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pshichka [43]
3 years ago
6

Sixty-second Avenue Inc. expects to earn $5,700,000 this year. The company currently has 790,000 shares outstanding, and the sha

res have a per-share market price of $21. Assuming that Sixty-second Avenue’s price-to-earnings (P/E) ratio remains constant and its earnings are unaffected by a share repurchase transaction, then the company’s expected market price per share—if it repurchases 90,000 shares at the current market price—should be
Business
1 answer:
11111nata11111 [884]3 years ago
7 0

Answer:

The company's expected market price per share After the repurchase would $23.68

Explanation:

In order to calculate the company's expected market price per share After the repurchase we would have to calculate first the Price-to-earnings ratio ( P/E ratio ) as follows:

Price-to-earnings ratio ( P/E ratio )= Market price per share / Earnings per share

Earnings per share = Earnings/ number of shares outstanding =$ 5,700,000 / $790,000 = $ 7.21

Therefore, Price -to-earnings ratio = $ 21 / $ 7.21 = 2.91

If 90,000 shares are repurchased, Therefore Earnings per share =$ 5,700,000 / $700,000 = $ 8.14

Therefore, the company's expected market price per share After the repurchase=$ 8.14 x 2.91 = $23.68

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Using the following national income accounting data, compute (a) GDP, (b) NDP, and (c) NI. All figures are in billions.Category
Ymorist [56]

Answer:

a. $343.7 billion

b.  $331.9 billion

c. $334.1 billion

Explanation:

The computation is shown below:

a. For GDP

GDP = Personal consumption expenditures + Government purchases + Net private domestic investment + Consumption of fixed capital + net exports

where,

Net exports = U.S. exports of goods and services - U.S. imports of goods and services

= $17.8 - $16.5

= $1.3 billion

So, the GDP would be

= $219.1 + $59.4 + $52.1 + $11.8 + $1.3

= $343.7 billion

b. For NDP

NDP = GDP - Consumption of fixed capital or depreciation

        = $343.7 - $11.8

        = $331.9 billion

c. For NI

NI = GDP + Net foreign income

    = $331.9 billion + 2.2 billion

    = $334.1 billion

All values are in billions

         

5 0
3 years ago
Shane wants to invest money in a 6% CD account that compounds semiannually. Shane would like the account to have a balance of $1
masya89 [10]

Answer:

Amount deposit = $118,411.4 (Approx.)

Explanation:

Given:

Future amount = $150,000

Rate of interest = 6% compounds semiannual

Number of year = 4 year

Find:

Amount deposit

Computation:

Compounds semiannual

So,

Rate of interest = 6% / 2 = 0.03

Time taken = 4 x 2 = 8 times

So,

A = P[1+r]ⁿ

150,000 = p[1+0.03]⁸

150,000 = p[1.03]⁸

150,000 = p[1.26677]

p = 150,000 / 1.26677

p = 118,411.393

Amount deposit = $118,411.4 (Approx.)

4 0
2 years ago
​When participants in one treatment condition have characteristics that are different from the characteristics of participants i
maw [93]

Answer:Internal validity

Explanation: Internal validity is a term used in research to describe how well experiments or researches are done, it is usually used to shows whether it avoids confounding, The less chance for confounding in a study, the higher its internal validity.

Internal validity tends to show the soundness of an experiment or research, it also shows how many Confounding variables you have in your experiment or research.

4 0
3 years ago
Omni Corporation's accumulated depreciation—equipment account increased by $5,300, while $3,400 of patent amortization was recog
dmitriy555 [2]

Answer:

Cashflow from Operating Activities

Net Income                                                                 $120,400

Adjastment for Non-Cash Items

Depreciation                                                                  $5,300

Amortization                                                                   $3,400

Adjastments of Items appearing elsewhere

Loss from the sale of land                                            $4,000

Net Cash flow from operating activities                    $133,100

Explanation:

Net Income is reconciled in the cashflow statement via the indirect method. Its is adjasted for Non-Cash Items, Items appearing elsewhere in the cashflow statement and Working Capital Movements

8 0
3 years ago
Vicky Robb is considering purchasing the common stock of Hawaii Industries, a rapidly growing boat manufacturer. She finds that
Sergio [31]

Answer:

P0 = $51.9956 rounded off to $52.00

Explanation:

The two stage growth model of DDM will be used to calculate the price of a stock whose dividends are expected to grow over time with two different growth rates. The DDM values a stock based on the present value of the expected future dividends from the stock.

The formula for price of the stock today under this model is,

P0 = D0 * (1+g1) / (1+r)  +  D0 * (1+g1)^2 / (1+r)^2  +  ...  +  D0 * (1+g1)^n / (1+r)^n  + [ (D0 * (1+g1)^n * (1+g2) / (r - g2)) / (1+r)^n ]

Where,

  • D0 is the dividend today or most recently paid dividend
  • g1 is the initial growth rate which is 20%
  • g2 is the constant growth rate which is 8%
  • r is the required rate of return

P0 = 2.5 * (1+0.2) / (1+0.15)  +  2.5 * (1+0.2)^2 / (1+0.15)^2  +  

2.5 * (1+0.2)^3 / (1+0.15)^3  +

[(2.5 * (1+0.2)^3 * (1+0.08) / (0.15 - 0.08) / (1+0.15)^3)

P0 = $51.9956 rounded off to $52.00

3 0
3 years ago
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