1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
taurus [48]
2 years ago
9

Phelps, Inc. had assets of $87,938, liabilities of $19,174, and 13,190 shares of outstanding common stock at December 31, 2017.

Net income for 2017 was $9,761. The company had assets of $103,319, liabilities of $23,003, 11,527 shares of outstanding common stock, and its stock was trading at a price of $10 per share at December 31, 2018. Net income for 2018 was $10,719. Required: Calculate EPS for 2018. Calculate ROE for 2018. Calculate the Price/Earnings Ratio for 2018.
Business
1 answer:
DochEvi [55]2 years ago
8 0

Answer:

Phelps, Inc.

EPS for 2018                                 $0.93

ROE for 2018                                 13.3%

Price/Earnings Ratio for 2018       10.75

Explanation:

a) Data and Calculations:

                             December 31, 2017     December 31, 2018

Assets                             $87,938                      $103,319

Liabilities                            19,174                         23,003

Equity                             $68,764                       $80,316

Outstanding common

 stock                                13,190                         11,527

Stock price per share                                            $10

Net income                      $9,761                       $10,719

EPS for 2018                                                       $0.93 ($10,719/11,527)

ROE for 2018                                                      13.3% ($10,719/$80,316*100)

Price/Earnings Ratio for 2018                            10.75 ($10/$0.93)

EPS (Earnings Per Share) = Net income/Number of outstanding shares

ROE (Return on Equity) = Net income/Equity * 100

Price/Earnings Ratio = Stock price/EPS

You might be interested in
The attitude adopted by Calvin Coolidge that government should play a small role in business affairs is known as what?
nydimaria [60]

Answer:

3) laissez-faire

Explanation:

Laissez-faire is a French expression that means to let us do, or applied to economics, let the economy self regulate itself. It was not a doctrine developed by Adam Smith, but rather by French economists who supported the idea of no government intervention in the economy.

President Coolidge believed that the government should not interfere with businesses and that businesses themselves were able to create prosperity for the nation.

3 0
3 years ago
Gavina places products in several of the marketing channel categories. two examples of this are placement in​ mcdonald's in​ a(n
o-na [289]
<span>Gavina places products in several of the marketing channel categories. Two examples of this are placement in​ mcdonald's in​ a time utility category and placement in costco in the​ place utility category.

McDonald's falls under the time utility category because they streamline their services by making the ordering process to leaving with food as fast as possible. Those people wanting to save time and/or get the most value for their time often pick a fast food chain. 
Cosco is an ample of place utility because they group together large quantities of </span>items that many consumers want into one place. By doing this, they allow the buyer more options in one place making items more easily accessible. 
5 0
3 years ago
The accounting equation is assets = liabilities + owner’s equity.
Anon25 [30]

Answer:

A. Why must this equation always balance?

It must balance because all the assets that firm controls have been acquired either by external funding (liabilities), or by internal funding (owner's equity).

This also explains the relationship between economic resources and claims to economic resources. Economic resources (assets) are either the claim of an external agent that has to be paid in the future (liability), or the claim of one of the company's owners who could in theory dissolve the company and take possession of the company's assets (equity).

B. What transactions increase or decrease owner’s equity?

Profits increase owner's equity, as well as capita contributions, whether in the form of stocks, equipment, or other financial instruments.

Costs and expenses are substracted from revenues, and therefore they reduce profits, and owner's equity.

C. How does net income or loss affect owner’s equity?

A net income profit increases owner's equity, while a net income loss decreases owner's equity.

D. Please give an example of a transaction, applied to the accounting equation.

ABC corporation issues 1,000 common stocks with par value of $5, and a price per stock of $7. The journal entry is:

Account                                    Debit                Credit

Cash                                        $7,000

Common Stock                                                 $5,000

Additional Paid-In Capital                                $2,000

In this transaction, cash is an asset and common stock and additional paid-in capital are part of the stockholder's equity. The corporation does not have any liabilities yet.

ABC Corp accounting equation = Assets = Liabilities + Stockholder's equity

                                                     = $7,000 = 0 + $7,000

As can be seen, the accounting equation is true even in the earliest stages of the corporation.

6 0
3 years ago
Catherine works for BluCorp, which has an employee handbook stating that employees will be terminated for good cause. Catherine'
barxatty [35]

Answer:

b. contract exception to employment at will.

Explanation:

The implied contract exception to employment law is available in at-will employment. BluCorp may be found liable for breach of contract firing Catherin due to be violating an implied employment contract.

