Answer:
The price per share should be $22.5
Explanation:
The price earnings multiple or P/E tells us how much price the investors are willing to pay for $1 earnings of the company.
We first need to calculate the earnings per share of the company.
Earnings per share = Net Income / Number of outstanding common shares
Earnings per share = 1500000 / 1000000 = $1.5 per share
Using the P/E for the industry, the price per share of Flintstone should be,
P/E = Price per share / Earnings per share
15 = Price per share / 1.5
15 * 1.5 = Price per share
Price per Share = $22.5
Answer:
True
Explanation:
According to the IRS:
- ordinary expenses are expenses that are common and accepted in a company's trade or industry.
- necessary expenses are expenses that help your company carry on its normal business.
Tax deductible expenses must be ordinary, necessary, and reasonable.
<h2>Copyright Protection
</h2>
- A copyright will protect the following categories of works:
literary works
- musical works, including any accompanying words
- dramatic works, including any accompanying music
- pantomimes and choreographic works
- pictorial, graphic and sculptural works
- motion pictures and other audiovisual works
- computer programs (sometimes the graphical user interface) and websites
<h2>Patents
</h2>
Patents protect processes, methods and inventions that are "novel," "non-obvious" and "useful." If granted, a patent gives you a 20-year monopoly on selling, using, making or importing an invention into the United States.
(These are 2 characteristics of property rights)
Answer:
(1)
Fees revenues 42,600
Total expenses 1.92 x 4260 = 8179.2
<em>Net income 34,420.8</em>
<em>(2)</em>
Fees revenues 42,600
Variable cost 2,982
Contribution Margin 39,618
Fixed Cost 14,400
Net Income 25,218
Explanation:
(1)
We multiply by the garment cleaned
10 x 4,260 = 42,600
0.7 x 4,260 = 2982
and distribute the fixed cost among the normal capacity
14,400 / 7,500 = 1.92 fixed cost per garment cleaned
.7 + 1.92 = 2.62 cost per garment
(2)
We do not include the fixed cost in the unit cost, we subtact them completely as an expense.
