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ivann1987 [24]
4 years ago
15

Hoover Inc. has current assets of $350,000 and fixed plant assets of $650,000. Current liabilities are $100,000 and long-term li

abilities are $250,000. There is $120,000 in preferred stock outstanding and the firm has issued 10,000 shares of common stock. Compute book value (net worth) per share $53.00. $75.00. $65.00. $84.00.
Business
1 answer:
frozen [14]4 years ago
8 0

Answer:

$53.00

Explanation:

The computation of book value is shown below:-

But before that we need to determine the net asset which is

Net asset = Total asset - Total liabiliites

= ($350,000 + $650,000) - ($100,000 - $250,000)

= $1,000,000 - $350,000

= $650,000

Now

Value per share= (Net asset - preference share) ÷ number of common stocks

= ($650,000 - $120,000 ) ÷ 10,000 shares

= $530,000 ÷  10,000

= $53 per share

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Which of the following is not true of P/E ratios? (Ignore option e.) a. It is calculated by dividing the stock price by EPS b. I
Ede4ka [16]

Answer:

The correct answer is letter "D": All of the above are true.

Explanation:

The Price-to-Earnings (P/E) ratio represents the relationship between a company's stock share price related to its earnings per share (EPS). The P/E ratio can give investors an idea if a company's share price is undervalued or overvalued. Besides, P/E ratios of companies with similar businesses can be compared to measure firms' performances.

5 0
3 years ago
Which of the following is concerned with the effect of exchange rate changes on individual transactions, most of which are short
castortr0y [4]

Answer: Transaction exposure

Explanation:

Transaction exposure, is a form of foreign exchange risk that is faced by the organizations that take part in international trade. It occurs when the fluctuation in exchange rate change a contracts value before it is settled.

It is concerned with the effect of exchange rate changes on individual transactions, most of which are short-term affairs that will be executed within a few weeks or months.

6 0
3 years ago
Suppose interest rates increase in the United States. We expect capital _____ to the United States and the U.S. Dollar price of
Ede4ka [16]

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3 0
3 years ago
Which of the following statements is false? A) Price determination is the key element in any market system. B) Input prices infl
anastassius [24]

Answer:

option D) While managers must understand how output prices are determined, determination of input prices is irrelevant because it is beyond the manager's control.

Explanation:

A price system is simply defined as a part of any economic system. It uses prices usually expressed in monetary form for goods and services valuation and distribution and also the factors of production.

A Pricing Manager helps to determine pricing schemes for firms products and services. The scope of work entailss co-ordination with production departments on cost of making and working with staff in marketing especially on appropriate campaigns and promotions and also they assist with pricing bargaining of customers intent.

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8 0
3 years ago
Daily demand for a product is 200 units. the production lead time is 2 days. a 1-day safety stokc is kept. how many kanban conta
SashulF [63]

Answer:6 kanban containers are needed  

Explanation: Using the formula

Number of kanban containers =( dL + S)/C

Where

Average demand, d = 200

Lead time, L = 2 days

Safety stock is 1 day, S = 200 units

Quantity in containers, C  = 100

Number of kanban containers = dL + S/C

= (200 x 2 + 200)/ 100 =400+200/100

= 600/100 = 6

Therefore 6 kanban containers are needed  

4 0
3 years ago
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