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kvasek [131]
3 years ago
12

Richards Corporation had net income of $250,000 and paid dividends to common stockholders of $50,000. It had 50,000 shares of co

mmon stock outstanding during the entire year. Richards Corporation's common stock is selling for $35 per share. The price-earnings ratio is a.14 times b.2 times c.5 times d.7 times
Business
1 answer:
Scilla [17]3 years ago
4 0

Answer:

Option (d) 7 times

Explanation:

Data provided in the question:

Net income = $250,000

Dividends paid to common stockholders = $50,000

Common stock outstanding = 50,000

Selling price of the common stocks = $35

Now,

The price-earnings ratio is calculated as:

⇒ ( Stock price ) ÷ ( Earnings per share )

also,

Earnings per share = ( Net income ) ÷ ( common stock outstanding )

= $250,000 ÷ 50,000

= $5

or

Price-earnings ratio = $35 ÷ $5

or

Price-earnings ratio = 7 times

Option (d) 7 times

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Alex, brad, and carl are partners. the profit and rule sharing rule between them is 4:3:3 in the alphabetical order. the partner
goblinko [34]

If i understand your question properly, you want to determine how much each partner wiil have based on the sharing ratio.

Answer:

Alex- $40,000

Brad- $30,000

Carl- $30,000

Explanation:

For a net loss of $100,000 shared between partners in the ratio 4:3:3, the value of each partner's ratio can be calculated as seen below.

Step 1: Add the ratios

i.e; 4 + 3 + 3 = 10

Step 2: Calculate the value of each ratio in $100,000 using te formula

(ratio value ÷ total ratio) × $100,000

For Alex, we have

(4 ÷ 10) × $100,000

= 0.4 × $100,000

= $40,000

For Brad, we have

(3 ÷ 10) × $100,000

= 0.3 × $100,000

= $30,000

For Carl, we have

(3 ÷ 10) × $100,000

= 0.3 × $100,000

= $30,000

N.B: To confirm if the value of each ratio is correct, you can add up the values to see if it makes $100,000. If it doesn't, then the calculatio is wrong.

Adding the value of the ratios, we have $40,000 + $30,000 + $30,000 = $100,000.

i hope this helps

6 0
3 years ago
You are considering acquiring a common stock that you would like to hold for one year. You expect to receive both $1.25 in divid
Vlad1618 [11]

Answer:

The maximum that should be paid for the stock today is $30.23.

Explanation:

The total return on a stock is made up of dividend received on the stock plus the capital gain received from selling the stock. The holding period is one year that means a 10% return on the amount invested in required for one year. We need to calculate the present value of the total of selling price plus the dividend to calculate the price of the stock today. As 10% return is required, the discount rate is also 10%.

PV = (1.25 + 32) / 1.1

PV = 30.227 rounded off to 30.23

5 0
3 years ago
A company's decision to move its operations out of the country will affect its employees, owners, suppliers, distributors, and e
kykrilka [37]

Answer:

The above statement is true .

Explanation:

It is true , when a company take decision to move its operations out of the country it will affect its employees , owners , suppliers , distributors , even its customers .

It is because, when company move out , the employees working in it loss their jobs . They become jobless. The suppliers loss their customer. The distributor also loss their customer. The customer may like the product of the company and if the company moves out then they do not get their product which they like. The owner may also suffer loss,as its possible that the product do not gain popularity anywhere else . The company may loss its share. It also effect the economy , as a good earning company always serves to a country .

6 0
3 years ago
When should you include your GPA on your résumé?
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4 0
3 years ago
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1.which of the following groups would you not send a persuasive business letter to?
stepladder [879]
<h3>1. Answer:</h3><h2>D. Vendors</h2><h3>Explanation:</h3>

Persuasive business letters are letters written in great detail which describes in length the strategies, practices, and tools required in order to reach a certain goal. These letters are considered official paperwork that represents your personality. Which is why they are sent out to official business partners as well as potential clients/users so as to detail your plan to them. Vendors do not need to know the inner workings and practices which is why they are excluded from the list.



<h3>2. Answer:</h3><h2> C. Convincing readers that the action you propose in easy.</h2><h3>Explanation:</h3>

The AIDA format is a widely used marketing practice that stands for Attention, Interest, Desire, and Action. Of these 4 phases, the action phase entails all the information that the reader needs in order to properly understand the actions needed in order to either make a purchase or at the very least to fully make the intention of making a purchase. Which is why the language used needs to be convincing so as to make the reader as comfortable as possible.


<h3>3. Answer:</h3><h2>A. builds desire by emphasizing how inexpensive the solution is</h2><h3>Explanation:</h3>

The AIDA format is a widely used marketing practice that stands for Attention, Interest, Desire, and Action. Through this letter, the objective is to convince the reader to feel the need, or desire, to make the purchase. Which is why great emphasis is put on the solution itself and how easy it is to implement. This can be done via showing how inexpensive it is, like in this case, or how easily implementable it is through other means. But regardless of the reason, it must emphasize and entice the reader into realizing how much they want the product.

<h3>4. Answer: </h3><h2>A. please return the enclosed coupon by June 15 for your free oil and filter change. </h2><h3>Explanation: </h3>

It is widely believed that the best way to make a concluding statement is to give the reader an incentive to reply, without setting very strict deadlines or conditions. As in the case above, the correct answer choice provides the reader with an incentive to answer by the 15th of June. Unlike the other options which either do not make the incentive clear to the reader or provide no incentive at all, the correct choice is tailored towards that specific reader and makes the message very clear.


<h3>5. Answer: </h3><h2>C. logical, emotional  </h2><h3>Explanation: </h3>

The objective of a persuasive message is to entice and convince the reader. Which is why it is very important to make the reader fully understand the product, realize its need and evaluate its affordability and/or feasibility. The best way to achieve this result is to form a logical argument so that the client fully understands both the need of the product and its uses, as well as, provide an emotional backing to that logical argument stating how much better they'd be through its use. Thereby fully captivating the reader.

<h3>6. Answer: </h3><h2>C. quickly getting to the point of the message </h2><h3>Explanation: </h3>

In writing a persuasive message, the structure of the message is very important. Rather than blurting out as much information in a small amount of time, or conversely, giving very little information, the best option is to provide an appropriate amount with proper structure. Which is why things like using positive language, being mindful of one's culture and heritage, and building credibility are important.


<h3>7. Answer: </h3><h2>B. emphasizing how horrible your company's customer service department is </h2><h3>Explanation: </h3>

While writing a persuasive message it is imperative to focus on what you and your company is best at and to play at your strengths. Mentioning the weaknesses and shortcomings of your company will almost always lead to a detrimental effect on the reader. Which is why it is a good practice to provide solutions and workarounds for any issue that may arise, rather than highlighting faults and thereby losing clients.

<h3>8. Answer: </h3><h2>D. By as many types and as much information as possible </h2><h3>Explanation: </h3>

The purpose of marketing and sales letters is to provide the reader with any and every way that the product can be used to solve a problem, and how it can be put to use. For this purpose, the reader needs to know all the types of products and all relevant information so they can make the decision of whether it helps them with their problems or not.

<h3>9. Answer: </h3><h2>D. Attention, interest, desire, action </h2><h3>Explanation: </h3>

This one is pretty self-explanatory. AIDA is a marketing model that is used to detail all the steps involved in the decision-making process of the consumer. It starts from where the consumer first hears of it (Attention), to the specific steps required in order to help the consumer make the decision of buying the product (Action). This is one of the longest and most widely used models in marketing.


<h2>Please Check the attachment for the remaining answers.</h2>
Download docx
6 0
3 years ago
Read 2 more answers
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