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Darya [45]
3 years ago
9

Bauer Software's current balance sheet shows total common equity of $5,125,000. The company has 530,000 shares of stock outstand

ing, and they sell at a price of $27.50 per share. By how much do the firm's market and book values per share differ?
Business
1 answer:
Mumz [18]3 years ago
5 0

Answer:

The difference is $9,450,000

Explanation:

Market Value of Share = $27.50 x 530,000

                                     =$14,575,000

Book Value  = $5,125,000.

Difference    = $14,575,000- $5,125,000.

                   =$9,450,000

The market value is greater than book value by $9,450,000

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On January 1, 2017, Burke Corporation signed a 5-year noncancelable lease for a machine. The terms of the lease called for Burke
SOVA2 [1]

Answer:

<em>Operating Lease</em>

<em />

Explanation:

5years / 6 years = 83.33% above 75% of the useful life

the ownership reverts at the end of the lease

the lessor has risk considering the residual value is not guaranteed

We aren't given with information about the asset value to check if it is paying the entire value of the asset.

But for the information given we can conclude it is an operating lease.

6 0
3 years ago
SOMEONE PLEASE HELP ME ASAP PLEASE!!!!
mojhsa [17]

Answer:B

Explanation:

This is because as one's income increases his aggregate demand also increases as they both have direct relationship with each other.

5 0
3 years ago
Other financial data for the year ended December 31, 2019: Included in accounts receivable is $1,200,000 due from a customer and
Kipish [7]

Answer:

$5,055,000

Explanation:

Note: <em>The full question is attached below</em>

<em />

Particulars                                                                    Amount

Cash                                                                            $875,000

Accounts receivable                          $2,695,000  

Less: Installments not due in 2021   <u>($600,000)</u>      $2,095,000

[$1,200,000 - ($150,000 * 4)]  

Inventory                                                                      <u>$2,085,000</u>

Total of current assets                                               <u>$5,055,000</u>

5 0
2 years ago
When comparing a Variable Rate Demand Obligation (VRDO) to an Auction Rate Security (ARS), which statement is FALSE?
lozanna [386]

Answer:

Both have tender options.

Explanation:

Variable rate demand obligation and Auction rate securities both are long term bonds which have interest rate that reset weekly or monthly.  This advantages the issuer with lower short term rates despite of long term security. Both of these securities are subject to credit risk of the issuer and they are marketed by broker dealers.

5 0
3 years ago
Pacific Packaging's ROE last year was only 6%; but its management has developed a new operating plan that calls for a debt-to-ca
Gre4nikov [31]

Answer:

0.11%

Explanation:

Given that

Earning before interest and tax = $560,000

Interest = $336,000

The computation of company's return on equity is shown below:-

So, the Earning before tax

= $560,000 - $336,000

= $224,000

Tax = $224,000 × 30%

= $67,200

Earnings after interest and taxes = Earning before tax - Tax

= $224,000 - $67,200

= $156,800

Asset turnover ratio = total revenue ÷ total assets

3.4 = $8,000,000  ÷ total assets

Total assets = 2,352,941.18

Equity ratio = 1 - debt ratio

= 1 - 0.40

= 0.60

Total Equity = equity ratio × total assets

= 0.60 × 2,352,941.18

= 1,411,764.71

Return on Equity = Net income ÷ Equity

= $156,800 ÷ 1,411,764.71

= 0.11%

6 0
2 years ago
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