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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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Answer:

The Journal Entry is as follows:

Loss on Impairment $8,400

Debt Investment ($8,400)

Explanation:

Given.

Carrying Value = $79,200

Decreased Value = $70,800

Differences = $79,200 - $70,800

Differences = $8,400

Since the loss in value is determined, uncollectible.

The required entry on the journal entry are the amount loss on impairment and the amount invested on debt.

The Journal Entry is as follows:

Loss on Impairment $8,400

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7 0
3 years ago
Aces, Inc., a manufacturer of tennis rackets, began operations this year. The company produced 6,000 rackets and sold 4,900. At
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Answer:

$165,500

Explanation:

Given that,

Sales (4,900 × $90) = $ 441,000

Cost of goods sold (4,900 × $38) = 186,200

Gross margin = $ 254,800

Selling and administrative expenses = $75,000

Net income = $ 179,800

Production costs per tennis racket total = $38

Variable production cost = $25

Fixed production cost = $13

Units produced = 6,000

Contribution margin:

= Sales - Variable production costs

= $441,000 - (4,900 × 25)

= $441,000 - $122,500

= $318,500

Fixed costs = Fixed production costs + Selling and administrative expenses

                   = ($13 × 6,000) + $75,000

                   = $78,000 + $75,000

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8 0
3 years ago
The operations vice president of security home bank has been interested in investigating the efficiency of the bank’s operations
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The costing study of bank operation goes thus:

<h3 /><h3>Opening accounts:</h3>

Distribution of Resource Amount Percentage Amount

Teller wages $160,000 x 5% = $8,000

Asst. branch manager salary $75,000 x 15% = $11,250

Branch manager salary $80,000 x 5% = $4,000

Total $23,250

Activity rate of opening accounts = Total cost of opening accounts / new accounts opened

Activity rate = $23,250 / 500 = $46.50 per new account

<h3>Processing deposits and withdrawals:</h3>

Distribution of Resource Amount Percentage Amount

Teller wages $160,000 x 65% = $104,000

Asst. branch manager salary $75,000 x 5% = $3,750

Branch manager salary $80,000 x 0% = $0

Total $107,750

Activity rate of opening accounts = Total cost of processing deposits and withdrawals / deposits and withdrawals processed

Activity rate = $107,750 / 100,000 = $1.08 per deposit and withdrawal processed

<h3> Processing other customer transactions:</h3>

Distribution of Resource Amount Percentage Amount

Teller wages $160,000 x 20% = $32,000

Asst. branch manager salary $75,000 x 30% = $22,500

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Activity rate = $62,500 / 5,000 = $12.50 per other customer transactions processed

learn more about costing of bank operation from here: brainly.com/question/988393

4 0
2 years ago
Suppose that the market for labor is initially in equilibrium. If the firm employs labor-saving technology, the equilibrium wage
ZanzabumX [31]

Suppose that the market for labor is initially in equilibrium. If the firm employs labor-saving technology, the equilibrium wage and the quantity of labor will both rise.

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The labor market is in equilibrium when supply equals demand; E* workers are employed at a wage of w*.

In equilibrium, all persons who are looking for work at the going wage can find a job.

<h3>What is equilibrium wage rate?</h3>

The equilibrium market wage rate is at the intersection of the supply and demand for labor.

Employees are hired up to the point where the extra cost of hiring an employee is equal to the extra sales revenue from selling their output.

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1 year ago
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Answer:

The correct answer is c) The ability to fulfill assigned responsibilities and the qualifications for advancement

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