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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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Answer:

PV= $8,447

Explanation:

Giving the following information:

Future value= $13,000

Number of months= 9*12= 108

Interest rate= 0.4/100= 0.004 compounded montlhy

To calculate the initial investment required, we need to use the following formula:

PV= FV/(1+i)^n

PV= 13,000/(1.004^108)

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3 years ago
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Answer:

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Explanation:

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<h3><em>B</em><em>ut remember that the depreciation calculated for the accounting period would be expensed out by $500 in the income statement, for the period generated.</em></h3>
3 0
3 years ago
The council members of a small town have decided that the earth levee that protects the town from flooding should be rebuilt and
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Answer:

$230,899

Explanation:

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Therefore the Present cost of the repair work will be $230,899

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3 years ago
Suppose a negative externality exists in a market. if transactions costs are low and parties are willing to bargain then, accord
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Under these conditions an efficient solution can be reached regardless of the initial assignment of property rights.

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You are the CEO of a company that has to choose between making a $100 million investment in either Russia or Poland. Both invest
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Poland has already gained benefits and stability offered by the EU. Russia, by contrast, is still many years away from even being in a position to be considered by the EU for membership.

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