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jeka94
3 years ago
6

e−Bay Inc. provides the following information for the year​ 2015: Net income ​$250,000 Market price per share of common stock ​$

50 per share Dividends paid ​$180,000 Common stock outstanding at Jan.​ 1, 2015 ​150,000 shares Common stock outstanding at Dec.​ 31, 2015 ​200,000 shares The company has no preferred stock outstanding. Calculate the​ price/earnings ratio of common stock.
Business
1 answer:
Olegator [25]3 years ago
4 0

Answer:

34.96 times

Explanation

Calculation for the​ price/earnings ratio of common stock

First step is to find the earnings per share using this formula

Earnings per share =Net income/Average number of common shares outstanding

Let plug in the formula

Earnings per share=$250,000/( 150,000 shares +200,000 shares/2)

Earnings per share=$250,000/(350,000 shares/2)

Earnings per share=$250,000/175,000 shares

Earnings per share=$1.43

Last step is to Calculate the​ price/earnings ratio of common stock using this formula

Price/earnings ratio of common stock =Market price per share /Earnings per share

Let plug in the formula

Price/earnings ratio of common stock=​$50 per share/$1.43

Price/earnings ratio of common stock=34.96 times

Therefore the​ price/earnings ratio of common stock will be 34.96 times

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A particular​ country's exports of goods are increasing exponentially. The value of the​ exports, t years after 2007​, can be ap
Olegator [25]

Answer:

V(t) = $ 1.5 billion for 2007

V(t) = $1.5 billion, 295 million. For 2012

Doubling time = t = 177.69 yrs

Explanation:

a).

V(t) = 1.5e^(0.039t)

For the first year 2007, t= 0

V(t) = 1.5e^(0.039*0)

V(t). = 1.5e^0

V(t) =. 1.5*1 = 1.5

V(t) = $ 1.5 billion for 2007

For 2012 that is 5 years after,t= 5

V(t) = 1.5e^(0.0039*5)

V(t) = 1.5e^ (0.0195)

V(t) = 1.5(1.019691367)

V(t) = 1.5295

V(t) = $1.5 billion, 295 million.

b). Doubling time is when the value of the export is 1.5 *2 =$ 3 billion

3 = 1.5e^(0.0039t)

3/1.5= e^(0.0039t)

2 = e^0.0039t

In 2 = 0.0039t

0.693= 0.0039t

t = 177.69 yrs

7 0
3 years ago
During the second year of the equipment’s life, $21,900 cash is paid for a new component expected to increase the equipment’s pr
Alona [7]

Answer:

   S/N              ACCOUNT                                 DEBIT                  CREDIT

      1             Equipment                                   $22,000

                        Cash                                                                     $22,000  

                    Being payment for new component expected to increase the

                    equipment’s productivity by 10% a year

      2.           Equipment Repairs expenses      $6,250

                       Cash                                                                          $6,250

                    Being payment for equipment repair

     3.            Equipment                                       $14,870

                       Cash                                                                          $14,870

                    Being payment for equipment repair to prolong the useful life

                    the asset

Explanation:

The initial cost incurred in acquiring an asset is debited to asset account, subsequently every other cost spent on the assets are either expenses against the earning of that period or expensed over many years over the useful life of the asset.

Capitalization is the recognition of an expense as an asset in the balance sheet rather than expenses in the income statement.

The payment of $22,000 paid for the equipment productivity must be capitalized, that is added to the cost of the asset because it is a cost that is  expected to increase the equipment’s productivity by 10% a year.

The  $6,250  paid for normal repair is a revenue items which is to be expensed against the earning of that period.

The $14,870 paid for repairs which will increase the useful life of the equipment from four to five years is a capital expenditure which should capitalized, that is added to the cost of the asset.

7 0
3 years ago
Examples of items deducted to determine an employee's net pay are
lapo4ka [179]

All of these are correct. Each can be deducted to determine net pay.

6 0
3 years ago
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just olya [345]
I think the answer is B
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3 years ago
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1. If you are attending a two-year school and plan to transfer to a four-year school, you should
Gwar [14]

Answer:

Complete courses that may not transfer.

Explanation:

Transferring from a Two-Year College to a Four-Year College. If this is your plan, be sure that the classes you enroll in not only meet the requirements for your associate's degree but can also be put toward a bachelor's degree at the four-year colleges you're considering.

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3 years ago
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