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never [62]
3 years ago
10

Rossdale, Inc., had additions to retained earnings for the year just ended of $640,000. The firm paid out $55,000 in cash divide

nds, and it has ending total equity of $7.35 million.
If the company currently has 720,000 shares of common stock outstanding, what are earnings per share? Dividends per share? What is book value per share? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
Business
1 answer:
Usimov [2.4K]3 years ago
6 0

Answer:

Earnings per share is $0.89 per share

Dividends per share is $0.08 per share

Book value per share is $10.21 per share

Explanation:

Additions to Retained Earning = Net Income = $640,000

Dividend Paid = $55,000

Total Equity = $7.35 million = $7,350,000

Common stock outstanding = 720,000 shares

Earning Per Share = Net Income / Number of Outstanding shares

Earning Per Share = $640,000 / 720,000 = $0.89 per share

Dividend per share = Dividend Paid / Number of Outstanding shares

Dividend per share = $55,000 / 720,000 = $0.08 per share

Book value per share = Total Equity / Number of Outstanding shares

Book value per share = $7,350,000 / 720,000 = $10.21 per share

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Presently, Stock A pays a dividend of $1.00 a share, and you expect the dividend to grow rapidly for the next four years at 20 p
brilliants [131]

Answer:

We should pay $46.50 for this stock.

Explanation:

The stock value is the present value of all the future dividends associated with the stock.

Following is the working to calculate the stock value.

Dividend

Year Dividend

_1 ____$1.20

_2 ___ $1.44

_3 ___ $1.73

_4 ___ $2.07

Use following formula to calculate the present value of all the dividends

Present value of Dividend = Dividend value x ( 1 + Expected interest rate )^numbers of years

Now calculate the present value of al the dividends

Year __Working ___________________________ Present values

_1 ____$1.20 x ( 1 + 6% )^-1 ____________________ $1.132

_2 ___ $1.44 x ( 1 + 6% )^-2 ____________________ $1.282

_3 ___ $1.73 x ( 1 + 6% )^-3 ____________________ $1.453

_4 ___ $2.07 x ( 1 + 6% )^-4____________________ $1.640

_5 to onward ___ [$2.07 / ( 6% - 2% )] x ( 1 + 6% )^-4 _ $40.991

Total _____________________________________$46.498

We should pay $46.50 for this stock.

8 0
2 years ago
Our Lady of the Lake Hospital has assembled a group of employees to engage in planning activities. If the group comprises top ex
Katen [24]

Answer: a. long-term plans.

Explanation:

Long term plans in a business are considered Strategic Plans. Strategic plans aim to formulate general long term goals and visions for what the company aims to do in future and what level they aim to be at.

These types of goals are usually for the policy makers in a company being the Top Executives who are tasked with the long term growth of the company.

The Top Executives come up with these plans and then the Mid and lower level managers come up with tactical and operational plans to meet the objectives of the plans.

6 0
3 years ago
16. Which of the following cuts is ideal for smoking?
Ludmilka [50]

[ Answer ]

\boxed{Brisket}

[ Explanation ]

Brisket - Cut from breast or lower chest. Brisket comes from a cow or veal

Brisket is ideal for smoking because of its high fat content. When smoking meat, if the meat does not have lots of fat and is thing, the smoking process can dry out the meat. With brisket, the meat is very fat, causing the meat not to dry out and getting a tender juicy flavor.

When lighting a campfire or barbecue, you may notice lots of smoke. The smoke may affect your breathing, make you thirsty, or dry you out. This is the same affect of the meats. The smoke provides lots more flavor for the meat, and dries it out, if there is not enough fat on the meat.

\boxed{[ \ Eclipsed \ ]}

7 0
3 years ago
Read 2 more answers
In an Oligopoly industry a change in price by one firm will _____ impact the other firms in the industry.
FrozenT [24]

Answer:

The answer is significantly.

Explanation:

Oligopoly is a market situation in which there are few sellers, selling similar goods and services and many buyers. The barriers to entry in this market in high. Example of a oligopoly market is OPEC.

The competition amongst the few sellers is high because they are selling the same thing and a change in price by one firm will significantly affect other firms in the industry. For example, if a firm reduces the price of its goods, this creates a price war and other firms to start reducing their price to match the lower price. And if another firm increases its price, consumers will switch to competitors

3 0
3 years ago
Do you think that their economy will be strong when they have to write off debt from countries that have borrowed heavily from t
Kobotan [32]

Answer:

Yes

Explanation:

7 0
2 years ago
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