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elena55 [62]
3 years ago
5

Dove, Inc., had additions to retained earnings for the year just ended of $643,000. The firm paid out $40,000 in cash dividends,

and it has ending total equity of $7.38 million. a. If the company currently has 750,000 shares of common stock outstanding, what are earnings per share? Dividends per share? What is book value per share? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) b. If the stock currently sells for $30.80 per share, what is the market-to-book ratio? The price-earnings ratio? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) c. If total sales were $10.68 million, what is the price-sales ratio? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Business
1 answer:
Zinaida [17]3 years ago
3 0

Answer:

Earnings for the year = Addition to retained earnings + Dividend paid = $643,000 + $40,000 = $683,000

a. Earnings per share = Earnings / No of shares = $683,000 / 750,000 = 0.91

Dividend per share = Dividend / No of shares = $40,000 / 750,000 = 0.05

Book value per share = Ending equity / No of shares = $7,380,000 / 750,000 = $9.84

b. Market price per share is 30.8. Market to book ratio = $30.80 / $9,84 = $3.13

c. Price earning ratio = $30.80/$0.91 = $33.82

Total sales = $10,680,000, Sales per share = 14.24

Price sales ratio = Market price / Sales = $30.80 / $14.24 = $2.16

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3 years ago
On its year 1 financial statements, Seatax Corporation, an accrual-method taxpayer, reported federal income tax expense of $570,
Nookie1986 [14]

Answer: $570000

Explanation:

The book-tax difference, that's associated with its federal income tax expense that Seatax should have reported when computing its year 1 taxable income will be $570000.

It should be noted that the $570000 for the book tax difference is permanent as it isn't reversible for.the next fiscal period.

7 0
2 years ago
Zach Company owns 40% of the voting stock of Tomas Corporation and uses the equity method in recording this investment. Tomas Co
Anna71 [15]

Credit to the investment account for $8,000. The consolidated financial statements would therefore be necessary once one firm acquired 50% or more of the voting capital of another company. A parent-subsidiary relationship is created as a result of consolidation, with the parent business assuming ownership of the stock.

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When you consider investing, a cash account is likely the type of Investment account that comes to mind. You fund a cash brokerage account by making a deposit, and you then utilise the money to purchase securities.

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7 0
1 year ago
The owner of a greenhouse and nursery is considering whether to spend $6,000 to acquire the licensing rights to grow a new varie
navik [9.2K]

Answer:

4,000.

Explanation:

The Cost, volume, and profit (CVP) analysis helps manager to evaluate capital projects. It is conducted by companies to determine how much of sales must be made to achieve break-even and target profits. This analysis works on several assumptions, these are:

- Selling price per unit is constant.

- Variable cost per unit is also constant.

- Fixed cost remains constant.

- The stocks produced will must be sold.

To conduct CVP analysis, a contribution income statement is prepared. This is a one of the internal reports prepared by management and the equation to it is as follows:

  (SP * Quantity) - (VC * Quantity) = CM - Fixed Cost = Operating Income

where

SP = Selling price

VC = Variable cost

CM = Contribution margin

The above given equation can be used for break-even analysis. To do so, simply solve it for "Quantity". Likewise, it can also be used to determine how much units must be sold to achieve a desired/target profit. The focus here is to determine the quantity that must be sold to achieve a target profit of $6,000. Simply put the given information in the equation and find the quantity;

⇒       (6 * Quantity) - (3 * Quantity) - 6,000 = 6,000

OR     Quantity (6 - 3) = 6,000 + 6,000

OR     Quantity = 12,000 / 3

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So, 4,000 units must be sold to achieve a target profit of $6,000.

6 0
2 years ago
As a junior congress person you have been asked to help promote a bill to allow casino gambling in your state. There is much opp
MariettaO [177]

Explanation:

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Casino deserves to play in the State:

More collection of revenue in the form of tax for the administration.

Tourist inflows on weekends, which lead to additional state revenues.

Boost in other businesses, such as casinos, pubs, car parks, gas sales, beer sales and expanded road tax collection.

Improved prospects for jobs.

The increased income selection will create a tourist attraction for the state residents, such as the ocean or a lake.

The demerits I can list and probably face during the argument are:

Concerns of law and order: Night operations are improved and provisions for the Casino Licensing are complied with.

It can increase drug trafficking. Education shall be taken by the police and other law enforcement agencies.

Drug addicts can harm the state: police take care. drug addicts.

Nightlife can be achieved for neighboring residents. Credit shall be taken on night patrols.

Can increase the number of road accidents caused by drunk driving.

Case that Casino Gambling is not new to America. Any real and concrete ties to ill effects such as opined use, drug trafficking and other ill effects are only attributed to a gaming casino.

If all the negative effects expected or perceived by the law enforcement agency are tracked, all the negative effects may be entirely eradicated and savings can be gained from increased revenues by the state.

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