Answer:
(a) $10 million
(b) $1 per share
(c) $49
(d) 25 %
Explanation:
(a) Estimated net earnings for next year.
Sales next year = $100 million
Net profit margin = 10%
Net profit margin = Net Income ÷ Sales
Net Income = 10% × $100 million
= $10 mil
lion
(b) Next year's dividends per share.
Dividend payout = Dividends paid ÷ Net Income
= 50%
Dividends paid = $10 × 50%
= $5 mil
lion
Per share dividend = Dividend paid ÷ Shares outstanding
= $5 million ÷ 5 million
= $1 per share
(c) The expected price of the stock (assuming the P/E ratio is 24.5 times earnings).
Earnings per share:
= Net income ÷ shares outstanding
= $10 million ÷ 5 million
= $2 per share
P/E Ratio = Price per share ÷ Earnings per share
Price per share = $2 × 24.5
= $49
(d) The expected holding period return (latest stock price: $40 per share).
= (Final price - Initial price + Dividend) ÷Initial Price
= ($49 - $40 + $1) ÷ $40
= 25%
Answer:
Defragmenting the hard drive identifies areas on the hard drive that need to be fixed? <u>The answer is FALSE</u>.
Explanation:
When certain information are being removed from the hard drive, tiny gaps are usually being created which can be filled when we store new data. As the new data is being saved on our computer, they occupy those available spaces. When the gaps are not large enough for the files, they get stored in other available areas. This makes the entire files to be scattered and the process is called fragmentation.
In defragmentation, the system is being asked to put all these scattered information in one area of the file, so that it could be easier for one to access them faster. It does not identify areas on the hard drive that needs to be fixed.
Check Disk (chkdsk.exe), rather helps with scanning through the entire hard drive, to find and fix errors.
Answer:
D
Explanation:
Net working assets is current assets less current liabilities
Current assets include cash, cash equivalents and inventory
Examples of current liabilities include accounts payables, short-term debt, accrued expenses, and dividends payable
When inventory is purchased with cash, inventory increases and cash reduces, thus there is no change in net working capital
Net working capital can be negative or positive.
If current assets is greater than current liabilities, it would be positive, if this is not the case, it would be negative.
Answer:
this is the community his work about the system so he cannot ans this question sorry
Answer:
$3,960
Explanation:
The Borrowed amount is $198,000 on November 1, 2021.
The interest expense at December 31, 2021 is calculated as shown below:
I=PRT
R=12%=0.12
P=$198,000
T=2 Months=(2/12) year
I=198,000*0.12*(2/12)
I=$3960
The correct option will be "B. $3,960."
