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Gekata [30.6K]
3 years ago
11

Your next-door neighbor thinks that she has discovered the next food craze: a blend of Chinese and Mexican cuisine she is callin

g Wildhorse. She already has one location that is busy all day. She currently has gross sales of $17.55 million. Her expenses, which include ingredients, rent, and personnel, run $15.20 million. Your neighbor is considering bringing in outside investors. She would like to issue 5 million shares of stock and sell the stock for $32.55 each in an IPO. If she does this, how much would someone who purchases one share earn? In other words, what is the earnings per share for the company?
Business
1 answer:
Maru [420]3 years ago
5 0

Answer:

$33.02

Explanation:

EPS (Earnings Per Share) would be simply,

Total Earnings divided by the number of shares outstanding

First, we need to find our total earnings. We will get this by summing up Sales and Net Income from selling shares. Then we will minus the expenses.

So,

Sales = 17.55 mill

Net Income from Shares = 5 mill shares AT $32.55 each = 5 mill * 32.55 = $162,750,000

Expenses = 15.20 mill

Thus,

Total Earnings = 17,550,000 + 162,750,000 - 15,200,000 = 165,100,000

Total Shares = 5 million

So, EPS would be:

EPS = 165,100,000/5,000,000 = <u>$33.02</u>

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Kennedy Enterprises has budgeted sales for the months of September and October at $ 110 comma 000 and $ 170 comma 000​, respecti
Andru [333]

Answer:

The answer is $137,600

Explanation:

Budgeted sales for September = $110,000

Budgeted sales for October = $170,000

Credit sales for September:

0.6 x $110,000

$66,000

90% will be collected the following month (October)

0.9 x $66,000

=$59,400.

Credit sales for October:

0.6 x $170,000

$102,000

10% will be collected the same month (October)

0.1 x $102,000

=$10,200

Cash sales in October

0.4 x $170,000

$68,000

The total October cash collections from​ customers is

$59,400 + $10,200 + $68,000

= $137,600

7 0
3 years ago
If a specific subsidy​ (negative tax) of s is given to only one competitive​ firm, how should that firm change its output level
elena-s [515]

Answer:

The correct answer is option D.

Explanation:

The market price is P.

The marginal cost is given at MC.

The subsidy is equal to s.  

When the subsidy is provided to only a single firm, that firms marginal cost will decline. The firm can take advantage of decreased marginal cost by increasing the output level. The firm will produce the output where the price and marginal revenue is equal to marginal cost plus subsidy. At this point, the firm will be having maximum profit.

So, the firm will increase production until

P=MC+S

6 0
3 years ago
Powers Company reported net sales of $1,250,000, average Accounts Receivable, net of $73,500, and net income of $53,150. The acc
ipn [44]

Answer:

17 times

Explanation:

Data provided in the given question :-

Net Sales = $1,250,000

Average account Receivable = $73,500

Net Income = $53,150

So, the accounts receivable turnover ratio is given below :-

Accounts receivable turnover ratio = Net sales ÷ Average accounts receivable

= $1,250,000 ÷ $73,500

= 17 times

Hence the net income is ignored for calculating the account receivable turnover ratio.

4 0
3 years ago
Ways which business can overcome competition in the market environment​
AnnZ [28]
<h2><em>Ten ways to keep ahead of the competition</em></h2>

<em>Know the competition. Find out who your competitors are, what they are offering, and what their strengths and weaknesses are. ...</em>

<em>Know your customers. ...</em>

<em>Differentiate. ...</em>

<em>Step up your marketing. ...</em>

<em>Update your image. ...</em>

<em>Look after your existing customers. ...</em>

<em>Target new markets. ...</em>

<em>Expand your offer.</em>

3 0
3 years ago
Leonardo, who is married but files separately, earns $90,000 of taxable income. He also has $8,750 in city of Tulsa bonds. His w
UkoKoshka [18]

Answer: 17.56%

Explanation:

Given that,

Leonardo taxable income = $90,000

Tulsa bonds = $8,750

Theresa taxable income = $50,000

Computation of Leonardo's Tax:

According to the tax rate schedule,

Total Tax = Tax + 24% of taxable income over $82,500

                = $14,089.50 + 24% × $7,500

                = $14,089.50 + $1,800

                = $15,889.5

Computation of Theresa's Tax:

According to the tax rate schedule,

Total Tax = Tax + 22% of taxable income over $38,700

                = $4453.50 + 22% × $11,300

                = $4453.50 + $2,486

                = $6939.5

Total tax on Leonardo's income and Theresa's income:

= $15,889.5 + $6939.5

= $22,829

Effective tax rate = \frac{Total\ Tax}{Total\ Taxable\ Income}\times100

                              = \frac{22,829}{130,000}\times100

                              = 17.56%

5 0
3 years ago
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