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inysia [295]
3 years ago
6

Richards Corporation had net income of $166,152 and paid dividends to common stockholders of $48,100. It had 51,600 shares of co

mmon stock outstanding during the entire year. Richards Corporation's common stock is selling for $70 per share. The price-earnings ratio (rounded to two decimal places) is
Business
1 answer:
Sphinxa [80]3 years ago
7 0

Answer:

21.74 times

Explanation:

The price-earnings ratio refers to the ratio of stock price to the earnings per share.

Given that,

Net income = $166,152

Paid dividends to common stockholders = $48,100

Common stock outstanding during the entire year = 51,600

Selling price of common stock = $70 per share

First, we have to calculate the earning per share.

Earning per share:

= Net income ÷ Common stock outstanding

= $166,152 ÷ 51,600

= $3.22

Price-earnings ratio:

= Market price ÷ Earnings per share

= $70 ÷ $3.22

= 21.74 times

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Wildhorse Co. took a physical inventory on December 31 and determined that goods costing $198,500 were on hand. Not included in
timofeeve [1]

Answer:

$249,500

Explanation:

Calculation for the amount that Sheridan should report as its December 31 inventory

Using this formula

December 31 inventory=Goods costing+Goods purchased +Goods sold

December 31 inventory=$198,500+$25,000+$26,000

December 31 inventory=$249,500

Therefore the amount that Sheridan should report as its December 31 inventory will be $249,500

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3 years ago
When the price of a product​ changes,
balu736 [363]

C relative price » sub effect & income effect

4 0
3 years ago
The case study method is most effective in:A. Proving out theoryB. Narrowing the gap between theory and practiceC. Simulating re
tino4ka555 [31]

Answer:

Letter B is correct. <u>Narrowing the gap between theory and practice.</u>

Explanation:

Case study is an investigative methodological approach applied to simple or applied social sciences. It is carried out through the use of different qualitative methods for the collection of data and information relevant to the foundation of the research. The qualitative method is the most appropriate in a case study, as it occurs through subjective and not substantially statistical means of in-depth analysis of relevant factors in an event, an individual, an institution, a group and others.

Case studies can be classified as:

  • exploratory,
  • descriptive, or
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So it is correct to state that the purpose of the case study is to reduce the difference between theory and practice. Because the analysis of the information collected and the variables and patterns found will provide subsidies for the discussion and better understanding and reasoning between what happens between the theory and the practice analyzed in the case study.

3 0
3 years ago
Assume that interest rates on 20-year Treasury and corporate bonds with different ratings, all of which are noncallable, are as
Elina [12.6K]

Answer:

The question is missing the options which are below:

A Real risk-free rate differences.  

B Tax effects.  

C Default risk differences.  

D Maturity risk differences.  

E Inflation differences.  

The correct answer is option C,default risk differences.

Explanation:

Default risk is the increase in return given to an investor to compensate the investor for the likely losses that may arise due to the inability of the borrower to make funds available to the investor on the maturity date or even in required amount.

Different debt instruments have different default risk depending on their credit rating as rated by international rating agencies.Such rating is a function of many factors,which includes:

Balance sheet position

Profitability

Liquidity strength of the company

Macro-economic factors and some others.

Liquidity refers to the ability of the company to settle obligations such as repayment of bonds and interest  when due.

Invariably,liquidity has a higher impact in determining credit rating as well as default risk of an instrument.

3 0
3 years ago
What happens to supply when input costs go up?
nordsb [41]
Supply costs also go up
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3 years ago
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