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goldfiish [28.3K]
3 years ago
14

Hermann Corporation had net income of $200,000 and paid dividends to commonstockholders of $50,000 in 2012. The weighted average

number of shares outstanding in2012 was 50,000 shares. Hermann Corporation's common stock is selling for $50 pershare on the New York Stock Exchange. Hermann Corporation's price-earnings ratio is
Business
1 answer:
diamong [38]3 years ago
3 0

Answer:

the P/E ratio is 12.5

Explanation:

the price-earning ratio represent how many times the earnings per shares "fits" into the price of the share. It represent how many years are needed to payback the investment of rchase the share.

We first need the earningper share:

\frac{income - preferred \: dividends}{outstading \: shares} = EPS

200,000 net income / 50,000 = 4 dollars EPS

price-earnings ratio:

\frac{Price}{EPS}  = P/E

50/4 = 12.5 years

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a report must be sent promptly to FINRA if a registered employee of a member firm for all of the following EXCEPT: A has violate
Gnom [1K]

Answer:

D

is ticketed for careless driving

Explanation:

FINRA Rule 4530 says one can report

each member of the firm promptly to FINRA, within 30 calendar days,

6 0
3 years ago
How does a company build its strategic management game plan to attract and please customers, compete successfully, conduct opera
klio [65]

Explanation:

It is necessary for companies to develop a strategic business plan, which contains the action plans necessary for an organization to achieve its objectives and goals.

The organization's strategic planning will comprise long-term objectives, including the company's guidelines, its mission, vision and values, the analysis of internal and external environments, and action plans, which will help the company to be well positioned, profitable and competitive in the market.

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3 years ago
The goal of strategy is to find a(n) ________ that is so well suited to the firm's competitive advantages that other organizatio
kolbaska11 [484]

Answer:

The correct answer is letter "C": propitious niche.

Explanation:

Companies develop strategies to set the steps necessary to accomplish an objective. One of those steps involves finding the firm's propitious niche which is no more than its target market. It determines what the company should do based on the best competitive advantage the firm will have in that market that will differentiate the company from competitors and will help the firm to establish in the market.

8 0
3 years ago
Read 2 more answers
Television Haven buys televisions from a manufacturer and then sells them to department stores. Television Haven is most likely
MaRussiya [10]

Answer: Wholesaler

Explanation:

Television Haven buys televisions from a manufacturer and then sells them to department stores. Television Haven is most likely a wholesaler.

A wholesaler involves someone who buys goods from the manufacturer or producer in bulk, that is large quantities and then sell to the retailers after which the retailer then sells to the consumers

Here, Television Haven is a whilesaler while the department store is a retailer.

5 0
3 years ago
An airline is considering a project of replacement and upgrading of machinery that would improve efficiency. The new machinery c
Nikolay [14]

Answer:

$172.25

Explanation:

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cash flow years 1-5 = [($300 - $135 - $70) x (1 - 36%)] + $70 (depreciation expense) = $60.80 + $70 = $130.80

using an excel spreadsheet and the NPV function, we can calculate the project's NPV with an 8% discount rate:

=NPV(8%,130.80,130.80,130.80,130.80,130.80) - $350 = $522.25 - $350 = $172.25

we can also do it manually:

NPV = -$350 + $130.80/1.08 + $130.80/1.08² + $130.80/1.08³ + $130.80/1.08⁴ + $130.80/1.08⁵ = $172.25

6 0
4 years ago
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