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jonny [76]
2 years ago
8

Maytag Company earns $4.80 per share. Today the stock is trading at $59.25. The company pays an annual dividend of $1.40. a. Cal

culate the price-earnings ratio
Business
1 answer:
shepuryov [24]2 years ago
4 0

Answer:

A. Price-earnings ratio= 12.34

B. Yield on the stock = 2.36%

Explanation:

A. Calculation for the price-earnings ratio using this formula

Price-earnings ratio=Market Price Per Share / Earnings Per share

Let plug in the formula

Price-earnings ratio=59.25 / 4.80

Price-earnings ratio= 12.34

B. Calculation for the yield on the stock using this formula

Yield on the stock=Annual dividends per share / market price per share

Let plug in the formula

Yield on the stock=1.40 / 59.25

Yield on the stock = 2.36%

Therefore the Price-earnings ratio is 12.34 while the Yield on the stock is 2.36%

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Indicate where each item should be presented in the statement of cash flows (indirect method) using these four major classificat
saw5 [17]

Answer:

a.  Payment of interest on notes payable - Operating Activity

b.  Exchange of land for patent - Non Cash investing activity

c.  Sale of building at book value - Investing Activity

d.  Payment of dividends - Financing Activity

e.  Depreciation - Operating Activity

f.   Receipt of interest on notes receivable - Operating Activity

g.  Issuance of Capital Stock - Financing Activity

h.  Amortization of patent - Operating Activity

i.   Issuance of bonds for land - Non Cash investing activity

j.   Purchase of land - Investing Activity

3 0
3 years ago
.Daniel’s team had to analyze the last two vendors across four categories. Which basic characteristic groups of the potential pr
ziro4ka [17]

Answer:

Daniel’s team had to decide the vendor on the following attributes that should be analyzed:  

  1. Innovation :- Credit Issue Group is a money related assistance organization and henceforth the seller needs to have a decent mechanical base to furnish with organization with required administrations on schedule and best in quality.  
  2. Exclusivity: Considering the significance of the administrations, organization may take a gander at the restrictiveness of the administrations that merchant can offer to Credit Issue.  
  3. Complimentary Services offering:- To look if seller has some other contributions to make to the customer that might be complimentary with the fundamental administrations advertised. This can save money on schedule and authoritative work.  
  4. Support:- What support would vendor be able to offer to the organization alongside giving the essential administrations.  
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8 0
3 years ago
Which of the following is not an form of money that was traded
Semmy [17]

Answer:

(D) because you cannot sell shells.

8 0
2 years ago
Using the information below, calculate gross profit for the period:    Beginning Raw Materials Inventory$25,000 Ending Raw Mater
nevsk [136]

Answer:

Gross Profit                  714,000

Explanation:

Gross Proft: is the diference between the sales revenue and the cost of the goods sold.

Sales revenue          1,254,000

Cost of Goods Sold    (540,000)

Gross Profit                  714,000

note: All the other account and values are irrelevant to determinate the gross profit.

<u>Other way to calculate gross profit:</u>

(sale price per unit - cost per unit) x unit sold

5 0
3 years ago
Bedekar, Inc., has an issue of preferred stock outstanding that pays a $3.40 dividend every year in perpetuity. If this issue cu
Ainat [17]

Answer:

i=4.84%

Explanation:

the key to answer this question, is to remember the model of return for a perpeuity dividend calculation:

Value=\frac{1}{i-k}

where value is the current stock price, i is the dividend yield and k is the growth rate, so applying to this particular case we have

k=3.4/91

k=3.74%

and solving i for the previous formula:

91=\frac{1}{i-0.0374}

0.01098={i-0.0374}

i=4.84\%

8 0
3 years ago
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