more answers
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