Answer:
a. Gross profit rate = Gross profit / sales
= <u> $710,000 * 100</u>
$1,230,000
= 57.72%
b. <u>Supreme Operating Income </u>
Gross Profit $710,000
Operating expenses <u>(440,000)</u>
Operating Profit <u> 270,000</u>
<u />
c. Return on Asset = Return/ Average Asset
= <u>$390,000 * 100 </u>
$4,000,000
= 9.75%
d. Return on equity = Return / Average equity
= <u>$390,000 * 100 </u>
$2,400,000
= 16.25%
e. Price-earnings ratio = Market price per share / earnings per share
= $88/ $4
= 22
Explanation:
Computation of Gross profit
$'000
Net Sales 1,230
Cost of goods sold <u>(520)</u>
Gross Profit 710
Answer:
correct option is b. Location isn’t yet open
Explanation:
solution
third potential reason for disapproval in verification process if location is not yet open because Google allow you for adding all business detail before you open particular verification
so that If business has not yet open then verification will be false
and 1 thing we required that we can postpone verification date otherwise it will show false information google
So first you sign in Google business and invite people
and set open date as real and after that choose for verify
so here correct option is b. Location is not yet open
Answer:
$1,729,098
Explanation:
Given that,
EBIT = $377,000
No debt.
Cost of equity = 13.3 percent
Tax rate = 39 percent
Value of issuing bonds at par = $2.7 million
Coupon rate = 6.5%
Therefore,
Unlevered value of the firm:
= [EBIT × (1 - Tax rate)] ÷ Cost of equity
= [$377,000 × (1 - 0.39)] ÷ 0.133
= $229,970 ÷ 0.133
= $1,729,098
Answer:
$49.01 per Share
Explanation:
We can find the value of the unit share of company that will be dissolved at the end of year 2 by using the following formula:
<u>Current Price per Share = Value of Firm Today (Step1) / Number of Shares</u>
= $1,862,345 / 38,000 shares
= $49.01 per Share
<u></u>
<u>Step 1: Find the value of the firm in today's price by using the discounting technique</u>
Value of Firm Today = Cash Flow for Year 1 / (1+r)^1 + Cash Flow for Year 2 / (1+r)^2
= $860,000 / (1 + 11%)^1 + $1,340,000 / (1 + 11%)^2
= $774,774 + $1,087,571
= $1,862,345
