Answer:
$4.3
Explanation:
For computing the share price, first, we have to compute the Value of firm which is shown below
= Free cash flow ÷ (cost of capital - growth rate)
= $16 million ÷ (10.6% - 2.8%)
= $16 million ÷ 7.8%
= $205.12 million
Now find the equity value which equals to
= Value of firm - debt value + cash
= $205.12 million - $23 million + $8 million
= $190.12 million
And, the number of outstanding shares is 44 million
So, the price per share would equal to
= Equity value ÷ number of outstanding shares
= $190.12 million ÷ 44 million shares
= $4.3
Answer:
Find in the excel file attached detailed adjusting entries required for all transactions in the question.
Explanation:
Please note the analysis of each transaction done under the heading "particulars".
Answer: C. because they are easy to use and can accommodate all varieties of information
Explanation:
ape x just took it
Answer:
The correct answer is $23,33 per share.
Explanation:
According to the scenario, the given data are as follows:
Net income for 2019 = $280,000
Number of shares in 2018 = 10,000
Number of shares in 2019 = 14,000
So weighted average number of shares = (10,000 + 14,000) ÷ 2
= 12,000
So, we can calculate the earnings per share by using following formula:
Earning per share = Net income for 2019 ÷ weighted average number of shares
By putting the value, we get
$280,000 ÷ 12,000
= $23.33 per share
Answer:
35,000
Explanation:
Given:
2018 ending inventory understated = 9,000
2017 ending inventory understated = 14,000
Pretax income = $40,000
Computation:
We know that ending inventory 2017 is opening inventory of 2018 so, we say that Opening inventory of 2018 understated by $14,000.
According to rules, Opening inventory understated, overstated the profit and ending inventory understated, understated the profit.
2018 ending inventory understated will be added into profit and 2017 ending inventory understated will subtract from the profit.
Profit during the year = $40,000 +$9,000 -$14,000
Profit during the year = $35,000