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olya-2409 [2.1K]
2 years ago
8

Gnomes R Us just paid a dividend of $1.90 per share. The company has a dividend payout ratio of 25 percent. If the PE ratio is 1

6.9 times, what is the stock price
Business
1 answer:
Verizon [17]2 years ago
8 0

Answer:

Stock price=$128.44

Explanation:

Calculation for stock price

First step is to calculate for dividend payout ratio using this formula

Dividend payout ratio=Dividend payout/Earnings

Let plug in the formula

Earnings=($1.90/0.25)

Earnings=$7.6

Now let calculate for PE ratio using this formula

PE ratio=Stock price/EPS

Let plug in the formula

Stock price=$7.6*16.9times

Stock price=$128.44

Therefore Stock price will be $128.44

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The pension plan for GL Inc. requires a contribution to the plan administrator equal to 11% of employee salaries. Salaries were
krok68 [10]

Answer:

a. credit to Cash for $63,316.

Explanation:

Given;

Pension contribution by GL Inc. percentage = 11%

Salaries for the period = $575,600

Amount to be contributed = 11% × $575,600

                                            = $ 63,316.00  

To account for this, the required journal would be

Debit      Pension Expense        $ 63,316.00

Credit     Cash account              $ 63,316.00

The right option is a. credit to Cash for $63,316.

6 0
3 years ago
McBride’s Dairy has 200 gallons of heavy cream and 600 gallons of skimmed milk and has incurred $1,000 of joint costs at the spl
Katyanochek1 [597]

Answer:

Cream $560

Explanation:

Units Selling price Sales value Percentage of sales value Allocated cost

Cream200 15    3,000    3,000/5,400 = 56%                1,000 x 56% = $560

Skimmed

milk600 4 2,400 2,400/5,400 = 44% 1,000 x 44% = $440

Total                   $5,400 100% $1,000

Therefore the  amount  of joint cost allocated to cream  is  $560

3 0
2 years ago
A chemical reactor gives a fractional conversion of only 10% of the expensive limiting reactant in the feed stream. Assuming not
slavikrds [6]

Answer:

Explanation:

A) install a SEPARATION unit on the output from the reactor and feed the unreacted reagents back to the reactor feed in a RECYCLE stream.

B) Even if one had a perfect separation unit, the 65% or reactant which went to undesirable side reaction is wasted. Recycle is not effective to help poor selectivity of the reactor.

7 0
3 years ago
What is the moral hazard​ problem?a. The problem that managers of a financial firm will take on riskier investments because they
s344n2d4d5 [400]

Moral Hazard occurs when a person increases its exposure to risk because someone else bears the the cost of those risk(Insurance companies)

Explanation:

Moral Hazard usually occurs when their is information asymmetry,the risk taking party has more information than the risk incurring party.

The financial crisis of 2008 is the best example of the Moral Hazard Problem.

The Moral Hazard Problem arises because the managers of the financial firm took over riskier investments because they believed that  the federal government will save them from the bankruptcy.

3 0
3 years ago
When will six thousand years of creation be?
goldfiish [28.3K]
Nobody really knows the real answer to this
3 0
3 years ago
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