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Maksim231197 [3]
3 years ago
14

Papa Roach Exterminators, Inc., has sales of $659,000, costs of $345,000, depreciation expense of $45,000, interest expense of $

22,000, and a tax rate of 40 percent. The firm paid out $109,000 in cash dividends, and has 30,000 shares of common stock outstanding.
a. What is the earnings per share, or EPS, figure?
b. What is the dividends per share figure?
Business
1 answer:
gulaghasi [49]3 years ago
4 0

Answer:

a. What is the earnings per share, or EPS, figure?

$4.94 / share

b. What is the dividends per share figure?

$3.63 / share

Explanation:

Sales                                            = $659,000

Costs                                            <u>= ($345,000)</u>

Gross Income                              = $314,000

Depreciation expense                <u>= ($45,000)  </u>

Operating Income                       = $269,000

Interest expense                         <u>= ($22,000)</u>

Profit before tax                          = $247,000

Tax 40%                                       <u>= ($98,800) </u>

Net Income                                  <u>= $148,200</u>

Dividend = $109,000

Common stock outstanding = 30,000 shares

a.

Earning per share = $148,200 / 30,000 = $4.94 / share

b.

Dividend per share = $109,000 / 30,000 = $3.63 / share

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zaharov [31]

Answer: The presence of asymmetric information

                                               

Explanation:  In simple words, asymmetric information refers to the situation when one party to a contract have extra information regarding a subject than the other party of the contract.

Asymmetric information creates the potential of misconduct from the leading party as they can easily cheat the other party by concealing that important information.

In the given case, Mr. Smith was aware that his laptop is not working properly but still he sold its to a customer who was not aware of it. Thus, we can conclude that the correct option is C.

5 0
3 years ago
The main reason for considering nonconstant growth in dividends is to allow for _____ growth rates over _____.
JulsSmile [24]

Based on the economic and financial analysis, the main reason for considering <u>nonconstant growth</u> in dividends is to allow for "<u>Supernormal</u>" growth rates over "<u>some finite length of time</u>."

This is because, in nonconstant growth, the growth rate cannot surpass the mandatory return indefinitely.

However, there is the probability that it could do so for some number of years.

Also, it should be noted that in this situation, the value of the stock equates to the present value of all the future dividends.

Hence, in this case, it is concluded that the correct answer is <u>supernormal</u> and <u>some finite length of time</u>.

Learn more here: brainly.com/question/13223703

7 0
3 years ago
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Answer:

1. Neither ; 2. Consumer Surplus ; 3. Producer Surplus

Explanation:

Consumer Surplus is the difference between a good's price paid by consumer, & maximum price the consumer is willing to pay for the good.

Producer Surplus is the difference between a good's price received by a seller, & minimum price at which the seller is willing to sell the good.

1. Willing to pay $209 for watch, buyer willing to sell at $196, no trade as price ceiling at $190 : It illustrates neither concept as transaction has not actually occurred, so no price established.

2. Willing to pay $39 for sweater, purchased it for $32 : It illustrates 'Consumer Surplus' case = $7 , as it shows difference between maximum willingness to pay by buyer ($39) & the actual buy price ($32)

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5 0
3 years ago
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Reptile [31]

Answer:

The correct answer is d. $0.31 per client-visit; $24,766 per month.

Explanation:

The costs can be of fixed nature or a variable nature or of a mixed nature. A mixed costs contains a component of both fixed and variable costs. The high-low method is used to calculate the variable component per unit of a mixed cost. Th formula for high low method is:

Variable cost per unit = (Highest activity cost - Lowest activity cost) / (Highest activity level - Lowest activity level)

the highest activity is in June, 13400 client visits and the highest cost is also of this activity. The lowest activity is in August, 11207 client visits and the lowest cost belongs to this activity.

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Variable cost per unit = $0.31 rounded off to two decimal places

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Taking 13400 activity,

The fixed component is = 28920 - (0.31 * 13400) = $24766 per month

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5 0
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saveliy_v [14]

Answer:

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Since in the question it is mentioned that the if the tasks are shared that rise the skills and ablities of the person than this would represent the personal related currencies and hence the same is to be considered

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