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Yuliya22 [10]
4 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]4 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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2 years ago
A large computer manufacturer forbids its executives and managers from serving as directors or officers for Intel Corporation or
posledela

Answer:

Conflict of interest(COI)

Explanation:

The large computer manufacturing company is trying to prevent a conflict of interest.

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Conflict of interest can also involve an organization. It could be a case in which an individual or organization performs two different roles simultaneously, and performing an obligation could involve working against another.

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3 years ago
Suppose a firm currently produces 325 units of output per day with 15 workers. the firm is able to produce 340 units of output w
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MPL implies the extra output level, that is being produced by hiring an additional unit of labor.

So when the 16th worker is hired, the output level rises by = (340-325)

= 15 units.

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2 years ago
Blue Spruce Corp. accumulates the following cost and net realizable value data at December 31. Inventory Categories Cost Data Ne
Kruka [31]

Answer:

<u>Company's total inventory</u> 30,850

Camaras: 10,960

Camcorders: 8,850

DVDs: 11,040

Explanation:

<u>Camaras: </u>

cost: 10,960

net realizable value: 12,060

<u>Camcorders: </u>

cost: 8,850

net realizable value: 9,170

<u>DVDs: </u>

cost: 12,100

net realizable value: 11,040

<u>Company's total inventory</u>

10,960 + 8,850 + 11,040 = 30,850

We must pick between the historic cost or the net realizable value the lower. The reasoning behind this is the conservatism accounting principle to keep the assets valued at minimum.

3 0
3 years ago
ou need to have $25,000 for a down payment on a house 5 in years. If you can earn an annual interest rate of 4.7 percent, how mu
artcher [175]

Answer:

$19,870.39

Explanation:

To find the amount that you will have to deposit today, you have to use the formula to calculate the present value:

PV=FV/(1+i)^n, where

PV= Present value

FV= Future value=$25,000

i= interest rate=4.7%

n= number of periods of time= 5 years

PV=25,000/(1+0.047)^n

PV=25,000/(1.047)^5

PV=19,870.39

According to this, the answer is that you will have to deposit today $19,870.39.

7 0
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