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Rudiy27
3 years ago
14

Becker Products is a manufacturer and distributor numerous food products. The company recently reported earnings per share of $5

.50. Based on its recent price of $85.30 the company has a PE ratio of 15.5. Becker Products is part of the food processing industry which has an industry PE ratio of 19.75. Using industry information, estimate the intrinsic value of Becker Products’ equity per share?
Business
2 answers:
lbvjy [14]3 years ago
4 0

Answer:

$108.63

Explanation:

PE ratio of industry=Share price/EPS

19.75*5.5=Share price

Share price =$108.63

atroni [7]3 years ago
3 0

Answer:

The intrinsic value = $469.15

Explanation:

<em>The price earning (P/E) ratio can be used to determine the price of a stock. This is done as follows:</em>

Price = EPS × P/E ratio

It is appropriate to use the industry average price-earning ratio   for the purpose of this valuation.

The intrinsic value = 19.75 × $5.50 = $469.15

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5 0
3 years ago
An analysis of comparative balance sheets, the current year's income statement, and the general ledger accounts of Wellman Corp.
RUDIKE [14]

Answer:

Explanation:

There are three types of activities in the cash flow statement which are described below:  

1. Operating activities: It includes those transactions which affect the working capital after net income. The increase in current assets and a decrease in current liabilities would be deducted whereas the decrease in current assets and an increase in current liabilities would be added.  

These changes in working capital would be adjusted. Moreover, the depreciation expense is added to the net income  and the dividend and interest is received is recorded in this activity.

The loss and gain on sale of the assets is also recorded and amortization on intangible asset is also recorded

2. Investing activities: It records those activities which include purchase and sale of the long term assets. The purchase is an outflow of cash whereas sale is an inflow of cash

3. Financing activities: It records those activities which affect the long term liability and shareholder equity balance. The issue of shares is an inflow of cash whereas redemption and dividend is an outflow of cash.

The categorization is shown below:

(1) Exchange of land for patent - Non-cash investing and financing activity as it does not involve any cash transaction

(2) Sale of building at book value - Investing activity

(3) Payment of dividends - Financing activity

(4) Depreciation - Operating activity

(5) Receipt of dividends on investment in stock - Operating activity

(6) Receipt of interest on notes receivable - Operating activity

(7) Issuance of capital stock -  Financing activity

(8) Amortization of patent - Operating activity

(9) Issuance of bonds for land - Non-cash investing and financing activity as it does not involve any cash transaction

(10) Purchase of land - Investing activity

(11) Conversion of bonds into common stock - Non-cash investing and financing activity as it does not involve any cash transaction

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(13) Retirement of bonds - Financing activity

7 0
3 years ago
stereo corp. produces radios. the following information on inventory and production pertains to the year 2017. total manufacturi
Ugo [173]

The cost of goods manufactured at stereo corp. in the year 2017 is $285,000.

What is Manufacturing?
Manufacturing is the process of <u>turning raw materials or sections into finished goods using tools, human labour, machinery, and chemical products.</u>

Manufacturing enables companies to sell finished goods at a price higher than the cost of the materials used. Huge manufacturing allows for the mass production of goods using assembly line procedures and sophisticated technology as core assets. Manufacturing techniques that are efficient allow manufacturers to start taking advantage of scale economies of scale, generating more units at the a lower cost. Manufacturing is a vital and significant component of the economy. It entails the transformation of raw materials such as <u>ore, timber, and food </u>into finished goods such as <u>metal goods, soft furnishings, and processed foods.</u>

To lean more about manufactured
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3 0
1 year ago
Revenue on account amounted to 54,000. Cash collections of accounts receivable amounted to $2,300. Expenses for theperiod were 5
Georgia [21]

Answer:

Option (D) is correct.

Explanation:

Given that,

Revenue on account = $54,000

Cash collections of accounts receivable = $2,300

Expenses for the period = $52,100

company paid dividends = $450

Net income for the period:

= Revenue on account - Expenses for the period

= $54,000 -  $52,100

= $1,900

Therefore, the net income for the period is $1,900.

8 0
3 years ago
Phone calls are:________.
Y_Kistochka [10]

Answer:

The correct answer is letter "C": capable of offering the give-and-take of in-person conversations.

Explanation:

While talking about channels of communication, phone calls are useful to imitate the closest possible to face-to-face communication, with its limitations. The transmission of information is done in real-time and the participants can provide their points of view just as if they were talking in person.  

Though, expressions cannot be captured. Many people over the phone can pretend to have a mood modulating their tone of voice even if their feelings are opposite.

8 0
3 years ago
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