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baherus [9]
3 years ago
11

Which one of the following statements about book value per share is most correct? Market price per common share usually approxim

ates book value per common share. Book value per common share is based on past transactions whereas the market price of a share of stock mainly reflects what investors expect to happen in the future. A market price per common share that is greater than book value per common share is an indication of an overvalued stock. Book value per common share is the amount that would be paid to stockholders if the company were sold to another company.
Business
1 answer:
Rom4ik [11]3 years ago
4 0

Answer:

Book value per common share is the amount that would be paid to stockholders if the company was sold to another company.

Explanation:

Book value per common share is a process by which the per-share value of the company is calculated. The calculation is done based on the common equity of the shareholders of the company. In case when the company dissolves, the book value per common share helps in the calculation of the value of the assets left for the shareholders after the payment of the debtors and after the liquidation of the assets.

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One joint of marijuana impairs a person more than having a blood alcohol content of _____ %.
Yanka [14]
Answer: 0.8%


hope this helps
4 0
3 years ago
Determine how the following scenarios affect the firm's cash position. Identify whether the scenario describes a financing, inve
pochemuha

Answer and Explanation:

The classification is as follows:

1. Dividend of preferred stock paid - Financing activity

2. Purchase of the property for a future factory - Investing activity

3. Issuance of the common stock shares  -  Financing activity

4.Rise in  accrued liabilities - Operating activity

5. Sell some old equipment - Investing activity

The following are expected to increase in the cash flow

1.  Issuance of the common stock shares

2. Rise in  accrued liabilities

3. Sell some old equipment

Increase inventory holdings - Operating activity

Sell a tract of land it has held for years - Investing activity

4 0
3 years ago
Required information Use the following information for the Exercises below. Skip to question [The following information applies
Lyrx [107]

Answer:

Follows are the solution to this question:

Explanation:

In point A:

The estimated amount of uncollectible allowance =\$ \  635,000 \times 4 \% = \$ \ 2,540,000

In point B                                    Journal

Titles and descriptions of accounts         Debit          Credit         Calculation    

Expenditure on bad debts                \$ \ 2,526,700

Doubted debt allowance                          \$ \ 2,526,700 \  \   (\$ \ 2,540,000 - \$ \ 13,300)

(Bad Debts Expense recorded)  

In point C                                         Journal

Titles and descriptions of accounts         Debit          Credit         Calculation    

Expenditure on bad debts               \$ \ 2,553, 300

Doubted debt allowance                        \$ \ 2,553, 300     \ \ \ \ (\$ \ 2,540,000 + \$ \ 13,300)    

(Bad Debts Expense recorded)  

5 0
3 years ago
"Other things equal, when the price of a good rises, the quantity demanded of the good falls, and when the price falls, the quan
Daniel [21]

Answer:

d. All of the above are correct

Explanation:

Demand refers to the quantities of a product that buyers are willing to purchase at a given price over time. The relationship between demand and price is explained in the law of demand. The law asserts that everything else remaining constant, the demand for a product is indirectly related to its price.

The demand curve illustrates the relationship between price and demand for a service or product. The curve is downward sloping showing how the quantity demanded changes with changes in price. Most goods will behave as per the demand curve. However, inferior goods tend to behave differently. An increase in income reduces the demand for an inferior product.

6 0
3 years ago
On January 1, Smith Industries leased equipment to a customer for a four-year period, at which time possession of the leased ass
KiRa [710]

Answer:

The amount of the annual lease payments is $98,124.

Explanation:

This can be calculated using the formula for calculating loan amortization as follows:

P = (A * (r * (1 + r)^n)) / (((1+r)^n) - 1) .................................... (1)

Where,

P = Annual lease payments = ?

A = Amount to be recovered through periodic lease payments = Equipment cost - Residual value = $425,000 - $100,000 = $325,000

r = interest rate = 8%, or 0.08

n = Number of years of lease term  = 4

Substituting all the figures into equation (1), we have:

P = ($325,000 * (0.08 * (1 + 0.08)^4)) / (((1+0.08)^4) - 1)

P = $98,124.2614475627

Rounding to the nearest whole dollar as required, we have:

P = $98,124

Therefore, the amount of the annual lease payments is $98,124.

4 0
3 years ago
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