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
mrs_skeptik [129]
3 years ago
11

Bon Temps' financial statements show the following information: Average cost of funds 10.0 %, EBIT $ 500,000, Total capital $1,2

50,000, EPS $2.00, Shares outstanding 150,000, Marginal tax rate 30.0%.
(1) Compute the company's economic value added (EVA).
(2) Suppose that normally Bon Temps' P/E ratio is 20. Using the information given, estimate the market price per share for Bon Temps' common stock.
Business
1 answer:
s344n2d4d5 [400]3 years ago
3 0

Answer:

1. $225,000

2. $40

Explanation:

1. The computation of company's economic value added is shown below:-

= Earning before interest and tax × (1 - Tax rate) - (Total Capital × Cost of capital)

= $500,000 × (1 - 30%) - ($1,250,000 × 10%)

= $350,000 - $125,000

= $225,000

2.  The computation of market price per share is shown below:-

= Earning per share × Price per earning ratio

= $2 × 20

= $40

You might be interested in
Why should firms manage thier environment
ahrayia [7]

Answer:

Environmental management can make firms more effective in many ways

Explanation:

6 0
2 years ago
Coronado Industries constructed a building at a cost of $30150000. Weighted-average accumulated expenditures were $12500000, act
Neko [114]

Answer:

$709,100

Explanation:

Cost of the building = $30150000

Average accumulated expenditures = $12500000

Actual interest = $1230000

Avoidable interest =  $604000

Salvage value = $2390000

Useful life = 40 years

Depreciation expense for the first full year:

= ((Cost of the building + Avoidable interest) - Salvage value) / Useful life

= [($30150000 + $604000) - $2390000] / 40

= [$30754000 - $2390000] / 40

= $28364000 / 40

= $709,100

So, the depreciation expense for the first full year using the straight-line method is $709,100.

3 0
3 years ago
What is a person’s taxable income?
dybincka [34]

I'ts not the C, gross income received from salaries, wages, tips, and commissions. I just chose that on my quiz and got it wrong. I did a little more research after that and now I believe it is

B, gross income after subtracting exemptions and deductions.

5 0
4 years ago
Read 2 more answers
Which type of financial statement should you look at if you want to see a company's profits and losses over a specific period of
yKpoI14uk [10]

Answer:

A.Income statement

Explanation:

The income statement of a institution or business that shows the expenses, costs and the incomes during a certain period of time, it is often done quarterly or annually in order to present the tax declaration, it is also known as "profits and loss statement" because it shows exactly if the business had profits or lost money during that period of time.

8 0
3 years ago
ohn joined the military during his senior year in high school with a deferred reporting date. He heard about jobs within the mil
nirvana33 [79]

Answer: a. Boot camp is the military's version of employee orientation.

Explanation:

To become an employee in a company, it is standard practice for the employer to give the employee an orientation so that they may be able to perform better at their jobs because they would know what is expected of them and how to go about achieving this.

This is the same for the military. When they send recruits to boot camps, they are doing their version of employee orientation because the recruit will learn what Uncle Sam expects from them and how they are to accomplish these tasks.

5 0
3 years ago
Other questions:
  • Relationships between businesses and among nations:
    10·1 answer
  • How does investing in successful business ideas earn you money?
    10·2 answers
  • A friend is trying to start a record label but becomes very worried because he feels that a few powerful record companies have c
    9·1 answer
  • Grouping pieces of information together to expand the effective capacity of short-term memory is termed _________.
    8·1 answer
  • You invested ​$21000 in two accounts paying 5 % and 9 % annual​ interest, respectively. If the total interest earned for the yea
    8·1 answer
  • The open-economy macroeconomic model takes
    10·1 answer
  • If the United States imports $10 million worth of goods from the Philippines, but the Philippines buys only $5million worth U.S
    15·1 answer
  • If you put up $52,000 today in exchange for a 6.5 percent, 16-year annuity, what will the annual cash flow be?
    12·1 answer
  • Mary's Landscaping uses a job order cost system. The following debits (credits) appeared in Work-in-Process Inventory for August
    10·1 answer
  • Innovative entrepreneurs and their business firms that destroy existing business models are referred to as ________.A) crowdfund
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!