1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Elena L [17]
3 years ago
11

Lark had net income for 2018 of S103,000. Lark had 38,000 shares of common stock outstanding at the beginning of the year and 44

,000 shares of common stock outstanding at the end of the year. There were 5,000 shares of preferred stock outstanding all year. During 2018, Lark declared and paid preferred dividends of $29,000. On December 31, 2018, the market price of Lark's common stock is $35.00 per share and the market price of its preferred stock is $55.00 per share. What is Lark's price eamings ratio at December 31, 2018 (Round any intermeciate calculations and your final answer to the nearest cent.)
a. 13.93
b.30.56
c. 19.44
d. 14.95
Business
1 answer:
Kryger [21]3 years ago
7 0

Answer:

price earning ratio = 19.44 times

so correct option is c. 19.44

Explanation:

given data

net income =  $103,000

common stock outstanding beginning = 38,000 shares

common stock outstanding ending = 44,000 shares

preferred stock outstanding = 5,000 shares

paid preferred dividends = $29,000

common stock = $35.00 per share

market price preferred stock = $55.00 per share

to find out

Lark's price earnings ratio

solution

first we get here average no of equity share that is

average no of equity share = common stock outstanding beginning + common stock outstanding ending ÷ 2

average no of equity share = \frac{38000+44000}{2}

average no of equity share = 41000 share

and

earning per share will be here as

earning per share = ( net income - paid preferred dividends ) ÷ average no of equity share

earning per share =  \frac{103000-29000}{41000}

earning per share = $1.80

so here price earning ratio will be as

price earning ratio = \frac{market\ price\ common\ share}{earning\ per\ share}

price earning ratio = \frac{35}{1.80}

price earning ratio = 19.44 times

so correct option is c. 19.44

You might be interested in
Fill in both blanks with the correct terms: A _________ percentage of young people have debt than older generations, while their
Vinil7 [7]

Answer:

The correct answer is letter "C": Larger, lower.

Explanation:

According to different researches carried out across the U.S., young adults who are between 18 and 29 years old have a total debt to $1.05 trillion. Individuals' debt who are older than 70 is $1 trillion. The average debt amount that young adults (18-29) have is $22,000 while elder people from 50 years old and on is $36,000.

Then, <em>young adults have larger accumulated debt than elders and their debt amounts are lower as well.</em>

7 0
3 years ago
Read 2 more answers
Productivity is a relative measure, and must be compared to something else meaningful to be effective. What are the three ways o
exis [7]

Answer:

past performance, overall goal, other's performance.

Explanation:

Productivity can be measured to three main things, past performance, overall goal, others performance. Each of these are effective and meaninful factors to compare productivity to. They allow you to determine if productivity is increasing, decreasing, or if it could be better. If other individuals perfomance is better than yours and they are similar to you in every other factor then that means that your productivity can and should be better than what it currently is. Therefore, each one of these comparisons provide useful and valuable data.

5 0
3 years ago
When an employee complains to his or her employer about racial harassment, the employer should:________
Sonja [21]

When an worker complains to his or her organisation about racial harassment, the company ought to take action on that and make sure that no racial harassment occur within the employees.

<h3>What is racial harassment in workplace?</h3>

Racial harassment includes unwelcome and racially offensive behavior in the workplace. The harasser can be your supervisor, a supervisor in another area, a co-worker, or any one who does not work for your employer, such as a consumer or customer.

<h3>What qualifies as harassment?</h3>

Harassment can consist of things like verbal abuse, bullying, jokes, making faces and posting comments about you on social media. It also includes sexual harassment.

Learn more about racial harassment here:

<h3>brainly.com/question/19908071</h3><h3 /><h3>#SPJ4</h3>
8 0
1 year ago
Which is not one of the four major characteristics associated with a growing entrepreneurial firm?
Anastaziya [24]

Which isn't one of the 4 major characteristics related to a developing entrepreneurial firm: Inimitable

Entrepreneurial firms are companies that carry new products and services to the marketplace by using creating and seizing possibilities. Definition (2): “A firm which undertakes volatile ventures and engages in product-market innovation is known as an entrepreneurial company.

As some distance as entrepreneurial culture is going, it's far taken to be synonymous with constant of innovation. Amazon is a distinctly innovative corporation. In fact, in 2017, it turned into identified by a speedy employer as the maximum revolutionary organization.

Learn more about entrepreneurial firm here: brainly.com/question/353543

#SPJ4

5 0
2 years ago
Match the following terms:1. The mix of accounts/itAsset Structure 2. The mix of all accounts/items on the right hand side of th
Vesnalui [34]

Answer:

Matching terms:

1. The mix of accounts/Asset Structure

D. Asset Structure

2. The mix of all accounts/items on the right hand side of the balance sheet

C. Financial Structure

3. The mix of longer term items on the right side of the balance sheet explicitly used to fund the corporation:

B. Capital Structure

4. The ratio of debt to total assets:

A. Leverage

Explanation:

Options and definitions:

A. Leverage: the amount of debt a firm uses to finance its assets.

B. Capital Structure: the combination of long-term debt and equity.

C. Financial Structure: the mix of all of a company's liabilities and its equities.

D. Asset Structure: the distribution of a firm's asset base in different asset categories, like buildings, plant, and equipment.

8 0
3 years ago
Other questions:
  • As one of the top managers at DropLabs, Henry ensures that all his employees are given the right to speak freely with their mana
    5·2 answers
  • .Which economic condition of the 1920s was amajor cause of the Great Depression?(1) Farm prices rose dramatically.(2) Industry o
    6·2 answers
  • A landowner in fee simple signed a promissory note for $10,000 to a bank, and secured the note by a mortgage of her land to the
    7·1 answer
  • Christie makes changes to her budget at the end of every month. What is her reason for doing this in terms of smart financial pl
    8·2 answers
  • Prosocially motivated behavior is driven by the fear of punishment. is performed for social recognition and respect. attempts to
    11·1 answer
  • Southern Tours is considering acquiring Holiday Vacations. Management believes Holiday Vacations can generate cash flows of $218
    10·1 answer
  • Why would an analyst include among other things, airplane parts, legal services and software, in an analysis of international ec
    6·1 answer
  • Mandy wants to mention detailed information about her hobbies, personal qualities, strengths, and professional achievements in a
    8·1 answer
  • At the beginning of the year, Vendors, Inc., had owners' equity of $49,850. During the year, net income was $6,150 and the compa
    14·1 answer
  • A corporate bond with a 6.5 percent coupon has 15 years left to maturity. It has had a credit rating of BBB and a yield to matur
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!