Answer:
True
Explanation:
The principal purpose of building a business is to make profits. A business must provide solutions to particular needs and wants in the community to attract customers. Different entrepreneurs will offer alternative or similar solutions to a specific situation.
Anyone starting a business will target a particular set of customers. He or she must be ready to complete for those customers with other like-minded entrepreneurs. Competition is good in business as it makes entrepreneurs innovate on the best ways to serve their customers. It also gives customers alternatives.
Answer:
Option (d) 7 times
Explanation:
Data provided in the question:
Net income = $250,000
Dividends paid to common stockholders = $50,000
Common stock outstanding = 50,000
Selling price of the common stocks = $35
Now,
The price-earnings ratio is calculated as:
⇒ ( Stock price ) ÷ ( Earnings per share )
also,
Earnings per share = ( Net income ) ÷ ( common stock outstanding )
= $250,000 ÷ 50,000
= $5
or
Price-earnings ratio = $35 ÷ $5
or
Price-earnings ratio = 7 times
Option (d) 7 times
Answer:
a.$7.43 per machine hour
Explanation:
The computation of the single plant wide rate is shown below:
Single plant wide rate = Total overhead cost ÷ Machine hours
where,
Total overhead cost = $84,000 + $72,000 = $156,000
And, the machine hours is
= 1,000 units × 5 + 2,000 units × 8
= 5,000 + 16,000
= 21,000 machine hours
So, the single plant wide rate is
= $156,000 ÷ 21,000 machine hours
= $7.43 per machine hour
Answer:
8.54%
Explanation:
Current Index value:
= [current total market value of index stocks] ÷ [Base year total market value of index stocks] × Base year index value
= [(69 × 35000) + (122 × 32500)] ÷ [(63 × 35000) + (113 × 32500)] × 100
= 108.54
Return in percent:
= ( 108.54 - 100 ) ÷ 100
= 8.54%
Therefore, the value-weighted return for the index is 8.54%.
