1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
S_A_V [24]
3 years ago
9

Enscoe Enterprises, Inc. (EEI) has 220,000 shares authorized, 180,000 shares issued, and 20,000 shares of treasury stock. At thi

s point, EEI has $880,000 of assets. $240,000 liabilities, $400,000 of common stock, and $240,000 of retained earnings. Further, assume that the market value of EEI's common stock is $6 per share.Required:a. Determine the number of shares of stock that is outstanding. b. Determine the book value per share. e. Provide a rational explanation for the difference between the book value per share and the market value per share of Mrs common stock.
Business
1 answer:
son4ous [18]3 years ago
5 0

Answer:

Enscoe Enterprises, Inc. (EEI):

a) Number of shares of stock outstanding is 160,000 shares (180,000 minus 20,000).

b) The book value per share = (value of common stock plus retained earnings) divided by outstanding shares

= $(400,000+ 240,000)/160,000 =  $640,000/160,000 = $4 per share

c) The book value per share represents how the equity shares are valued in the company's accounting records.  This may not be similar to the market value per share.  The market value per share is determined by market sentiments, which cannot be historically accounted for as the book value is.

The book value per share can be compared to the market value per share to determine if a stock is overvalued or undervalued.

At liquidation, the book value per share represents what each shareholder would get if all the assets are sold and liabilities liquidated.  But, the market value per share is what the investor gets if she sells the stock in the market without waiting for the company to be liquidated.

Explanation:

a) Treasury Stock is a contra account to the Common Stock.  When stock is repurchased it reduces the issued shares by the number.  It is only the outstanding stock that has equity interest in the entity.

b) The book value per value is the net worth of the company divided by the number of outstanding shares.  It shows the net assets value per share.  The net assets are the total assets minus the total liabilities.  It is the same thing as Equity or the interests of equity stockholders in the company.

You might be interested in
Iona wrote her will. The following year, she wrote another will that expressly revoked the earlier will.Later, while cleaning ho
snow_lady [41]

Answer and Explanation:

In the given case, the second will would be destroyed non-intentionally by the testatrix that represent the person who writes the will. Also the second will would have be intended to revoke the first will

In addition to this, Testatrix intends the second will to be value also at the same time she dont want the first will to be probated

So the second will would be upheld because of testamentary motive.

4 0
2 years ago
Pat's Custom Tuxedo Shop maintains its records on the cash basis. During this past year Pat's collected $43,300 in tailoring fee
Luba_88 [7]

Answer:

net income = $31,500

Explanation:

given data

collect tailoring fees = $43,300

paid expenses = $12,300

Depreciation expense=  $2,500

Accounts receivable =  $1,050

supplies increased = $4,300

liabilities increased = $2,350

to find out

accrual basis net income

solution

we get here net income by given expression that is

net income = tailoring fees - expenses paid + account receivable + supplies increased - liabilities increased - Depreciation expense .......1

put here value

net income =  $43,300 - $12,300 + $1,050 + $4,300 - $2,350 - $2,500

net income = $31,500

8 0
3 years ago
What are the four most important ways a firm becomes a​ monopoly? The four main reasons a firm becomes a monopoly​ are:
gladu [14]

Answer: A. the government blocks​ entry, control of a key​ resource, network​ externalities, and economies of scale.

Explanation:

3 0
3 years ago
On May 1, 2021, Cedar Corp. paid $432,000 for rent on warehouse space one year in advance. On November 1, 2021, Cedar Corp. ente
lorasvet [3.4K]

Answer: $324,000

Explanation:

Cedar Corp. paid $432,000 for a year in advance. According to the Accrual principle in Accounting, expenses are to be recorded only when incurred.

The rent will therefore have to be apportioned to the months that it has paid for in the current period.

Rent for year = $432,000

Rent for month = 432,000/12 = $36,000

April - December = 9 months

Rent for the year = 9 * 36,000

= $324,000

Note; <em>Question is about Rent expense which is how much Cedar Corp has paid not about how much they have received. </em>

4 0
3 years ago
What do you think would make women's contributions to entrepreneurship more visible and less surprising to people?
ohaa [14]

Answer: They must continue with their work, which goes beyond being housewives.

Explanation: Today women have achieved a lot to be seen as beings who have the ability to undertake large-scale projects. Women should continue working, positioning themselves in direct positions, undertaking, and above all, supporting each other. Women must continue to demonstrate that they too are capable of occupying positions that have been seen only for men. Today we have women presidents of nations, CEOs and giving more contributions to society.

3 0
2 years ago
Read 2 more answers
Other questions:
  • On April 1, 2016, the KB Toy Company purchased equipment to be used in its manufacturing process. The equipment cost $57,200, ha
    7·2 answers
  • Basic FLows, Equivalent Units
    11·1 answer
  • The insured owns an older home with lath and plaster walls. Following a kitchen fire, the insurance company pays to have the wal
    6·2 answers
  • The inventory on hand at the end of 2019 for Reddall Company is valued at a cost of $94,000. The following items were not includ
    6·1 answer
  • Why might these sources of individual values not prove very helpful when making complex business decisions
    6·1 answer
  • Consider a process consisting of three resources. Assume there exists unlimited demand for the product, and that all activities
    12·1 answer
  • A company's perpetual preferred stock currently trades at $87.50 per share, and it pays an $8.00 annual dividend. If the company
    14·1 answer
  • A yield can be paid in the form of?
    5·1 answer
  • Which of the following would be considered a subtopic for a mind map?
    12·2 answers
  • There are currently 69,000,000 U.S. Twitter users. Roughly 46% of Twitter are on the platform daily. How many Twitter users are
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!