1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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

You might be interested in
You own shares of Somner​ Resources' preferred​ stock, which currently sells for per share and pays annual dividends of ​$ per s
dimulka [17.4K]

Answer:

You should buy more shares

Explanation:

The above-mentioned question is missing few components. I have added them to explain on how the question would be solved if all the variables were provided. Please note the additions in bold text below. The answer of which is given afterwards.

You own 300 shares of Somner​ Resources' preferred​ stock, which currently sells for $39 per share and pays annual dividends of ​$5.50 per share. If the​ market's required yield on similar shares 12% is ​percent, should you sell your shares or buy​ more?

Solution as mentioned below:

First of all we need to calculate value of the preferred stock by dividing the annual dividend per share from the market required rate.

Value of preferred stock = 5.50 / 12%

Value of preferred stock = $45.83

Now given the fact that the current price at which the stocks are sold is $39 which is less than the price at which they are actually valued which is $45.83. You should buy more of the shares as they are currently undervalued.

8 0
3 years ago
Janes, Inc., is considering the purchase of a machine that would cost $410,000 and would last for 5 years, at the end of which,
ki77a [65]

Answer:

- $33,678.21

Explanation:

Cash flow Summary of the Project will be as follows

Year 0 = $410,000 + $3,000 = - $413,000

Year 1 = $101,000

Year 2 = $101,000

Year 3 = $101,000

Year 4 = $101,000

Year 5 = $101,000 + $41,000 + 3,000 =  $145,000

So the Net Present Value can now be calculated using the CFj function of a Financial calculator as follows :

- $413,000 CF 0

  $101,000 CF 1

  $101,000 CF 2

  $101,000 CF 3

  $101,000 CF 4

 $145,000 CF 5

i/yr = 13%

Shift NPV = - $33,678.21

5 0
3 years ago
Beta Company leased equipment from Summer Industries. The lease agreement qualifies as a finance lease and requires annual lease
Tamiku [17]

Answer:

Total increase in pretax earnings on Summer’s December 31, 2019, income statement is $20,253

Explanation:

Fair value of asset sold on lease = Present value of lease payments = $50,000 * Cumulative PV factor at 6% for 8 periods of annuity due

= $50,000 * 6.20979

= $310,490

Interest income for 2019 = ($310490 - $50,000) * 6% = $15,629

Total increase in pretax earnings on Summer’s December 31, 2019, income statement = $310490 - $300,000 + $15,629 - 5866 = $20,253

3 0
3 years ago
You are considering adding a microbrewery on to one of your firm's existing restaurants. This will entail an increase in invento
Contact [7]

Answer:

The change in net working capital resulting from the addition of the microbrewery is $5,500 (decrease)

Explanation:

There are 3 key elements of working capital. These are;

  • Inventory
  • Accounts payable
  • Accounts receivable

Given;

increase in inventory = $8,000

increase in Accounts payable = $2,500

Change in net working capital resulting from the addition of the microbrewery = -$8,000 + $2,500

= -$5,500

8 0
3 years ago
An official statement has a dated date of March 1, but the first interest payment is October 15. This most likely reflects A) a
Greeley [361]

Answer:

A) a long coupon.

Explanation:

Hope this helps you :)

3 0
2 years ago
Other questions:
  • The international organization for standardization (iso) organizes its standards by both the international classification for st
    9·1 answer
  • The cost accountants at the Doering Company regressed total overhead costs and direct labor hours for the past 30-months and rep
    6·1 answer
  • GDP would include all of the following except:
    5·1 answer
  • High self-monitors respond more to _____ advertising.
    13·1 answer
  • Judy Billows, owner of Billows Manufacturing has called a meeting with her department heads. She presents last year's contributi
    9·2 answers
  • Oriole Leasing Company leases a new machine to Sharrer Corporation. The machine has a cost of $65,000 and fair value of $87,000.
    10·1 answer
  • In one state, a lender holds a lien on real property offered as collateral for a loan. The borrower retains both legal and equit
    7·1 answer
  • The following information is from ABC Company's general ledger: Beginning and ending inventories, respectively, for raw material
    5·1 answer
  • Amelie received an email that claimed to be from a Nigerian prince who needed help setting up
    12·1 answer
  • Discounted cash flow methods consider the present value of the cash flows after the recovery of the initial investment. quizlet
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!