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Ugo [173]
3 years ago
10

Based on the corporate valuation model, the total corporate value of chen lin inc. is $900 million. its balance sheet shows $110

million in notes payable, $90 million in long-term debt, $20 million in preferred stock, $140 million in retained earnings, and $280 million in total common equity. if the company has 25 million shares of stock outstanding, what is the best estimate of its stock price per share?
Business
1 answer:
____ [38]3 years ago
4 0

Stock price would be equal to total value of equity divided by no. of shares outstanding. The total value of equity would be calculated as follows:

Total value of equity = corporate value – notes payable – long term debt – preferred stock

= $900 million - $110 million – 90 million – 20 million

= $680 million

The price of the stock would be:

Stock price = total value of equity / no. of shares outstanding

= $680 million / 25 million

= $27.20

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The Work-in-Process inventory account of a manufacturing firm shows a balance of $4,090 at the end of an accounting period. The
Assoli18 [71]

Answer:

125%

Explanation:

The computation of predetermined overhead rate is shown below:-

Manufacturing overhead = $4,090 - ($570 + $370 + $600 + $800)

= $4,090 - $2,340

= $1,750

Total direct labor = $600 + $800

= $1,400

Manufacturing overhead = Predetermined overhead rate × Direct labor

Predetermined overhead rate = Manufacturing overhead ÷ Direct labor

= $1,750 ÷ $1,400

= 125%

Therefore for computing the predetermined overhead rate we simply divide the manufacturing overhead by direct labor.

6 0
3 years ago
Liability insurance is…
Kaylis [27]

Answer:

D

Explanation:

Liability means being responsible for something, usually by law, so liability insurance is when insurance protects you from charges from the other party's injuries and/or damage to their car in the case of an accident.

6 0
2 years ago
Schager Company purchased a computer system on January 1, 2014, at a cash cost of $23,000. The estimated useful life is 10 years
MakcuM [25]

Answer:

Accumulated depreciation= $7,272

Explanation:

Giving the following information:

Purchased: January 1, 2014, at a cash cost of $23,000.

The estimated useful life is 10 years.

The estimated residual value is $2,800.

Under the double-declining balance, we need to use the following formula for each year:

Annual depreciation= 2*[(book value)/estimated life (years)]

2014= [(23,000 - 2,800)/10]*2= 4,040

2015= [(20,200 - 4,040)/10]*2= 3,232

Accumulated depreciation= $7,272

3 0
3 years ago
Compare and contrast the U.S. Constitution and the Arizona Constitution. Discuss three findings that account for the significant
marysya [2.9K]

Development, Structure and powers of U.S constitution and Arizona constitution have a huge comparison.

<u>Explanation: </u>

Unlike the United States Constitution, which was embraced in 1787, that wasn't until 1912 that perhaps the Arizona Constitution was accepted, leading to the creation of the 48 states

The common terms,' we the people' all constitutions begin with, but include many different things. After all, there were certain differences between one condition and another for a set of fifty.

The Arizona Constitution states that the legislature must be split into three parts-Legislative, Legislative and executive–which are not applicable to the United States Constitution

Many think of forms to deny or expel someone from office. They will enforce them in both Constitutions. All define the qualifications for their office if they would like to run for office. Another connection that I found was apparent but significant nonetheless.

They both mention the theme of religious liberty, one of the most valuable values in our society. Eventually, both inspire their lawmakers to negotiate with them.

5 0
3 years ago
Roak Company and Clay Company are similar firms that operate in the same industry. Clay began operations 2 years ago and Roak st
Paladinen [302]

Answer:

<h3>Required:</h3>

1. (a) Which company has the better profit margin? (b) Which has the better asset turnover? (c) Which has thebetter return on assets?

2. Which company has the better rate Of growth in sales?

3. (a) Did Roak successfully use financial leverage in the current year? (b) Did Clay?

4 0
3 years ago
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