The following income statement was produced when volume of sales was at 400 units. Sales Revenue $ 1,600 Variable Cost 700 Contr
1 answer:
You might be interested in
Answer and Explanation :
Few information is missing in the question kindly find the attachment
As per the data given in the question,
The formula and the computation is shown below
1) Book value per share = Equity applicable to share ÷ share outstanding
Apple Google
Equity common share a $134,047 $152,502
Common share outstanding b 5,126.201 694.783
Book value per common share a ÷ b $26.15 $219.50
2)Basic EPS = Net income ÷ weighted Avg common share outstanding
Apple Google
Net income a $48,351 $12,662
weighted Avg common share outstanding b 5217.242 693.049
Basic EPS a ÷ b $9.27 $18.27
3)Dividend yield = Cash dividend per common share ÷ Market price per share
Apple Google
Cash dividend per common share a 2.4 0
Market price per share b $154.12 $1046.4
Dividend yield a ÷ b 1.56% 0.00%
4) Price earning ratio = Market price per share ÷ Basic EPS
Apple Google
Market price per share a $154.12 $1046.4
Basic EPS b 9.26754 18.26999
Price earning ratio a ÷ b 16.63 57.27
5) A higher PE ration indicates that investors want to pay a higher share price because of growth expectation in near by future
Therefore Google has higher PE ratio
Hence, investors have greater expectation of performance of Google in future.
If the government raises the excise tax of the product then supply curve tends to shift leftwards. Therefore, The above statement is false.
<h3>What is Supply Curve?</h3>The supply curve refers to the graphical representation of the supply and the prices of the commodity. It tells how the supply of the commodity affects the prices of the product.
The complete question is attached below.
According to the above situation, when government increases the taxes of the gallon of gasoline then the supply curve will shift leftwards as the supply decreases.
It will lead to the increment in the level of the prices as the demand of the product will fall. Therefore, the above statement is false.
Learn more about supply curve here:
#SPJ1
