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prisoha [69]
3 years ago
7

Velocity Company estimates the following for the next year, when common stock is expected to trade at a price-earnings ratio of

7. Earnings before interest and taxes $45 million Interest expense $5 million Effective income tax rate 30% Preferred stock dividends $10 million Common shares outstanding 2 million Common stock payout ratio 25% What is Velocity's approximate expected common stock market price per share next year?
Business
1 answer:
Mariana [72]3 years ago
5 0

Answer:

$63

Explanation:

The computation of the expected common stock market price per share for the next year is shown below:

Price earning ratio = Share price ÷ earning per share

where

Price earning ratio is 7

Earning per share is

= (Net income - preference dividend) ÷ number of common shares outstanding

= {($45 million - $5 million) × (1 - 0.30) - $10 million)} ÷ 2 million shares

= $9

Now placing these values to the above formula

So, the expected common stock market price is

= 7 × $9

= $63

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In late December you​ decide, for tax​ purposes, to sell a losing position that you hold in​ Twitter, which is listed on t
sukhopar [10]

Answer:

a. The Bid/Ask spread is $0.03.

b. The statement is “False”.

c. The Bid/Ask spread at the time trade was executed is $0.02.

d. The Total Round-Trip Transaction Costs is $107.90 and the Bid/Ask spread is $0.09. It is important to have a lower commission charge. So the correct statement is “Statement C”.

Explanation:

Please check the file attached below to see the solution to given question

7 0
3 years ago
Suppose that a price-discriminating firm divides its market into two segments. If the firm sells its product for a price of $22
Mashcka [7]

Answer:

The correct answer is: less than $22.

Explanation:

Price discrimination is a situation where a firm charges different prices for the same product. Different price is charged generally from consumers with different price elasticities.  

A firm charges a higher prices from the consumer with lower price elasticity because with a higher price there demand will decrease less than proportionate.

Lower price is charged from consumers having a higher price elasticity of demand because these consumers will decrease their demand more than proportionate at a higher price.  

So if a firm charges $22 in the market segment with less elastic demand, the price in the more elastic market segment will be lower than $22.

5 0
3 years ago
Shaniqua's restaurant utilizes a product cost percentage pricing system. What should be the selling price for a steak dinner she
natima [27]

Answer:

option (A) $28.00

Explanation:

Data provided in the question:

Total cost of Shaniqua's plate = $7.00

Desired product cost = 25%

Now,

Let the selling price for a steak dinner be 'x'

therefore,

[(Total cost of plate) ÷ (Selling price)] × 100% = 25%

or

[ $7 ÷ x] = 0.25

or

or

x = $7 ÷ 0.25

or

x = $28

Hence,

correct answer is option (A) $28.00

4 0
3 years ago
​Haley is an accountant for a large hospital network. She knows that she could easily "skim" money from the organization to keep
serg [7]

Answer:

C. front page test

Explanation:

Front page test refers to the analytical study, which provides information to each public official about how people note his or her actions and respond accordingly.

People in general usually observe actions of individuals and then justify or some times reciprocate so many questions to them against there actions.

This clearly shows that Haley is referring to front page test as she is also a kind of public official, as for each action people respond accordingly, and might create opinions and judgement.

Thus, correct option is C.

front page test.

8 0
3 years ago
The principle of monetary neutrality implies that an increase in the money supply will
8090 [49]

Answer:

The correct answer is letter "B": increase the price level, but not real GDP.

Explanation:

The neutrality of money principle states that fluctuations in the money supply affect the prices of <em>goods, services, </em>and <em>wages</em> but not the growth in an economy or its real Gross Domestic Product (GDP). Austrian economist Friedrich A. Hayek (1899-1992) coined the term "<em>neutrality of money</em>" referring to a characteristic of money playing a neutral role in the growth of an economy.

Nowadays, specialists in the field believe the neutrality of money is a concept that applies in the long-run analysis of the productivity od a country.

8 0
3 years ago
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