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Westkost [7]
2 years ago
15

Winston Watch's stock price is $70 per share. Winston has $10 billion in total assets. Its balance sheet shows $1 billion in cur

rent liabilities, $3 billion in long-term debt, and $6 billion in common equity. It has 400 million shares of common stock outstanding. What is Winston's market/book ratio? Do not round intermediate calculations. Round your answer to two decimal places.
Business
1 answer:
GarryVolchara [31]2 years ago
6 0

Answer:

The Market/book ratio is 5.67.

Explanation:

Book value per share = (common equity)/(number of shares)

                                    = ($ 6 billion)/($ 400million )

                                    = $ 15 per share

Market/book ratio = (market price per share)/(book value per share

                               = $75/$15

                               = 5.00

Therefore, the Market/book ratio is 5.67.

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To guide cost allocation decisions, the ability to bear criterion ________.
hoa [83]

Answer:

the answer is D

Explanation:

Disagree. Cost accounting data plays a key role in many management planning and control decisions.  The division president will be able to make better operating and strategy decisions by being involved in key decisions about cost pools and cost allocation bases. Such an understanding, for example, can help the division president evaluate the profitability of different customers The salary of a plant security guard would be a direct cost when the cost object is the security department of the plant.  It would be an indirect cost when the cost object is a product. Exhibit 14-1 outlines four purposes for allocating costs:

1.   To provide information for economic decisions.

2.   To motivate managers and employees.

3.   To justify costs or compute reimbursement.

4.   To measure income and assets for reporting to external parties.

Exhibit 14-2 lists four criteria used to guide cost allocation decisions:

1.   Cause and effect.

2.   Benefits received.

3.   Fairness or equity.

Ability to bear. The cause-and-effect criterion and the benefits-received criterion are the dominant criteria when the purpose of the allocation is related to the economic decision purpose or the motivation purpose. Using the levels approach introduced in Chapter 7, the salesvolume variance is a Level 2 variance. By sequencing through Level 3 (salesmix and salesquantity variances) and then Level 4 (marketsize and marketshare variances), managers can gain insight into the causes of a specific sales-volume variance caused by changes in the mix and quantity of the products sold as well as changes in market size and market share. The total salesmix variance arises from differences in the budgeted contribution margin of the actual and budgeted sales mix. The composite unit concept enables the effect of individual product changes to be summarized in a single intuitive number by using weights based on the mix of individual units in the actual and budgeted mix of products sold. A favorable salesquantity variance arises because the actual units of all products sold exceed the budgeted units of all products sold. The salesquantity variance can be decomposed into (a) a marketsize variance (because the actual total market size in units is different from the budgeted market size in units), and (b) a market share variance (because the actual market share of a company is different from the budgeted market share of a company). Both variances use the budgeted average contribution margin per unit.

8 0
3 years ago
Over a four-year period, LaKeisha Thompson purchased shares in the Oakmark I Fund. Using the following information, answer the q
ArbitrLikvidat [17]

Answer:

LaKeisha Thompson

a. At the end of four years, the total amount invested is:

= $6,000

b. At the end of four years, the total number of shares purchased is:

= 166.81

c. At the end of four years, the average cost for each share is:

= $35.97.

Explanation:

a) Data and Calculations:

Investments in Oakmark I Fund:

Year            Investment        Price      Number

                      Amount     per share    of share

Feb 2008        $1,500           $40        37.50

Feb 2009          1,500             30        50

Feb 2010           1,500             34        43.60

Feb 2011            1,500             42        35.71

Total               $6,000                        166.81

Average cost per share = $35.97 ($6,000/166.81)

7 0
3 years ago
The fee the bank charges the depositor of a bad check is...
Naya [18.7K]
I think its $12 for it.
6 0
3 years ago
Read 2 more answers
Kansas Enterprises purchased equipment for $73,500 on January 1, 2018. The equipment is expected to have a five-year life, with
creativ13 [48]

Answer:

Using the straight-line method, the book value at December 31, 2018 would be: A.$53,760.

Explanation:

       Year 1 Year 2 Year 3 Year 4 Year 5

Cost 67200 53.760 40.320 26.880 13.440

Dep-Acu   13.440 13.440 13.440 13.440 13.440

Book Value 53.760 40.320 26.880 13.440 0

8 0
3 years ago
Advanced Analysis) Suppose that the linear equation for consumption in a hypothetical economy is:
natima [27]

Answer:

0.8; 0.2; $360; 90%; 10%

Explanation:

Linear equation for consumption is as follows:

C = 40 + 0.8Y

suppose that income (Y) = $400

MPC = 0.8

Marginal propensity to save = 1 - Marginal propensity to consume

MPS = 1 - 0.8

       = 0.2

C = 40 + 0.8Y

C = 40 + 0.8 × 400

   = $360

Therefore, consumption is $360.

Average propensity to consume ( APC):

= Consumption ÷ Income level

= 360 ÷ 400

= 0.9

= 90%

We know that income is either consumed or saved, therefore,

Y = C + S

$400 = $360 + S

S = $40

Average propensity to save ( APS):

= Savings ÷ Income level

= 40 ÷ 400

= 0.1

= 10%

5 0
3 years ago
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