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bagirrra123 [75]
3 years ago
5

Use the following information for ECE incorporated: Shareholder Equity $100 million Assets $200 million Sales $300 million Net I

ncome $15 million Interest Expense $2 million If ECE's stock is currently trading at $24.00 and ECE has 25 million shares outstanding, then ECE's market-to-book ratio is closest to:
Business
1 answer:
Zepler [3.9K]3 years ago
8 0

Answer:

6.0

Explanation:

Market to book ratio is calculated as ; Market capitalization / Net book value.

Where,

Market capitalization = Price per share × Total shares outstanding

= $24 × 25,000,000 shares

= $600,000,000

Then,

Net book value = Total assets - Total liabilities

= $200,000,000 - $100,000,000

= $100,000,000

Therefore,

Market to book ratio = $600,000,000 / $100,000,000

= 6.0

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Your uncle has $340,000 invested at 7.5%, and he now wants to retire. He wants to withdraw $35,000 at the end of each year, star
timama [110]

Answer:

17.27 years

Explanation:

For this question we use the NPER formula that is shown on the attachment below:

Provided that  

Present value = $340,000

Future value = $25,000

PMT = $35,000

Rate of interest = 7.5%

The formula is shown below:

= NPER(Rate;PMT;-PV;FV;type)

The present value come in negative

So, after solving this, the number of year is 17.27 years

5 0
3 years ago
Kenneth wants to start a new business. To get start-up capital, he takes a short-term loan from a bank. The bank agrees to provi
Scilla [17]

Option D

Revolving credit agreement short-term financing sources Kenneth utilizes to fund his business in the given scenario

<h3><u>Explanation:</u></h3>

Revolving credit means is a line of credit that is established among a bank and a business. It has an organized peak amount, where the firm has a way to the funds at any time when demanded. It is required for companies that may seldom hold low cash surpluses to continue their networking capital demands.

Because of this, it is frequently regarded as a kind of short-term funding that is normally paid off suddenly. To begin the loan, a bank may impose a commitment fee. This remunerates the bank for holding an open way to a potential loan, where interest fees are only initiated when the revolver is carried.

6 0
3 years ago
Rauch Incorporated leases a piece of equipment to Donahue Corporation on January 1, 2017. The lease agreement called for annual
Likurg_2 [28]

Answer:

PART-1)

Fair value of leased asset to lessor  = 25,000

Minus: PV of un-guaranteed residual value $8,250 X 0.82270  = 6,787

Amount to be recovered through lease payments  = 18,213

Four periodic lease payments ($18,213 /3.72325)  = 4,892

PART-2)

<u>01/01/2017 </u>

Debit: Cash  = 4,892

Credit: Unearned Lease Revenue  = 4,892

<u>12/31/2017</u>

Debit: Unearned Lease Revenue  = 4,892

 Credit: Lease Revenue  = 4,892

<u>12/31/2017</u>

Debit: Depreciation Expense  = 3,333

 Credit: Accumulated Depreciation – Equipment  = 3,333

6 0
3 years ago
Which of the following statements is true with regard to the departmental overhead rate method? a. It is logical to use this met
baherus [9]

Answer:

b. It is logical to use this method when overhead resources are consumed by various products in substantially different ways throughout multiple departments.

Explanation:

The departmental overhead rate method -

It refers to the expense rate charged for the specific department of the factory for the goods and services produced , is referred to as the departmental overhead rate method.

It is a type of some standard charge imposed for the particular activity produced, for each and every step of the production of the goods and service, until the final product is produced, at various level a specific rate is applied, i.e. , the departmental overhead rate method.

Hence, from the given information of the question,

The correct answer is b.

6 0
3 years ago
What are adjustable rates for life policy loans in florida based on?
cestrela7 [59]
The adjustable rates for life policy loans in Florida are based on Moody's Corporate Bond Index. These bonds have a maturity life of 30 years and are highly rated to earn more value and money as time progresses. The Moody Corporate Bond Index is also know as Moody's Seasoned Corporate Bond Yield.
8 0
3 years ago
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