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Vanyuwa [196]
3 years ago
6

A company has net income of $865,000; its weighted-average common shares outstanding are 173,000. Its dividend per share is $1.3

0, its market price per share is $105, and its book value per share is $101.5. Its price-earnings ratio equals (Do not round your intermediate calculations): a. 2.20. b. 20.30. c. 21.00. d. 3.50. e. 4.80.
Business
1 answer:
Elenna [48]3 years ago
7 0

Answer:

c. 21.00

Explanation:

The formula to compute the price earning ratio is shown below:

Price-earnings ratio = (Market price per share) ÷ (Earning per share)

where,

Market price per share is $105

And, the earning per share would be

= Net income ÷ weighted-average common shares outstanding

= $865,000 ÷ 173,000 shares

= $5

Now put these values to the above formula  

So, the per share would equal to

= $105 ÷ $5

= 21

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nata0808 [166]

In the capitalization versus expensing case the main ethical issue is whether Gloria Hernandez should capitalize or expense one millions dollars of expenditures.

<h3>What is meant by capitalization?</h3>

This is the term that is used in accounting to talk about the fact that an item can be recorded as an asset. What this means is that the expenditure is going to be made to appear in the balance sheet and it would not have to appear in the income statement.

Hence we have to say that In the capitalization versus expensing case the main ethical issue is whether Gloria Hernandez should capitalize or expense one millions dollars of expenditures.

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1 year ago
Explain why a finance manager need to understand accounting information even if the firm has a trained accountant on its staff.
nekit [7.7K]

Answer:

Following are the solution to the given question:

Explanation:

A financial manager should understand adequate information on accountancy. This is irrespective of whether the business does have a trained counterpart.

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The purpose of accountancy in the choice process is to gather and provide financial data on the institution's past, present, and future activities.

During the economic transaction, the finance department uses these data. This is not possible for money advisors to collect data or to make choices from accounts. And an investor's primary focus is to collect data and display it, whereas budgeting, control, and judgment are the main job of a financial manager. In a sense, financial management starts at the end of accountancy.

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3 years ago
When Bill's Diner moves from the production combination of 35 burgers and 25 hotdogs to the combination of 25 burgers and 65 hot
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Answer:

<h2>In the context of Consumer Theory or Indifference Curve involving two goods,the opportunity of any one good is computed by how much of the other good is foregone or sacrificed to purchase one more unit of that particular good.</h2>

Explanation:

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