The
price-earnings ratio (P/E ratio) is the measure of a company’s current stock price
in relation to its per stock earnings. In the sample given, P/E Ratio of Favorita
candy's stock is 18% and is expected to earn $4.00 per share this year. The price
of the stock is calculated as follows:
Market Value per Stock
/ Earnings per Stock = P/E ratio
Let X the price value of
stock in $
Earnings per stock = $4
P/E Ratio = 18%
X/4 = 18
X = 18X 4
<span>X = 72</span>
Answer:
66.67%
Explanation:
A firm has an EPS of $12
The dividend paid is $4
The first step is to calculate the payout
= 4/12
= 0.3333×100
= 33.33
Therefore the Plowback ratio can be calculated as follows
= 1-33.33%
= 0.667×100
= 66.67%
Hence the Plowback ratio is 66.67%
I believe the answer is C. my beau is in construction, so I know for a fact that you don't have to have a degree
Answer:
For every dollar Tesva Systems puts to work, the company realizes $6.00 of sales.
Explanation:
Answer and Explanation:
a. The journal entries are shown below:
On May 10
Merchandise inventory Dr $75,924 ($76,800 × 0.98)
To Account payable $75,924
(Being merchandise inventory is purchased on account)
For recording this we debited the merchandise inventory as it increased the assets and credited the account payable as it also increased the liabilities
On May 18
Account payable Dr
To Cash
(Being the cash paid is recorded)
For recording this we debited the account payable as it decreased the liabilities and credited the cash as it reduced the assets
2. On June 1
Equipment Dr $94,800
To cash Dr $33,600
To 9% Note payable $61,200
(Being the equipment is purchased on cash and note payable)
For recording this we debited the equipment as it increased the assets and credited the account payable and cash as it also increased the liabilities and reduced the assets
3. On Sep 30
Cash Dr $180,000
Discount on note payable $20,000
To Note payable $200,000
(Being the interest bearing note is recorded)
For recording this we debited the cash as it increased the assets and credited the note payable as it also increased the liabilities and the difference is debited to note payable