When companies watch both their buyers and their competitors, they are called _______

Port Allen Chemical Company processes raw material D into joint products E and F. Raw material D costs $4 per liter. It costs $1

Sergeu [11.5K]

Answer:

a) Product G should be produced and sold

b) Net financial advantage $80

Explanation:

A company should process further a product if the additional revenue from the split-off point is greater than than the further processing cost.

Also note that all cost incurred up to the split-off point are irrelevant to the decision to process further .

$

Revenue after split-off point

($9× 40 litres) 360

Revenue at the slit of point

($4 × 40) (160)

Additional income from further processing 200

Further processing cost ($3× 40) (120)

Incremental income from further processing 80

Incremental income from further processing = $80

a) The product F should be processed further and sold as product G. Doing so would increase the net income by $80.

b) Net advantage $80

4 0

3 years ago

The primary drawback of the edison talking machine for sound recording was:

Nataliya [291]

Only one recording of a given sound could be made; copies were not possible.
Hope this helps! :)

4 0

3 years ago

If the government owes $10.0 trillion and then borrows $700 billion more this year, this leads toa. a debt of $700 billion and a

77julia77 [94]

Answer:

E: a debt of $10.7 trillion and a deficit of zero.

Explanation:

Deficits are usually financed by debt. Here the government has incurred an extra debt of $700 billion. The previous debt of $10 trillion may have been due to any reason and not necessarily deficit. However, the passage does not state if the extra debt is due to deficit or not. So it is safe to select option E.

Hence, the government has incurred a total debt of $10.7 trillion and a deficit of zero.

7 0

3 years ago

Suppose Stark Ltd. just issued a dividend of $2.57 per share on its common stock. The company paid dividends of $2.20, $2.31, $2

crimeas [40]

Answer:

Growth rate (g) = n-1√(Latest dividend) - 1

Current dividend

= 4-1√($2.49/2.20) -1

= 3√(1.1318) -1

= 1.04 - 1

= 0.04 = 4%

Ke = Do(1 + g) + g

Po

Ke = $2.57(1 + 0.04) + 0.04

65

Ke = 0.04 + 0.04

Ke = 0.08 = 8%

Explanation:

In this case, we need to calculate the growth rate using the above formula. Then, the cost of equity will be calculated. Cost of equity is a function of current dividend paid subject to growth rate divided by current market price.

Explanation:

5 0

3 years ago

Cute Camel Woodcraft Company just reported earnings after tax (also called net income) of $9,750,000 and a current stock price o

Assoli18 [71]

Answer:

Explanation:

a)

earning per share = Net income / outstanding shares

= $9,750,000 / 5,500,000 = $1.77

price earning ratio = Current stock price \ earning per share

= $39.50 \ $1.77 = 22.32

new Earning per share = Net income / outstanding shares

= $9,750,000 * 125% / 8,400,000 = $1.45

the stock price after one year would be

= Price earning ratio * New earning per share = 22.32 * $1.45 = $32.36

b)

Market to book ratio = Market value/ book value

Market value = Share price * number of outstanding shares

= $47.12 * 8,400,000 shares = $395,808,000

book value is $54,364,800

M/B = $395,808,000 / $54,364,800 = 7.28 times

Is it possible for a company to exhibit a negative EPS and thus a negative P/E ratio?

Yes, if company is having losses

7 0

3 years ago

When companies watch both their buyers and their competitors, they are called ________ companies.?