Implied employment contracts are seen when there are employer's personnel policies stating that an employee will not be fired except for good and fair cause.

7 0
3 years ago
An oil refinery is located on the north bank of a straight river that is 3km wide. A pipeline is to be constructed from the refi
Mariulka [41]

Answer:

$6,598,076.21

Explanation:

<h2>THE KEY IS TO FIND OUT THE COST FUNCTION, the calculations are very easy!!!</h2><h2></h2><h3>In order to find the cost function, take a look at the drawing attached. </h3>

We can see the river (sort of) that is 3 km wide and the storage tanks on the other side of the river 8 km apart.

<h3 />

Laying pipes under (across) the river costs 1,000,000 the km & laying pipes over land costs 500,000 per km.

<h3 /><h3>So basically the cost function is 1,000,000 multiplied by something plus 500,000 multiplied by another something.</h3><h3 />

The distance across the river can be found by using Pythagoras Theorem. A side is 3 km the other is unknown, so we call it X. And it is equal to:

\sqrt{3^{2} +x^{2}}=\\\sqrt{9 +x^{2}}

And we multiply it by 1,000,000; the cost of laying pipe under the river, the we get:

1000000\sqrt{9+x^{2}

The distance over the land is (8-x), as we can see in the drawing. So we multiply it by its cost, 500,000. And we get 500,000(8-x).

So the cost function f(x) would be:

f(x)=1000000\sqrt{9+x^{2}} + 500000(8-x)

<h2>From here, we just have to differentiate and the derivative found must be equal to zero in order to minimize cost. </h2><h3>The value of x when the derivative is zero is plugged in the original function to get the cost.</h3><h3 /><h2>LET'S DO THIS</h2>

f(x)=1000000\sqrt{9+x^{2}} + 500000(8-x)\\f(x)=1000000(9+x^{2})^{1/2}+4000000-500000x\\f'(x)=\frac{1}{2} 1000000(9+x^{2})^{-1/2}(2x)-500000\\\\f'(x)=\frac{1000000x}{\sqrt{9+x^2}}  - 500000

<h2>f'(x)=0</h2>

f'(x)=\frac{1000000x}{\sqrt{9+x^2}}  - 500000=0\\\frac{1000000x}{\sqrt{9+x^2}}  = 500000\\\frac{2x}{\sqrt{9+x^2}}  = 1\\2x={\sqrt{9+x^2}}\\4x^2=9+x^2\\3x^2=9\\x^2=3\\x=\sqrt{3} \\

And we plug square root of 3 in the original cost function  ad we get

f(\sqrt{3} )=1000000\sqrt{9+x^{2}} + 500000(8-x)\\f(\sqrt{3})=1000000\sqrt{9+(\sqrt{3} )^{2}} + 500000(8-(\sqrt{3}))\\f(\sqrt{3})=1000000\sqrt{9+3} + 500000(8-(\sqrt{3}))\\f(\sqrt{3})=1000000\sqrt{12}+500000(6.27)\\f(\sqrt{3})=1000000(3.46)+500000(6.27)\\f(\sqrt{3})=3464101.62+3133974.60\\f(\sqrt{3})=6598076.21\\

<h2>so the minimal cost is $6,598,076.21</h2><h2 /><h3 />

6 0
3 years ago
Other questions:
  • What is important to know about yourself when making a career choice?
    10·1 answer
  • Using a General Journal Math Quiz
    7·1 answer
  • As of December 31, Year 2, Moss Company had total cash of $195,000, notes payable of $90,500, and common stock of $84,500. Durin
    7·1 answer
  • Country 1 has a gross domestic product (GDP) of $75 billion. The country has a large public sector, which accounts for $25 billi
    10·1 answer
  • KeyLine, Inc., engages primarily in the manufacture of touch-sensitive LCD monitors. The company prices its products so that it
    8·1 answer
  • Jacqueline, a brilliant new ph.d. in economics, has turned down many job offers because she hopes eventually to teach at one of
    8·1 answer
  • Explain the importance of understanding how teams work together to achieve the same goal​
    7·1 answer
  • A new pizza restaurant is opening in town. The owners of this restaurant decide to place an advertisement in the town newspaper
    5·1 answer
  • What is Walmart's cash ratio for the year of 2018 (round it to 3 numbers after the decimal point -&gt; 0.112)
    13·1 answer
  • edna is the leading brain surgeon in the united states. she enters into a contract to perform a difficult brain operation on ben
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!