Answer:
B. a dividend yield which is less than that of the average firm
Explanation:
The P/E ratio can be regarded as ratio that give analysis of value that market is willing to pay at the moment with regards to the earnings in past or future. When the P/E ratio is high then
stock's price is considered high compare to the earnings, a low P/E ratio can be interpreted as having low stock price with respect to the earnings. Stocks that has its P/E ratios below 15 are usually regarded as been cheap , those with ratio above 18 are considered expensive. It should be noted that, A company whose stock is selling at a P/E ratio greater than the P/E ratio of a market index most likely has a dividend yield which is less than that of the average firm.
Answer:
The total amount of cash to report in the balance sheet is $14,325
Explanation:
The amount of cash to report in the balance sheet is computed below
Items Amount
Currency located at the company $675
Short-term investments that $1,575
mature within three months
Balance in savings account $7,000
Checks received from customers $275
but not yet deposited
Coins located at the company $100
Balance in checking account <u>$4,700</u>
Total Cash <u>$14,325</u>
The pencils would be considered a Business.
What is a Business?
An organisation or enterprising entity engaging in commercial, industrial, or professional activity is referred to as a business. Businesses can be for-profit corporations or charitable institutions. Limited liability firms, sole proprietorships, corporations, and partnerships are among the several types of businesses.
A business is defined as a profession or trade that involves buying and selling goods and services with the intention of making a profit. Farming is a prime example of a business. A home sale is an illustration of commerce.
Different Business Structures
- Sole proprietorship. A sole proprietorship is the most common type of business structure.
- Limited liability company.
Learn more about Business here:
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Hello, yes it's actually common for people to give up their home to avoid further payment only if their lender agrees and allows that to happen. But of course, the remaining balance (the difference of the house value and what's left of the mortgage) must be paid. Walking away from an underwater mortgage can seriously affect that person's financial future and by extent his/her relationship with the community. His/Her credit score will go down with this, it may be difficult for him/her to qualify for another mortgage in the future. Another reason is that - in most states, it is completely legal for lenders to go after the difference (deficiency) because technically they own that and have rights to it.
Answer:
$125,000
Explanation:
Opening values of;
Total assets = $120,000
Total liabilities = $40,000
Total equity = $120,000 - $40,000 = $80,000
During the year,
Total revenues = $140,000
Total expenses = $50,000
Withdrawal by owner = $45,000
The amount withdrawn by the owner reduces the owners equity. This may be deducted from the net income.
Net income from the year = $140,000 - $50,000 - $45,000
= $45,000
This will be added to the opening owner's equity to get the closing owner's equity.
Owner's equity at the end of the year = $80,000 + $45,000
= $125,000
