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Semenov [28]
3 years ago
11

Stewart Inc.'s latest EPS was $3.50, its book value per share was $22.75, it had 220,000 shares outstanding, and its debt-to-ass

ets ratio was 46%. How much debt was outstanding? Select the correct answer. a. $4,262,849 b. $4,264,188 c. $4,263,519 d. $4,263,184 e. $4,263,853
Business
1 answer:
stellarik [79]3 years ago
5 0

Answer: Option (c) is correct.

Explanation:

Given that,

EPS = $3.50

Book value per share = $22.75

Shares outstanding = 220,000

Debt-to-assets ratio = 46%

Total Equity (Book Value) = Book value per share × Shares outstanding

                    = $22.75 × 220,000

                    = $5,005,000

Total Assets = \frac{Total\ Equity}{1 - Debt\ to\ assets\ ratio}

                     =  \frac{5,005,000}{1 - 0.46}

                     = $9,268,518.52

Debt outstanding = Total Assets - Total Equity

                              = $9,268,518.52 - $5,005,000

                              = $4,263,518.52

                              = $4,263,519 (approx)

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Answer:

$10,800

Explanation:

Alice's gross income must include the money she received from Richard as part of their divorce settlement, excluding the amount set for child support:

Alice's gross income = 12 x ($1,500 - $600) = 12 x $900 = $10,800

The extra money that Richard gave Alice that was not part of the divorce settlement is not included in her gross income, since it is included in Richard's gross income.

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3 years ago
Why are manufactured goods more valuable to the economy than services (select all that apply)
ahrayia [7]
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5 0
2 years ago
Remo Company and Angelo Inc. are separate companies that operate in the same industry. Following are variable costing income sta
lesya [120]

Answer:

<u>Break-even Sales:</u>

      Remo Company                $128,346.17

      Angelo Inc.                        $201,649.86.

Explanation:

Break-even Sales is the dollar amount of revenue at which there will be neither Profit nor Loss. In other words, it a Point at which Contribution Margin is equal to Fixed Costs. The Formula to Calculate Break-even Sales is:

                         Fixed Cost / Contribution Margin Ratio

where

Contribution Margin Ratio is Sales less Variable Expenses, and expressed as a percentage of Sales.

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Angelo Inc.

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3 0
3 years ago
Select all that apply. Select all the items that describe the benefits that consumers may receive from more sellers in the marke
Orlov [11]
The following apply:
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3. More variety of goods and services.
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3 0
3 years ago
According to the CAPM, what is the market risk premium given an expected return on a security of 15.8%, a stock beta of 1.1, and
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Answer:

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Explanation:

The CAPM or Capital Asset Pricing Model is used to calculate the required rate of return on a stock which is the minimum return that is expected or required by the investors to invest in a stock based on its systematic risk as measured by the beta of the stock.

The formula to calculate r under the CAPM is,

r = rRF + Beta * rpM

Where,

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To calculate the risk premium on market, we will input the available values for r, rRF and beta in the equation above.

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rpM = 0.08 or 8%

So, the risk premium on market is 8%

3 0
3 years ago
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