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grigory [225]
3 years ago
6

Dean Brothers Inc. recently reported net income of $1,500,000. The company has 300,000 shares of common stock. The stock current

ly trades at $60 a share. The company continues to expand and anticipates that one year from now its net income will be $2,500,000. Over the next year the company also anticipates issuing an additional 100,000 shares of stock, so that one year from now the company will have 400,000 shares of common stock. Assuming the company's price/earnings ratio remains at its current level, what will be the company's stock price one year from now?
Business
1 answer:
vladimir1956 [14]3 years ago
7 0

Answer:

$75

Explanation:

The formula to compute the price -earning ratio is shown below:

Price earning ratio = Market price ÷ Earning per share

where,

Market price is $60

And the earning per share is

= ($1,500,000 ÷ 300,000 shares)

So, price earning ratio is 12

Now the company stock price is

$12 = Stock price ÷ (2,500,000 ÷ 400,000)

So, Stock price is $75

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Alenkasestr [34]

Attracting and retaining employees with the skills, abilities, and experience  is a key component of a<u> human resource</u> management system.

<h3>What is human resource management system?</h3>

Human resource management system  has to do with carrying out specific function such as effectively managing everything that has to do with human resource.

Human resource management system is important for companies as it enables them to choose employees  that has the best skills and experience to move the company forward so as to enable the company  achieve their goals.

Therefore attracting and retaining employees  is a key component of a<u> human resource</u> management system.

Learn more about Human resource management system here:brainly.com/question/21976973

6 0
2 years ago
You have $2,000 today in your savings account. How long must you wait for your savings to be worth $4,500 if you are earning 1.2
Alenkasestr [34]

Answer:

n= 65.27 years

Explanation:

Giving the following information:

Present value (PV)= $2,000

Future value (FV)= $4,500

Interes rate (i)= 1.25% annual compounding

<u>To calculate the number of years required to reach the objective, we need to use the following formula:</u>

n= ln(FV/PV) / ln(1+i)

n= ln(4,500 / 2,000) / ln(1.0125)

n= 65.27 years

3 0
3 years ago
A company reports the following information for the year: Net credit sales $ 120,000 Average accounts receivable 20,000 Cash col
Alborosie

Answer:

receivable turnover ration = 6

Explanation:

credit sales = 120000

Credit sales =As we know that: Receivables turnover ration = Net credit sales /Average account receivable.

                                 =    120000/ 20000

                                 = 6.

it indicates that company convert its receivable to cash 6 times that year.

7 0
3 years ago
Chad, who owns the only coffee shop in Rivercity, learns that Jose is about to open a competing coffee shop in the same small to
Leya [2.2K]

Answer:

Rivercity Coffee Shop

Chad cannot sue Jose.  The $10,000 is paid to Jose is a bribe.  Since a bribe is not legal, it cannot form the basis for an enforceable contract.

Moreover, the offer by Chad is an antitrust and anti-competition consideration that is legally frowned upon. illegal contract

Explanation:

For a contract to be enforceable, it cannot be illegal.  A bribe is illegal.  The basis for the contract is illegal.  Therefore, Chad cannot sue Jose.  Since Jose decided to breach the contract, neither Chad nor Jose is entitled to any compensation.  Jose cannot be held liable for non-performance.

6 0
3 years ago
Three individuals form Skylark Corporation with the following contributions: Cliff, cash of $50,000 for 50 shares; Brad, land wo
erastova [34]

Answer:

C. Ron’s basis in his stock is $27,000

Explanation:

Income recognized on services rendered $21,000

Add basis of $6,000

Ron stock basis $27,000

The property contributed by Ron is not considered insignificant compared to the value of the services he has rendered, which is why the entire contribution is counted as being for property.

Hence, the control requirement is satisfied and a valid § 351 transaction results. Ron’s stock basis is $27,000 [$6,000 (basis of cattle transferred) + $21,000 (income recognized on services rendered)]

4 0
3 years ago
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