Answer:
The book value per share is $7 and there are a total of 6 million shares which means in order to find the equity value of the company we need to multiply the book value per share and the total number of shares.
So the value of equity is $42 million
The debt of the company is 70 million plus 50 million = $120 million
The total capital of the company is 120 million plus 42 million = $162 million
The Equity/Value = 42/162=0.2592=25.92%
The Debt/Value= 120/162=0.7407= 74.07%
Explanation:
Answer:
True
Explanation:
Brand positioning refers to creating and occupying a place in a prospective customer's mind with respect to a brand. It refers to a brand image created in the minds of prospective customers whenever they think of a brand.
For instance, when a customer thinks of Lacoste, it reminds him of the quality associated with it along with it's French connect.
Brand positioning helps an enterprise distinguish it's own brand from those of the competitors. Also, such an exercise reveals uniqueness of the brand i.e attributes specific of such a brand.
The questions to be answered before making a purchase are
the following;
<span>·
</span>What problems are most likely to happen? – an individual
should think of the problems that may arise based on his or her decisions
<span>·
</span>What could go wrong? – the individual should not
only be concerned with the purchase but what might happen after
<span>·
</span>What problems could be most damaging? – choices are
made available and to think about in order to think whether your choices could
cause problems or harm
Answer:
b. debiting Accounts Receivable and crediting Sales.
Explanation:
When merchandise is sold and the perpetual system of inventory is used, the journal entry for a sale would include debiting Accounts Receivable and crediting Sales.
A perpetual system of inventory can be defined as a method of financial accounting, which involves the updating informations about an inventory on a continuous basis (in real-time) as the sales or purchases are being made by the customers, through the use of enterprise management software applications and a digitized point-of-sale equipment.
Under a perpetual system of inventory, updates of the journal entry for cost of goods sold or received would include debiting accounts receivable and crediting sales immediately as it is being made or happening. The advantage of the perpetual system of inventory over the periodic system of inventory is that, it ensures the inventory account balance is always accurate provided there are no spoilage, theft etc.
In Accounting, to record a journal entry for a sale on account, the account receivable would be debited because it is an asset and shall be increased with debits while crediting the sales account for the amount being paid by the customer.
Answer:
5.80%
Explanation:
Computation of after-tax return
Based on the information given the total before-tax income will be $3.
Since the firm is in the 30% tax bracket this means that the taxable income will be calculated as:
Taxable income =(0.30 ×$3)
Taxable income = $0.9
The next step is to calculate for the Taxes
The taxes will be = (0.30 ×$0.9) = $0.27
Now let calculate for the After-tax income
After-tax income = ($3 - $0.27) = 2.73
The last step is to find the After-tax rate of return using this formula
After-tax rate of return =After-tax income/Share of preferred stock
Let plug in the formula
After-tax rate of return = ($2.73/$47)
After-tax rate of return=0.058×100
After-tax rate of return = 5.80%
Therefore After-tax rate of return will be 5.80%
