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kvasek [131]
2 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]2 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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Agency costs faced by MNCs may be larger than those faced by purely domestic firms because:

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<h3>What are multinational corporations?</h3>

Multinational corporations can be regarded as one that have the license to operates in more than one country at a time.

Agency costs faced by MNCs may be larger than those faced by purely domestic firms due to how foreign subsidiary managers raised in different cultures may not follow  uniform goals.

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2 years ago
Chino Company reported net income of $23,000 for the current year. During the year, Inventory decreased by $7,500, Accounts Paya
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Answer: A). $25,750.

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= 23,000 + 10,500 + 7,500 - 8,250 - 7,000

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7 0
3 years ago
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Fill in the blanks: direct deposit typically refers to your ______ sending your ______ electronically to your bank account.
d1i1m1o1n [39]

Direct deposit typically refers to your <u>employer</u> sending your<u> paycheck </u>electronically to your bank account.

<h3>What is direct deposit?</h3>

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Most companies or organization tend to make use of direct deposit system to pay their employee salary or paycheck instead of giving them cash or  using check .

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6 0
1 year ago
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It is likely that airplane tickets will be increased by 5% each year for the next four years. The cost of the plane ticket to De
Luba_88 [7]

Answer:

The amount to save now is = $862.03 (to 2 decimal places)

Explanation:

In order to solve this, we will compute the end-of-year amounts using the 5% increase each year. This is done as follows:

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Next to calculate the amount needed to pay for one travel ticket per year for the next four years, we will add the prices of the tickets each year as follows:

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5 0
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