The current price of the stock = $20
<h3>What is stock?</h3>
The division of ownership of a corporation or company into shares is known as stock. Depending on the total number of shares, one share of stock represents a fractional ownership interest in the company.
<h3>What is mathematical operation?</h3>
An operation is a function in mathematics that converts zero or more input values, also known as operands, into a clearly defined output value. The operation's complexity is determined by the number of operands, sometimes referred to as arguments.
<h3>According to the given information:</h3>
The earnings per share of a stock is = $2
the current price/earnings (p/e) ratio is = 10
the current price of the stock = P/E
10 = P/2
P = 10*2
P = 20
The current price of the stock = $20
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Answer & Explanation:
Most balance sheets are arranged according to this equation:
Assets = Liabilities + Shareholders’ Equity
The equation above includes three broad buckets, or categories, of value which must be accounted for:
1. Assets
An asset is anything a company owns which holds some amount of quantifiable value, meaning that it could be liquidated and turned to cash. They are the goods and resources owned by the company.
Assets can be further broken down into current assets and noncurrent assets.
- Current assets are typically what a company expects to convert into cash within a year’s time, such as cash and cash equivalents, prepaid expenses, inventory, marketable securities, and accounts receivable.
- Noncurrent assets are long-term investments that a company does not expect to convert into cash in the short term, such as land, equipment, patents, trademarks, and intellectual property.
2. Liabilities
A liability is anything a company or organization owes to a debtor. This may refer to payroll expenses, rent and utility payments, debt payments, money owed to suppliers, taxes, or bonds payable.
As with assets, liabilities can be classified as either current liabilities or noncurrent liabilities.
- Current liabilities are typically those due within one year, which may include accounts payable and other accrued expenses.
- Noncurrent liabilities are typically those that a company doesn’t expect to repay within one year. They are usually long-term obligations, such as leases, bonds payable, or loans.
3. Shareholders’ Equity
Shareholders’ equity refers generally to the net worth of a company, and reflects the amount of money that would be left over if all assets were sold and liabilities paid. Shareholders’ equity belongs to the shareholders, whether they be private or public owners.
Just as assets must equal liabilities plus shareholders’ equity, shareholders’ equity can be depicted by this equation:
Shareholders’ Equity = Assets - Liabilities
— Courtesy of Harvard Business School
I hope this helped! :)
Answer:
The correct answer is A
Explanation:
Short term restrictive financing policy is the policy which is entails the low ratio of the current assets to the sales. This policy is grounded on the liabilities which are short term in nature.
In order to maintain the low ratio of the current assets to the sales, one needs to purchase or bought the inventory
Answer:
6.25%
Explanation:
Interest is calculate using the formula
I= P x R x T
in this case
I= interest, p= $975, r=?? ,t = 1
Therefore:
60.94 = 975 x r x 1
60.94 =975 r/100... we multiply both side by 100 to get rid of the fraction.
6094=975r
r=6094/ 975
r=6.2502
interest rate = 6.25%
