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Len [333]
3 years ago
6

Little Book LTD has total assets of $860 000. There are 75

Business
1 answer:
malfutka [58]3 years ago
5 0

a)Little book LTD earning per share is $1.118 per share.  

Explanation:

To calculate earning per share we will use following formula:

\frac{net income}{weighted average  shares outstanding}

Now to find net income we will take help of  asset turnover ratio :\frac{net sales}{total asset}

Asset turnover ratio = \frac{x}{860000}

\begin{align}\frac{x}{$86000}\end{align}1.5 × $860000 = x

x (net sales) = $1290000

Outstanding shares = 75000 shares

So Net Income  = $1290000×.065

                          = $83850

Now Earning per share = \frac{83850}{75000}

    Earning per share = $1.118

b)  Market to Book Ratio will be 1.2 for Little Book LTD.

Explanation:

Market to Book Ratio =\frac{Market Capitalization}{Total Book Value}

Market Capitalization = $ 75000× $ 12

                                    = $900000

So, Market To Book Ratio =\frac{900000}{750000}

       Market To Book Ratio = 1.2            

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The name of the concept <em>which is illustrated</em> in this scenario about Jacob seeking deals that would <em>benefit his own interests more than the company </em>he is representing is known as:

  • B. Self dealing

According to the given question, we are asked to state the name of the concept <em>which is illustrated</em> in this scenario about Jacob seeking deals that would <em>benefit his own interests more than the company </em>he is representing.

As a result of this, we can see that Jacob is self dealing because he is acting in his own interests in order to get significant bonuses in addition to his salary.

Therefore, the correct answer is option B

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3 years ago
"The price (P) of designer jeans is affected by the supply (S) and the demand (D).
katovenus [111]
The correct answer is <span>B. Demand for more pairs of jeans results in an increase in both price and quantity supplied.

You can see that demand is increasing since d2 is on the right of d1. You can also see that prices increase since p2 is greater than p1. You can also see that quantity supplied also increases since q2 is on the right of q1.</span>
3 0
4 years ago
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In studying for her real estate license, Elise is reading about police power. She is confused and doesn't understand why law enf
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In studying for her real estate license, Elise is reading about police power.  he term "police power" refer to in real estate refers to The government's authority under the Constitution to place limits on individual freedom in the name of protecting the public health, safety, and welfare. This is further explained below.

<h3>What is police power?</h3>

Generally, police power is simply defined as the authority granted to the state by the Constitution to impose reasonable restrictions on individuals or businesses for the public's protection and good.

In conclusion, When it comes to subdividing property, the police have complete authority and direction.

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4 0
2 years ago
Gardner Company expects sales for October of $249,000. Experience suggests that 45% of sales are for cash and 55% are on credit.
yarga [219]

Answer:

$68,475

Explanation:

Data provided

Sales in October = $249,000

Credit percentage = 55%

Following month percentage = 50%

The calculation of accounts receivable is shown below:-

Credit sales in October = $249,000 × 55%

= $136,950

Collection collected in October

= $136,950 × 50%

= $68,475

Therefore, for computing the collection collected in October we simply multiply the credit sales in October with following month percentage.

6 0
4 years ago
"expects to generate free cash flows of $200,000 per year for the next five years. Beyond that time, free cash flows are expecte
Mumz [18]

Answer:

The value of the firm's stock is $703,920

The price is $5.63 per share ($703,920/125,000 shares)

Explanation:

a) Data and Calculations:

Free cash flows = $200,000

Present value of the free cash flows = $200,000 x Annuity Factor, for 5 years at cost of capital of 15% x (1 + growth rate)

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To calculate Company XYZ's free cash flows in their present value, they are discounted, using the present value table.  The resulting amount is equivalent to the value of the common stock.  The company's free cash flow is the amount that is left after settling operating expenses and capital expenditure.

7 0
3 years ago
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