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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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Cash balance, September 1 (from a summer job) $7,560
neonofarm [45]

Answer:

Katherine Malloy

Personal Cash Budget for September, October, November, and December:

                                       September   October   November   December

Balance                             $7,560      $2,960     $3,060        $3,160

Apartment deposit return                                                            500

Earnings (net of taxes)          940           940           940             940

Borrowing                                                                                      340

Total Cash Receipts        $8,500      $3,900     $4,000        $4,940

Season football tickets          100

Additional entertainment     260           260           260            260

Semester Tuition                4,100                                              4,100

Rent                                       370           370            370             370

Food                                      210            210             210             210

Apartment deposit               500

Total cash payment        $5,540        $840          $840       $4,940

Balance                           $2,960     $3,060       $3,160            $0

Explanation:

Katherine Malloy's cash budgets for the months of September, October, November, and December give some snapshots of her cash receipts and payments, including the planned borrowing of no less than $340 that she must arrange in December in order to pay for her spring semester tuition on December 31.   From the budget, she gets a clearer picture of her cash needs, receipts and expenses.  She is comfortable from September till the end of the year.  But, Katherine must arrange for some cash receipts, either in student loan or support or get another part-time work to increase her income, to enable settle her tuition in December.

4 0
3 years ago
If the government tightens up on drug dealers and raises the costs of dealing illegal drugs, then the drug addicts' dollar expen
pentagon [3]

Answer:

D

Explanation:

I'm sure the question was geared toward teaching you the difference between elastic and inelastic.

If your demand for a product does not change even if the price goes up, then the demand is considered to be inelastic.

However, the question posed to get this teaching point across made the answer almost impossible.  A drug addict's demand can drastically change from day to day depending on how readily that person can get hold of the money needed.  One day money may not be a problem so the expenditure will increase because their demand is price-inelastic.  The very next day the person may not be able to find any money at all.  Therefore, the expenditure will decrease because their demand is price-elastic

4 0
2 years ago
Is an atom with a nucleus of 31 protons and 31 neutrons a stable isotope?
Liula [17]
<span>No. Since the atom has 31 protons, that means it's an isotope of gallium. Looking up gallium, you can determine that in nature it's composed of the two stable isotopes, gallium-69 and gallium-71, which have 38 and 40 neutrons respectively. Looking further, you will find that gallium-62 has a half life of 116.18 milliseconds which means it's quite unstable.</span>
6 0
3 years ago
The principal purpose of a statement of cash flows is to measure the profitability of a business that maintains its accounting r
Alexus [3.1K]

Answer:

False

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This is False because cash flows are also made for businesses that accounting records on the accrual basis rather than cash basis.

The cash flow is computed both by Direct and Indirect methods.

In indirect method of Cash flow Net income is computed using accrual income which recognizes revenues when earned and expenses when incurred.

5 0
3 years ago
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If happiness was money, what would your job be?​
lawyer [7]

Answer:

Being appreciated by people.

7 0
3 years ago
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