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kvv77 [185]
3 years ago
13

Brookman Inc.’s latest EPS was $2.75, its book value per share was $22.75, it had 315,000 shares outstanding, and its debt/total

invested capital ratio was 44%. The firm finances using only debt and common equity and its total assets equal total invested capital.
How much debt was outstanding?

a) $4,586,179 b) $4,827,557 c) $5,081,639 d) $5,349,094 e) $5,630,625
Business
1 answer:
ololo11 [35]3 years ago
6 0

Answer:

Option (E) is correct.

Explanation:

EPS = $2.75

Book Value Per Share = $22.75

Shares Outstanding = 315,000

Debt Ratio = 44%

Total equity = Shares outstanding ×  Book Value Per Share

                    = 315,000  ×  $22.75

                    = $7,166,250

Total assets = Total equity ÷ (1 - Debt Ratio)

                    = $7,166,250 ÷ (1 - 0.44)

                    = $12,796,875

Total Dept = Total assets - Equity

                  = $12,796,875 - $7,166,250

                  = $5,630,625

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You own a stock which has produced annual returns of 11 percent, 3 percent, 8 percent, and 14 percent over the past four years,
Nana76 [90]

Answer:

C) 9.00; 8.92

Explanation:

The arithmetic rate of return is given by:

R_{A} = \frac{11+3+8+14}{4} \\R_{A} = 9.00

The geometric rate of return is given by:

R_{G} =  (\sqrt[4]{(1.11*1.03*1.08*1.14)} -1) *100 \%\\R_{G} =  (1.0892-1) *100 \%\\R_{G} =  8.92

Therefore, the arithmetic rate of return is 9.00 percent and the geometric rate of return is 8.92 percent

The answer is C) 9.00; 8.92.

6 0
3 years ago
Lunchco Inc. produces picnic tables in a two-step process. Pretreated wood is cut in the Cutting Department and then the lumber
babunello [35]

Answer: company’s direct labor budget = $320000

Explanation:

Given that,

Standard hourly labor rate in the Cutting Department = $12

It takes 30 minutes of direct labor time to cut the lumber

Tables take one hour to assemble

Standard hourly rate in the Assembly Department = $10

Lunchco’s production budget = 20,000

Cutting Department =  production budget × direct labor time × Standard hourly labor rate

= 20000 × 0.5 hours/unit × $12/unit

= $120000

Assembly Department = production budget × Tables take one hour to assemble  × Standard hourly labor rate

= 20000 × 1 hour/unit × $10/unit

= $200000

Therefore,

company’s direct labor budget = Assembly Department + Cutting Department

= 200000 + 120000

= $320000

5 0
2 years ago
When Opryland Hotel wants to have at least 90 percent of its customers indicating they had a memorable and satisfying experience
Darya [45]

Answer: 3. A marketing objective

Explanation:

Marketing objectives are goals set by a business when promoting its products or services to potential consumers that should be achieved within a given time frame. In other words, marketing objectives are the marketing strategy set in order to achieve the overall organizational objectives.

Marketing objectives are short-term achievements to help you achieve longer-term goals. They should be set on a weekly or monthly timeline. These objectives help a business set out what a business wants to achieve from its marketing strategy.

4 0
3 years ago
Read 2 more answers
Clampett, Inc., has been an S corporation since its inception. On July 15, 2020, Clampett, Inc., distributed $44,000 to J.D. His
Serjik [45]

Answer:

-$8,600

Explanation:

Data provided in the question:

Distributions = $44,000

Basis = $42,000

Amount of ordinary income allocated = $10,600

Now,

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= Distribution - Basis -  Amount of ordinary income allocated

= $44,000 - $42,000 - $10,600

= -$8,600

here, negative sign depicts there is a capital loss

8 0
3 years ago
The current market interest rate for $1,000, 10-year bonds of large corporations in the food industry is 6.3 percent. If a large
pochemuha

Answer:

Convertible bonds

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One advantege of convertible bonds for the issuer is that bondholders are willing to accept a loxer interest rate because they have an option of converting their bonds to common stock.  

If a company wants to issue bonds at an interest rate that is lower than the current market interest rate, they should offer convertible bonds.

6 0
3 years ago
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