If I'm not mistaken the answer is B - demographics
Answer:
0.88 year and 1 year
Explanation:
The computation of the payback period for Payback period for Project A and Project B is shown below:
Payback period = Initial investment ÷ Net cash flow
For Project A
Initial investment = $22,000
Year 1 = $25,000
Since the initial investment is less than the annual cash flows so the payback period is
= 0 years + ($22,000 ÷ $25,000)
= 0.88 years
For Project B
Initial investment = $22,000
Year 1 = $22,000
So, the payback period is
= $22,000 ÷ $22,000
= 1 year
Answer:
Explanation:
(a) The computation of the cost of goods sold is shown below:
= Beginning inventory + Purchase of new merchandise - ending inventory
= $4,000 + $22,000 - $4,500
= $21,500
(b) In the income statement, the total revenues and the total expenses are recorded.
If the total revenues are more than the total expenditure then the company earns net income
And, If the total revenues are less than the total expenditure then the company have a net loss
This net income or net loss would reflect in the statement of the retained earning account.
The preparation of the income statement is presented in the spreadsheet. Kindly find the attachment below:
After the dividend, the firm's:
a. book value per share will be $6.31.
b. price-earnings ratio will be 13.88.
c. shareholder value per share will be $18.60.
d. stock price will be $19.00.
e. earnings per share will be $.94.
The answer is : b
We calculate the ex-dividend price of a share on the day dividend is paid as follows:
Ex-dividend Price = Share price before dividend - dividend paid per share
Ex-dividend price = $18.6 ($19 - $0.40)
We can use this ex-dividend price to calculate the company's P/E ratio after dividend.
P/E = $18.6/$1.34 = 13.88059
