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Norma-Jean [14]
3 years ago
11

Earnings per Share and Price-Earnings Ratio A company reports the following: Net income $1,306,000 Preferred dividends $74,000 S

hares of common stock outstanding 80,000 Market price per share of common stock $97.02 a. Determine the company's earnings per share on common stock. Round your answer to the nearest cent. Use the rounded answer of requirement a for subsequent requirement, if required. $ b. Determine the company's price-earnings ratio. Round to one decimal place.
Business
1 answer:
mina [271]3 years ago
5 0

Answer:

(a) The company's earnings per share on common stock is $ 15.40

(b) The company's price-earnings ratio is 6.3

Explanation:

Net income = $1,306,000

Preferred dividends = $74,000

Shares of common stock outstanding = 80,000 shares

Market price per share of common stock = $97.02

(a) Earnings per share = (Net income−Preference dividend ) ÷ Shares outstanding

=  ($1,306,000−$74,000 ) ÷ 80,000 shares

=  $1,232,000  ÷ 80,000 shares

= $ 15.4

(b) Price-Earnings ratio =  Market price per share  ÷ Earnings per share

=  $97.02 ÷ $15.40 per share

= 6.3

​

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On March 25, 2021, Phillips Corporation purchased bonds of Atlas Corporation for $132 million and classified the securities as t
ValentinkaMS [17]

Answer:

An unrealized holding gain of $28 million in 2019.

Explanation:

At the financial year-end, the company have to reevaluate the investment to recognize the gain or loss.  

If the fair value is higher than actual investment, the company gain and vice versa it lost.

In this scenario, the fair value adjustment = the valuation on 31st December – purchased value = $150 million - $132 million = $28 million.

Because this step is just an approach to record new valuation of investment, then it’s consider unrealized.

In short, Phillips Corporation should first update the fair value adjustment of $28 million on December 31 2021

4 0
3 years ago
A truck acquired at a cost of $285,000 has an estimated residual value of $14,100, has an estimated useful life of 43,000 miles,
777dan777 [17]

Answer:

a. $270,900

b. $6.30

c. $24,570

Explanation:

(a) The depreciable cost = $270,900

(b) The depreciation rate = $6.30

(c) The units-of-activity depreciation for the year =- $24,570

8 0
3 years ago
The distribution of 27 salaries at a small company has mean $35,000 and standard deviation $2,000. Suppose the company hires a 2
bonufazy [111]

Answer:

Correct option is (c)

Explanation:

Mean is the average of values in a data set. Range is the difference between highest and lowest values in the data set and median is the mid point (value) that separates lower and higher values in a data set.

If a data point is added, in this case 28th employee is added, definitely mean will change. If data point higher than existing mean is added,  then mean will increase. Median and range may or may not change depending on the value added or removed.

In this case, mean is likely to increase since 28th employee's salary is more than existing mean.

7 0
3 years ago
uppose a Starbucks tall latte cost $4.00 in the United States, 5.00 euros in the euro area and $2.50 Australian dollars in Austr
max2010maxim [7]

Answer: Nether Australia or Europe

Explanation:

Purchasing power parity is a notion that states that prices of the same or similar goods should have the same price across the world after adjusting for exchange rate differences.

If the price of a tall latte in the U.S. is $4,00, it should be the same price in Europe and Australia after exchange rate adjustments.

$4.00 in Euro is:                                                  $4.00 in Australian dollars is:

= 4 * 0.8                                                                 = 4 * 1.4

= €3.20                                                                 = $5.60

Purchasing power parity does not hold in wither countries because the prices of the lattes are not equal to the $4.00 in the U.S. after adjustments for exchange rates.

4 0
3 years ago
Organizational culture refers to:_________.
Pani-rosa [81]

Answer:

e.A set of values,ideas,attitudes and norms of behaviour that is learned and shared among the members of an organisation.

5 0
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