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Rzqust [24]
3 years ago
6

Quaker State Wings has 320,000 shares outstanding and net income of $980,000. The company stock is currently selling for $62.97

per share. If the company repurchases $634,000 of its stock, what is the earnings per share after the repurchase
Business
1 answer:
ELEN [110]3 years ago
5 0

Answer:

The new EPS is $ 3.16  

Explanation:

In order to compute the earnings per share after the share repurchase the shares repurchased must deducted from the weighted average number of share of 320,000 before repurchase so as  to arrive at the number of shares eligible for the earnings after such repurchase.

The number of shares repurchased=$634,000/$62.97

                                                           = 10,068.29  

The average weighted number of shares after repurchase is  309,931.71  (320,000-10,068.29)

EPS after repurchase=$980,000/309,931.71

                                   =$3.16 per share

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ZZZ Corporation is issuing Common Stocks that are expected to pay $14 dividend per year and this company is expected to grow at
elena-14-01-66 [18.8K]

Answer:

The pure price per share of common stock issued by ZZZ is $175

Explanation:

According to the given data we have the following:

Expected dividend next year=D1=$14

Growth rate=g=1%

Expected rate of return=r=9%

To calculate the pure price per share of common stock issued by ZZZ Corporation Pure price of share will be equal to PV of all future dividends.

Therefore, Pure price per share=D1/(r-g)

Pure price per share= $14/(9%-1%)=$175

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4 years ago
Suppose you are the manager of a local water company, and you are instructed to get consumers to reduce their water consumption
Veronika [31]

The price of the water needs to be raised by 40% when the consumption of water reduces by 10% and the price elasticity of demand results to 25%.

<h3>What is meant by the price of elasticity of demand?</h3>

The price elasticity of demand is determined as the proportionate variation in quantity with respect to variation in the price of a good.

Given values:

Change in water consumption (fall): 10%

Price elasticity of demand: 25%

Computation of percentage change in the price of water:

\rm\ Change \rm\ in \rm\ price \rm\ of \rm\ water=\frac{\rm\ Change \rm\ in \rm\ water \rm\ consumption}{\rm\ Price \rm\ elasticity \rm\ of \rm\ demand} \\\rm\ Change \rm\ in \rm\ price \rm\ of \rm\ water=\frac{10\%}{25\%} \\\rm\ Change \rm\ in \rm\ price \rm\ of \rm\ water=40\%

Therefore, there is an increase in water price by 40%.

Learn more about the price elasticity of demand here:

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2 years ago
Is paper a natural resource or capital good?
alex41 [277]

Answer:

capital goods

Explanation:

becos it is raw material that is use to making papers

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Suppose that Markus Braun has a set of steps that Wirecard takes each time they acquire a new company. This is known as a .
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The name which is given to the set of steps which Markus Braun to make sure that Wirecard acquires a company is:

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With this in mind, we can see that because Markus Braun is taking careful steps in order to acquire a new company, then this is known as strategic goal.

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<h3 /><h3>What are the variances and standard deviations of the stock?</h3>

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You can then take the square roots of these variances to find the standard deviations as 7.5 and 5.9 respectively.

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