Answer:
a. Current ratio = Total current assets / Total current liabilities = $366 / $226 = 1.62 to 1
b. Average receivable = (Beginning receivables + Ending receivables) / 2 = ($156 + $160) / 2 = $158
Average collection period = Number of days in year / Credit sales * Average accounts receivable = 365 / $1,702 * $158 = 33.88 days
c. Average Stockholder's equity = (Beginning equity + Ending equity) / 2 = ($500 + $550) / 2 = $525
Return on stockholder's equity = Net income / Average stockholder's equity = $112 / $525 = 21.33%
d. Earnings per share = Net income / Common shares outstanding = $112 / 46 = $2.43 per share
Price earnings ratio = Market price per share / Earnings per share = $50 / $2.43 = 20.58 times
e. Dividends per share = Dividends / Common shares outstanding = $92 / 46 = $2.00 per share
Dividend yield ratio = Dividend per share / Market price per share = $2.00 / $50 = 4.00%
Workings
Beginning retained earnings $346
Add: Net income $112
Less: Ending retained earnings -<u>$366</u>
Dividends <u>$92</u>
Answer: B - 2.09 years
Explanation:
Discounted payback period calculates how long it takes for the amount invested in a project to be recovered from the cash flows generated from the project.
The calculation used in getting the answer is found in the attachment.
Calculations go from year 1 to year 6, screen isn't big enough to show all calculations.
present worth is $76273.60
Answer:
Finance Learning Corporation
Explanation:
Answer:
The explanation is below
Explanation:
A. Shutdown point is achieved when price equal AVC. when price lowers than the AVC, firm shutdown.
VC = q^2
AVC = q
So,
P = q is the shutdown point.
B. For profit maximizing level of output,
P = MR = MC
500 = 20 + 2q
q = 240 units
So, profit maximization level of output = 240 units
C. Firm level supply curve = MC curve above the shutdown point
Number of firms = 5
So,
Industry supply curve = 10*MC = 200+20Q
Industry supply curve = 200+20Q
It shows that MC curve above the shutdown point is supply curve.
