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erik [133]
3 years ago
13

Delta cabinets has 13,000 shares of stock outstanding at a market price of $19 a share. the earnings per share are $1.34. the fi

rm has current assets of $49,000, net fixed assets of $220,000, and total liabilities of $187,000. today, the firm is paying a cash dividend of $.40 a share. ignore taxes. after the dividend, the firm's:
Business
1 answer:
Goryan [66]3 years ago
8 0

After the dividend, the firm's:

a. book value per share will be $6.31.

b. price-earnings ratio will be 13.88.

c. shareholder value per share will be $18.60.

d. stock price will be $19.00.

e. earnings per share will be $.94.

The answer is : b

We calculate the ex-dividend price of a share on the day dividend is paid as follows:

Ex-dividend Price = Share price before dividend - dividend paid per share

Ex-dividend price = $18.6 ($19 - $0.40)

We can use this ex-dividend price to calculate the company's P/E ratio after dividend.

P/E = $18.6/$1.34 = 13.88059

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Blue Inc. has decided to raise additional capital by issuing $185,000 face value of bonds with a coupon rate of 10%. In discussi
Olin [163]

Answer:

a)

Cash debit : $150000

Debit discount on BP : $65000

Credit BP : $185000

Credit Paid-in Capital- Stock Warrants : $30000

b)

Cash debit : $150000

Debit discount on BP : $35000

Credit BP : $185000

Explanation:

Given that:

Issuance price = $150000, value of bonds without warrants = $126400, value of warrants = $31600,

Face value = $185000

a)

value assigned to bonds= [value of bonds without warrants/(value of bonds without warrants + value of warrants)] * issue price = [126400/(126400 + 31600)] * 1500000 = 126400 / 158000 * 150000 = $120000

value assigned to warrants = [value of warrants/(value of bonds without warrants+value of warrants)] * issue price = 31600 / (126400 + 31600) * 150000 = 31600 / 158000 * 150000 = $30000

Cash debit = Issuance price = $150000

Debit discount on BP = Face value - value assigned to bonds = $185000 - $120000 = $65000

Credit BP = face value = $185000

Credit Paid-in Capital- Stock Warrants = value assigned to warrants = $30000

b)

Cash debit = Issuance price = $150000

Debit discount on BP = Face value - issuance price = $185000 - $150000 = $35000

Credit BP = face value = $185000

8 0
3 years ago
Suppose you deposit ​$1400 cash into your checking account. By how much will checking deposits in the banking system increase as
grin007 [14]

The rounded nearest dollar is \$12727.27

<u>Solution:</u>

Deposit multiplier is a feature that explains how much money banks create when they loan money to borrowers.  

The sum for the banks to lend is the amount of money kept by the banks above the appropriate balance.

It is the key element of a fractional banking reserve system.

Banks in the United States must meet Federal Reserve minimum requirements, but they can set higher deposits multiplier.

Change in deposit = \$1400

RRR = 0.110

Change in the Money supply = (Change in the Monetary base) \times (Money multiplier)

Money multiplier= 1 \div \text{ reserve ratio }=\frac{1}{0.110}=9.091

Change in money supply= 1400\times9.091= \$12727.273 that is approximately 12727.27 dollars.

5 0
3 years ago
Contracts are a form of private law because the terms contained within a contract bind the relevant parties, not the public as a
sasho [114]

Answer:

The correct answer is the option A: True.

Explanation:

To begin with, the contracts inside the law are regulated by the Anglo-America common law that defines a contract as the agreement between two or more parties in which they establish the basis and principles of the agreement and the clauses that could cause to end the contract. Moreover, a contract is also part of the civil law and therefore that it does not implicate the public as a whole in any way due to the fact that in order to be a correct contract the parties must accept the bond between only them and nobody else.  

5 0
4 years ago
Mention any 4 criteria that a human resource manager should consider about job applicants.
enyata [817]

The correct answer to this open question is the following.

Although there are no options attached, we can comment on the following.

The criteria that a human resource manager should consider about job applicants are the following.

1.- Technical expertise in their fields.

Candidates must show they have the experience for the position they are applying for.

2.- Accountability.

Managers should prove that candidates are responsible people and own the consequences of their decisions and actions.

3.- Commitment.

Managers have to realize that candidates are willing and able to show appreciation and commitment to the company. Their work must be a priority and should be dedicated to it.

4.- Communication.

Employees should show their communications abilities and capacity to accept criticism.

6 0
3 years ago
Which of these companies is demonstrating a first-mover advantage? The level of satisfaction Simon experienced when dining at th
Rainbow [258]

Answer:

Tide-All Inc. has more than 50 percent market share in the telecom industry, because no other company has invested in thisindustry before Tide-All Inc.

Explanation:

In marketing, first-mover advantage can be regarded as competitive advantage which is gained by initial significant occupant of particular segment of the market. first-mover advantage can also be regarded as ability of a firm to be better off compare with it's competitors due to the fact that it is the first to market new product category. For instance, Tide-All Inc. has more than 50 percent market share in the telecom industry, because no other company has invested in thisindustry before Tide-All Inc.

8 0
3 years ago
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