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stepladder [879]
3 years ago
15

The board of directors of McKay Company has approved a 20% stock dividend. The firm currently has net income of $900,000. There

are 300,000 common shares outstanding and the stock has a P/E ratio of 8. What will be the firm's common stock price after the stock dividend? Group of answer choices
Business
1 answer:
nlexa [21]3 years ago
6 0

Answer:

$20

Explanation:

Current Stock Price:

= (Net income ÷ common shares outstanding) × P/E ratio

= (900,000 ÷ 300,000) × 8

= $24

No of Stock Dividend issued:

= common shares outstanding × Percent of stock dividend approved

= 300,000 × 20%

= 60,000

No of Outstanding Sharing share after stock dividend:

= common shares outstanding + No. of Stock Dividend issued

= 300,000 + 60,000

= 360,000

Common stock price after the stock dividend:

= = (Net income ÷ common shares outstanding after stock dividend) × P/E ratio

= (900,000 ÷ 360,000) × 8

= $20

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During the initiation phase, what does project selection help to do
Strike441 [17]

Answer:

During the initiation phase, what does project selection help to do?

The initiation phase entails the starting point of the project, project selection comes in after the scope, objectives and how it would be delivered has been defined thoroughly. Project selection helps to make decision to know when the project would be ready for delivery, also the format of execution would be known, furthermore, any deviation from the initiation would be detected early and corrected if there is any

Explanation:

5 0
3 years ago
Ohlson Co. is preparing an Excel spreadsheet for its 20-year, 4.5%, $500,000 bonds payable. The bonds were issued on January 1 t
uranmaximum [27]

Answer:

=E7*C2/2

Explanation:

The interest expense will be the carrying value of the bond times the effective interest rate.

On cell C8 we have the interest expense

On E7 we have the carrying value which is the outstanding balance.

Then, on C2 we got the effective rate

As this is an annual formula, we must divide by two to convert to semiannual rate.

A file is attached for how the excel sheet looks like

6 0
2 years ago
Marketing programs that track purchases history, personal information and preferences and provide incentives to loyal, repeat cu
Over [174]

Marketing programs that track purchase history and provides incentive to their loyal customers are known as loyalty programs.

The correct answer to this question is option A. Loyalty programs as the name implies are offered to those customers that are found to be loyal to a business.

These types of programs offer special discounts, rewards, as a way to retain these customers and also attract new ones.

Such programs are established to encourage repeat business.

Read more on brainly.com/question/15216794?referrer=searchResults

5 0
2 years ago
Categorize each statements as a component of Gross Domestic Product (GDP): consumption, investment, government, or net exports.
Natasha2012 [34]

Answer:

-Consumption: ice cream, a domestically manufactured personal computer, cab fare for personal use, 55 cent tacos, A super bowl ticket bought new from the NFL

- Investments: A domestically manufactured business computer

-Government: A public school teacher

-Net Exports: An exported doll house

Explanation:

Gross Domestic Product is the market value of goods and services produced locally within a given period. GDP includes goods and services produced during a particular time interval. In the past, bargains for products produced are not reflected in GDP. Usually this interval is years or quarters.

Consumption contains produced goods and services. It is used by people to meet their needs and wishes. In the Keynesian economy, consumption means individual consumption expenditure and is indicated by the consumption function. The most important part of the consumption function is the marginal consumption trend. MPC shows what percentage of each new income earned is used for consumption expenditures.

Public expenditure, in economy, indicates the complex of money of public origin that is used by the State in public goods and / or public services aimed at pursuing public purposes, regardless of the nature (public or private) of the obligation that is the title . These are therefore the exits by the state and therefore an item of liabilities within the state budget, the coverage of which is necessarily entrusted to taxation on taxpaying citizens or public debt. Otherwise, the repercussions are of an inflation or devaluation type, depending on the domestic or foreign destination of the capital.

Trade balance (Trade deficit) or Net Export is the balance of trade (export, import) of one country (with other countries). Based on this, the Trade Balance (Foreign Trade Balance) is the relationship between exports and imports. If the country's exports are greater than the import, net exports will be greater than 0, and in this case, the country's foreign trade balance will increase (a positive balance). In a word, the trade balance is positive. Otherwise, net exports will be less than 0 if the country exports are smaller than imports. In this case, the country will have a foreign trade deficit. In other words, the trade balance will be negative. The negative trade balance also indicates that the country needs foreign products in addition to its own products.

7 0
3 years ago
What is an amount of money multiplied by the interest rate and the amount of time that the money will be earning interest? Prese
laiz [17]

This is future value by defnition

6 0
3 years ago
Read 2 more answers
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