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Alex73 [517]
3 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]3 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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On November 23, Elder Lift Corporation, a wholesaler of hydraulic lifts, acquired land in ex- change for 12,500 shares of $25 pa
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Answer:

Journal Entry to be recorded

DR.    Land                                           $475,000

                 Cr.     Common stock                          $312,500

                 Cr.     Add-in-capital common stock  $162,500

Explanation:

Number of Shares = 12,500 shares

Share Market price = $38

Share Par Value = $25

Total value of property to be recorded= 12,500 x $38 = $475,000

Common stock value at par = 12,500 x $25 = $312,500

Add-in-Capital common stock value = $475,000 - $312,500 = $162,500

Property will be recorded as the total value of exchange which is $475,000. On other other hand the common stock value will be recorded in two parts common stock at par value and add-in-capital common stock over par value.

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3 years ago
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Stolb23 [73]

Answer:

The correct answer is letter "E": goal.

Explanation:

Goals represent the objectives companies set to accomplish over a specific period and represent the reason why the firm takes several methodical steps towards achieving that mission. Goals can be <em>quantified </em>and <em>measured </em>to verify inf they are achievable.

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Answer:

The answer is B. Price Skimming

Explanation:

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Price Skimming is usually set for products that have short life-cycle

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4 years ago
In the out line above which sub topic is incorrectly placed under a topic heading
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i think its computer assembly and repair.

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