Answer:
Last paragraph
Explanation:
Finally, Jeremey has also divided the problem into smaller parts, such as production costs, overheads, downtime expense, repair expenditure, and so on.
Answer:
The book value per share and earnings per share is $2.1809 and $1.025 respectively.
Explanation:
For computing the book value per share, we have to used the market to book ratio formula which is shown below:
Market to book ratio = Market price per share ÷ book value per share
9.4 times = $20.50 ÷ book value per share
So, book value per share = $20.50 ÷ 9.4 times
= $2.1809
Now, the earning per share is calculated by using a PE ratio which is displayed below:
PE ratio = Share price ÷ Earning per share
20 times = $20.50 ÷ Earning per share
So, earning per share = $20.50 ÷ 20 times
= $1.025
Hence, the book value per share and earnings per share is $2.1809 and $1.025 respectively.
Answer:
The maximum amount that the lender will be willing to provide to the borrower is $9,006.
Explanation:
Fixed payment for a specified period is know as the annuity. We will use the formula of present value of present value of annuity payment.
APV = C x [ ( 1 - ( 1 + i )^-n ) / i ]
C = Monthly payment = $800
Interest rate =i 8% = 0.08
n = number of years = 30 years
APV = $800 x [ ( 1 - ( 1 + 0.08 )^-30)/0.08 ]
APV = $800 x 11.2578
APV = $9,006
So, The maximum amount that the lender will be willing to provide to the borrower is $9,006.
Answer:
Option B $128700
Explanation:
The amortization can be calculated using the following formula:
Amortization for the Year = Assets Value * (Turquoise Extracted / Total Turquoise)
Amortization for the Year = $429,000 * (1950/6,500) = $128,700
The method used is depletioning method because it seems that the company will extract all of the turquoise within the 3.33 year time (6500/1950), which is within the 5 years duration for which the right to extract the turquoise is purchaseed. Otherwise the straigth line method would had be used here.