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Alex73 [517]
2 years ago
12

The Crestar Company reported net income of $112,000 on 20,000 average outstanding common shares. Preferred dividends total $12,0

00. On the most recent trading day, the preferred shares sold at $50 and the common shares sold at $95. What is this company's current price-earnings ratio?
Business
1 answer:
AlexFokin [52]2 years ago
7 0

Answer:

Price earnings ratio = 19 times.

Explanation:

Price earning ratio is calculated as for the common equity, as the earnings on preference share is fixed.

Accordingly, the earnings for equity = Net income - preference dividend = $112,000 - $12,000 = $100,000

Number of shares outstanding = 20,000

Earnings per share = $100,000/20,000 = $5 per share.

Selling price of the share = $95

Thus, price earnings ratio = $95/$5 = 19 times.

This reflects that the 19 times of earnings is the price of share.

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Monte Vista uses the perpetual inventory system. At the beginning of the quarter, Monte Vista has $44,000 in inventory. During t
Akimi4 [234]

Answer:

The answer is $18,810

Explanation:

Cost of goods sold equal:

Beginning or opening inventory plus purchases minus ending or closing inventory.

Monte Vista returned some inventories and also took advantage of discount. So this will reduce the cost of total purchases for the quarter.

Total purchase = new purchases minus purchase returns minus any discount enjoyed.

So total purchase is now:

$10,000 - $1,350 - $340

=$8,310

Therefore cost of goods sold is:

$44,000 + $8,310 - $33,500

=$18,810

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When making contingency estimates, the contractor should Select one: a. estimate the amount to mitigate high impact and probable
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Answer:

a. estimate the amount to mitigate high impact and probable issues.

Explanation:

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As a result of uncertainties that are peculiar to everything in life, most especially projects undertaken, it is very important and necessary that the contractor should set aside an amount of money to mitigate or lessen any high impact such as dwindling prices, miscellaneous, faults, repairs and other probable issues that may arise in the process of execution.

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Which of the following is true? When companies employ push-down accounting:A) the subsidiary revalues assets and liabilities to
kondor19780726 [428]

Answer: The correct answer is A) The subsidiary revalues assets and liabilities to their fair values as of the acquisition date.

Explanation: Push down accounting is used when a company buys another company. This type of accounting revalues the assets and liabilities of the acquired company at a fair value on the date of acquisition.

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Critically explain Robbins definition of economics?​
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In his landmark essay on the nature of economics, Lionel Robbins defined economics as. “the science which studies human behaviour as a relationship between ends and scarce means which have alternative uses”

Explanation:

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