Well, someone could be severely injured, which could cost LOTS of money to pay for the hospital bills.
Answer:
$50
Explanation:
Given that,
Annual dividend per share = $6
preferred stock trading yesterday at = $60 per share
Required rate of return for the stock went up to = 12%
Cost of preferred stock = (Dividend ÷ share price)
0.12 = (6 ÷ New share price
)
New share price = (6 ÷ 0.12)
New share price = $50
Therefore, the new price of the shares will be $50.
The poorest 10 percent of the US population earned less than $392 per week in 2013.
Answer:
The correct answer is 23.33 and 11.67.
Explanation:
According to the scenario, the given data are as follows:
ROE = 20%
Plowback ratio = 0.30
Earning per share = $2
Rate of return = 12%
So, we can calculate the price and P/E ratio by using following formula:
First we calculate the growth rate of the company.
So, Growth rate (g) = Plowback ratio × ROE
By putting the value we get,
Growth rate = 0.30 × 0.20 = 6%
Now we calculate the price,
So, Price = Earning × ( 1 - Plowback ratio) ÷ ( Return rate - Growth rate)
= $2 × ( 1 - 0.30) ÷ ( 0.12 - 0.06)
= 1.4 ÷ 0.06
= 23.33
And P/E ratio = Price ÷ earning per share
= 23.33 ÷ 2
= 11.67
Answer:
(a) revenues recognized and deferred,
a decrease in deferred revenues and a recognition of accrued revenues results in higher working capital (current assets increase while current liabilities decrease)
(b) cost of goods sold,
An increase in cost of goods sold results in a decrease of inventories, therefore, working capital decreases (less current assets)
(c) employee salary and wages
employee wages decrease cash (if they are paid) or increase wages payable (current liability) if they are not paid yet. It decreases working capital
(d) income tax expense.
income taxes decrease cash (if they are paid) or increase income taxes payable (current liability) if they are not paid yet. It decreases working capital