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Elodia [21]
2 years ago
15

Brown Fashions Inc.'s December 31, 2018 balance sheet showed total common equity of $4,050,000 and 265,000 shares of stock outst

anding. During 2016, the firm had $450,000 of net income, and it paid out $100,000 as dividends. What was the book value per share at 12/31/16, assuming no common stock was either issued or retired during 2016?
Business
1 answer:
PIT_PIT [208]2 years ago
6 0

Answer: $16.60

Explanation:

The following information can be gotten from the question:

Total common equity = $4,050,000 Shares of stock outstanding = 265,000

Net Income = $450,000

Dividends = $100,000

Based on the information given, the book value per share will be calculated as:

(Total common equity + Net income - Dividends) / Outstanding shares

= ($4,050,000 + $450,000 - $100,000) / 265,000

= $4,400,000 / 265,000

= $16.60

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An information system that contains the specialized knowledge and decision rules used by experts and experienced decision makers
Artemon [7]

Answer:

decision support system.

Explanation:

A decision support system is an intelligent system that automates the organizational decision process by collecting data regarding organizational processes and logical and quantitative learning of factors that directly impact a business.

It is then configured as a very effective tool to reduce the risk inherent in the decision-making process of an expert who does not have much experience to make a decision based on their own knowledge.

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2 years ago
A writer, an illustrator, a publisher and an agent would form a
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B. Cross-functional team

Explanation:

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3 years ago
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What is a deficit?
Marizza181 [45]

Explanation:

In any single year, federal government takes in money and spends money, any year in which the government spends more than it takes out it runs a deficit.

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3 years ago
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You are considering purchasing a put option on a stock with a current price of $26. The exercise price is $28, and the price of
Goshia [24]

Answer: $4.24

Explanation:

According to the Put-Call Parity, the value would be expressed by;

Put Price = Call price - Stock price + Exercise price *e^-(risk free rate *T)

T is 90 days out of 365 so = 90/365

= 2.65 - 26 + 28 * 2.71 ^ (-0.06 * 90/365)

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4 0
3 years ago
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GenX has a target capital structure of 40 percent common stock, 5 percent preferred stock, and 55 percent debt. Its cost of equi
AVprozaik [17]

Answer:

12.085 %

Explanation:

WACC = Cost of Equity x Weight of Equity + Cost of Preference Stock x Weight of Preference Stock + Cost of Debt x Weight of Debt

Remember to use the after tax cost of debt :

after tax cost of debt = interest x ( 1 - tax rate)

                                   = 8.00 % x (1 - 0.35)

                                   = 5.20 %

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thus

the firm's WACC given a tax rate of 35 percent is 12.085 %

6 0
3 years ago
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