A corporation issues 2,000 shares of common stock for $32,000. The stock has a stated value of $12 per share. The journal entry
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Answer:
a. 4.91
b. 2.50 days
Explanation:
a. Inventory turnover
= Cost of goods sold / Average inventory
Average inventory =( Ending inventory + Opening inventory) / 2
= (4,676,000 + 4,190,000) / 2
= $4,433,000
Inventory turnover = 21,766,030 / $4,433,000
= 4.91
b. Days' sales in average receivables
= Average Account Receivables / Average daily sales
Average account receivables = (Ending receivables + Opening receivables) / 2
= (100,800 + 378,500) / 2
= $239,650
Average daily Sales = Sales / 365
= 34,988,900 / 365
= $95,860
Days' sales in average receivables = 239,650 / 95,860
= 2.50 days
Answer:
Explanation:
The <em>value</em> of a <em>stock</em> equals the flow of the <em>dividends</em> discounted at the expected rate of return.
The formula to calculate the value of a stock when the dividends are expected to <em>grow at a constant rate</em> g, when the expected<em> rate of return</em> is r, is:
Here you know value = $29.00 per share, dividend at the end of the first year = $ 2.45 per share, constant rate at which the dividend is expected to grow r = 6.50%. Then, you can solve for r:
Substitute: