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Yuliya22 [10]
3 years ago
11

At year end, Tangshan China Company balance sheet showed total assets of $60 million, total liabilities (including preferred sto

ck) of $45 million, and 1,000,000 shares of common stock outstanding.
Next year, Tangshan is projecting that it will have net income of $1.5 million. If the average PE multiple in Tangshan's industry is 15, what should be the price of Tangshan's stock?

(A) $15.00
(B) $22.50
(C) $52.50
(D) $75.00
Business
1 answer:
Vaselesa [24]3 years ago
6 0

Answer:

The correct answer is $22.5

Explanation:

According to the scenario, computation of the given data are as follows:

We can calculate the price of stock by using following formula:

Price of stock = (Net Income ÷ No of Shares) × PE Ratio

By putting the value in the formula, we get

Price of stock = ( $1,500,000 ÷ $1,000,000) × 15

= $1.5 × 15

= $22.5

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Transfer payment is a payment made by : Government, but not in exchange for a currently produced good or service.

<h3>What is transfer payment?</h3>

Transfer payment refers to a public expenditure, which is made purposely for unemployment compensation other than procuring goods or services.  It is money or other aid that is given by a government without any good or service in return.

Examples of transfer payments include:

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Hence, transfer payment is a payment made by government, but not in exchange for a currently produced good or service.

Learn more about transfer payment here: brainly.com/question/7176766

8 0
2 years ago
The inventory data for an item for November are: Nov. 1 Inventory 20 units at $19 4 Sold 10 units 10 Purchased 30 units at $20 1
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Answer:

cost of goods sold = $580

Explanation:

The cost of the goods sold means the cost price of the total sales volume. As the company uses FIFO (First-in, First-out) method and also uses the perpetual inventory system, the cost of goods sold =

Cost of goods sold =

20 units × $19 = $380 (The price is from November 1)

10 units × $20 = $200 (The price is from November 10)

The total cost of goods sold (30 units) = $580

8 0
3 years ago
The cost system best suited to industries that manufacture a large number of identical units of commodities on a continuous basi
ValentinkaMS [17]

Answer:

Process Costing

Explanation:

Process Costing allows so many units to be in production at the same time which are identical. The cost of each unit can be determined by calculating the average price using to total units produced.

7 0
3 years ago
A company began a new development project in 2017. The project reached technological feasibility on June 30, 2018, and was avail
o-na [289]

Answer:

$818,935

Explanation:

Percentage of-revenue method:

$4,000,000

($4,000,000 + 6,500,000) = $10,500,000

Hence;

$4,000,000/$10,500,000

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Amortization = 38.09% ×$2,150,000

= $818,935

Therefore the amortization of the software development costs would be $818,935

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3 years ago
The skills, abilities and other characteristics needed to perform a job are detailed in a select one:
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The skills and abilities is called A. Job description
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