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lions [1.4K]
3 years ago
9

As a stockholder in Bozo Oil Company, you receive its annual report. In the financial statements, the firm has reported assets o

f $15 million, liabilities of $9 million, after-tax earnings of $3 million, and 761,000 outstanding shares of common stock.
Required:
a. Calculate the earnings per share of Bozo Oils common stock. (Round your answer to 2 decimal places.)
b. Assuming a share of Bozo Oil's common stock has a market value of $40, What is the firm's price-earnings ratio?. (Round your intermediate calculation to 2 decimal places and final answer to the nearest whole number.)
c. Calculate the book value of a share of Bozo Oil's common stock. (Round your answer to 2 decimal places)
Business
1 answer:
fgiga [73]3 years ago
7 0

Answer:

See below

Explanation:

a. Earnings per share

= After tax earnings / Number of common shares outstanding

= $3,000,000 / 761,000

= $3.9 per share

b. Assuming that a share of Bozo Oil's company has a market value of $40, then, the firm's price earning ratio would be:

= Common stock market value / Earnings per share

= $40 / $3.9

= 10.26

c. The book value of a share of Bozo Oil's common stock

Book value = (Assets - Liabilities) / Number of shares outstanding

= ($15,000,000 - $9,000,000) / 761,000

= $6,000,000 / 751,000

= $7.88

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Madison Company's perpetual inventory records indicate that $875,300 of merchandise should be on hand on October 31. The physica
Trava [24]

Answer:

Madison Company's Journal entry

Dec. 31

Dr Cost of Merchandise Sold 93,400

($875,300-$781,900)

Cr Merchandise Inventory 93,400

Explanation:

If the perpetual inventory records $875,300 of merchandise while the physical inventory indicates $781,900 which means we have to deduct $781,900 from $875,300 which made us to arrived at $93,400 as Debited Cost of Merchandise Sold and as Credited Merchandise Inventory .

4 0
3 years ago
Jesse wants my thoughts on how we can use prototyping for tims. she also wants me to prepare a system requirements document and
svp [43]

When prototyping new products, most people will want a presentation on what the prototype will look like, the functions, the benefits, how it differs from previous products or other companies' products and the pricing. A management presentation is important because it should help break down all the information needed before approval of the new product is approved.

4 0
3 years ago
A small publishing company is planning to publish a new book. The production costs will include one-time fixed costs (such as ed
patriot [66]

The number of books that will be produced such that the costs from the two methods be the same is 4668 units.

From the complete question, the total cost of the first equation will be:

= 8.25x + 65054

The total cost for the second equation will be:

= 19.50x + 12539

Then, we'll equate both equations together and this will be:

8.25x + 65054 = 19.50x + 12539

Collect like terms

19.50x - 8.25x = 65054 - 12539

11.25x = 52515

Divide both side by 11.25

11.25x/11.25 = 52515/11.25

x = 4668 units.

Therefore, the breakeven unit will be 4668 units.

Read related link on:

brainly.com/question/25265523

5 0
3 years ago
Read 2 more answers
Choose the correct statement.
AfilCa [17]

Answer:

D. The outlet substitution bias injects an upward bias into the CPI

Explanation:

4 0
3 years ago
Assume there are two countries: South Korea and the United States. South Korea grows at 4% and the United States grows at 1%. Fo
alisha [4.7K]

Answer:

The US income will be $12,201 and South Korea's income will be $21,911. US income will grow by multiple of 1.2 while South Korea's GDP will grow by multiples of 2.19.

Explanation:

Initial income of both the countries is $10,000.

Growth rate of South Korea is 4%.

Growth rate of US is 1%.

In 20 years, South Korea's income will be,

=Initial income*(1+growth rate)^{n}

=$10,000*(1+0.04)^{20}

=$10,000*2.1911

=$21,911

Similarly, we can find US income.

=Initial income*(1+growth rate)^{n}

=$10,000*(1+0.01)^{20}

=$10,000*1.2201

=$12,201

So, South Korea's income is $21,911 while US's income is $12,201.

South Korea's income grows by the multiples of 2.1911. While, US's income grows by the multiples of 1.2201

4 0
3 years ago
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