Answer:
Option (d) 7 times
Explanation:
Data provided in the question:
Net income = $250,000
Dividends paid to common stockholders = $50,000
Common stock outstanding = 50,000
Selling price of the common stocks = $35
Now,
The price-earnings ratio is calculated as:
⇒ ( Stock price ) ÷ ( Earnings per share )
also,
Earnings per share = ( Net income ) ÷ ( common stock outstanding )
= $250,000 ÷ 50,000
= $5
or
Price-earnings ratio = $35 ÷ $5
or
Price-earnings ratio = 7 times
Option (d) 7 times
Answer:
d.guarantee the company will earn a profit
Explanation:
Internal controls are controls put in place by management to mitigate against identified risk. Risk basically refers to what could go wring in a process. Controls are put in place to mitigate against the risk of error or fraud and do not necessarily prevent the company from making a loss.
Companies make profit or loss based on management's decisions such as where to invest, what time to invest, introduction of a new product, management of cost of sales and operating expenses etc
Internal controls basically consist of policies and procedures that ensure that the company's asset are not misused (fraud), no misrepresentation of revenue (fraud), employees and managers comply with laws and regulations, business information is accurate ( no misrepresentation of records due to error) etc.
Hence Internal control does not consist of policies and procedures that guarantee the company will earn a profit.
The right option is d.
Measures the value that a buyer places on a good
Answer:
$6600
Explanation:
Given: Selling price= $250 per unit
Variable cost= $181 per unit.
Fixed cost= $430000.
Expected Profit= $25400.
Let´s assume the number of units sold be "x".
Revenue (R) = 
Cost of product (C)= 
∴ Cost of product (C)= 
Now, finding the number of unit sold.
Forming an equation for profit.
We know, Profit= 
⇒ 
Opening parenthesis.
⇒ 
⇒ 
Adding both side by 430000
⇒ 
Dividing both side by 69
⇒ 
∴ 
Hence, total number of units sold to earn $25400 is 6600 units.
