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Diano4ka-milaya [45]
2 years ago
15

At year​ end, Tangshan China Company balance sheet showed total assets of​ $60 million, total liabilities​ (including preferred​

stock) of​ $45 million, and​ 1,000,000 shares of common stock outstanding. Next​ year, Tangshan is projecting that it will have net income of​ $1.5 million. If the average​ P/E multiple in​ Tangshan's industry is​ 15, what should be the price of​ Tangshan's stock?
Business
1 answer:
Studentka2010 [4]2 years ago
7 0

Answer:

Earnings per share

= <u>Net income - Preferred dividend </u>

  No of common stocks outstanding

= <u>$1,500,000 - 0</u>

   1,000,000 shares

= $1.50 per share

P/E ratio = <u>Market price per share</u>

                 Earnings per share

15   = <u>Market price per share</u>

              $1.50

Market price per share = 15 x $1.50

                                      = $22.50

Explanation:

In this question, there is need to calculate earnings per share by dividing net income by number of common stocks outstanding. Thereafter, we will apply P/E ratio formula, where P/E ratio and earnings per share are known. We will make market price per share the subject of the formula.

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In the month of November Marigold Corp. wrote checks in the amount of $43300. In December, checks in the amount of $59239 were w
yanalaym [24]

Answer:

$11,977

Explanation:

The difference between the balance of the total checks written and balance of the total checks presented for withdrawal gives the amount outstanding.

As such, amount of outstanding checks at the end of December is the net of the balance of the checks written in November and December and the balance of the checks presented in the same period.

This is

= $43300 + $59239 - $39630 - $50932

= $11,977

4 0
3 years ago
Read 2 more answers
Sanyo Corporation manufactures a popular model of business calculators in a suburb of Seoul, South Korea. The production process
Elden [556K]

Question a)

The sum of the <u>Total assets</u> plus <u>total fixed assets</u> results in <u>total assets</u>.

Question b)

The division of <u>Net sales</u> over <u>total assets</u> results in <u>Asset Turnover</u>

Question c)

The subtraction of the <u>cost of good sold</u> from <u>net sales</u> is equal to the <u>gross margin</u>

Question d)

The subtraction of <u>Operating expenses</u> from <u>gross margin</u> results in the <u>Net Operating profits, before the taxes.</u>

Question e)

The subtraction of <u>Taxes</u> from <u>Net Profit before tax</u> results in <u>Net profit after taxes</u>

Question f)

The division of <u>Net profit after tax </u>over the <u>Net saves</u> gives you the <u>Net profit margin percentage.</u>

Question g)

The division of <u>Net profit Margin percent</u> over the <u>asset turnover </u>results in a <u>return on assets. </u>

5 0
3 years ago
Suppose you and a classmate are playing a game where your classmate proposes a division of​ $1.00. ​ Then, you either accept or
AleksandrR [38]

Answer:

  1. Your optimal strategy is to accept the proposed division.
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Explanation:

An optimarl strategy is one that maximizes a player’s expected payoff. In this case this is a cooperative game.

6 0
3 years ago
What are the primary strategies that can help groups reach consensus?
stiv31 [10]

Answer and explanation:

In the decision-making process, the consensus is the point at which the members of a given group agree with having decided which is the best path they should take to reach an objective. Strategies that can help come to that state faster include encouraging participation since the most team members collaborate in the decision-making, the more involved they will be the project; introducing a voting system in case there are too many differences among the team members to eventually decide what the majority agrees with; and, creating a team developing a solution in case natural consensus cannot be achieved. They will be in charge of deciding what to do based on information obtained from the discussion.

5 0
3 years ago
The weekly payroll of Wolverine Corporation is $3,000. Employees work five days per week, Monday through Friday. December 31, 20
ruslelena [56]

Answer:

The answer is: D) Accounts:

                             Salaries Expense: Debit = 1,200

                             Salaries Payable : Credit = 1,200

Explanation:

Salaries expense is a type of expense account (all expense accounts are temporary accounts). When expenses are recorded, they should be debited.

  • Debit record

        Salaries expense 1,200

Salaries payable is a liability account. When liabilities increase, they should be credited.

  • Credit  record

        Salaries payable 1,200

6 0
3 years ago
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