Answer:
$1.7; 44 times
Explanation:
a) EPS(20X1):
= Earnings after taxes / Number of shares
= $340,000 / 200,000
= $1.7
P/E ratio(20X1):
= Price / EPS
= $74.80 / $1.7
= 44 times
EPS(20X2):
= Earnings after taxes / Number of shares
= $378,000 / 200,000
= $1.89
P/E ratio(20X2):
= Price / EPS
= $83.00 / $1.89
= 43.92 times
Answer:
Olson can successfully press charges and force Duncan to take care of the damages caused to the car ( D )
Explanation:
Chuck Olson age 16 ( a minor ) can successfully press charges and request/force Bobby Duncan used cars center to take care of the damages caused to the car. this is because according to traditional common laws a contract entered by a minor is considered null and void hence Olson can successfully disaffirm the contract and Bobby Duncan would have to accept the damages and take care of them.
A minor is not required by traditional common law to entered into any form of obligatory contract.
Answer:
December 31, 2018, bonds are issued
Dr Cash 461,795
Cr Bonds payable 450,000
Cr Premium on bonds payable 11,795
amortization expense per coupon = $11,795 / 6 coupon payments = $1,965.83
June 30, 2019, first coupon payment
Dr interest expense 18,284.17
Dr Premium on bonds payable 1,965.83
Cr Cash 20,250
The amortization of the premium on bonds payable decreases the interest expense.
Answer:
The total corporate value of the firm is $3,000,000
Explanation:
The total corporate value of the firm is computed as:
Total corporate value = FCF1 / (average cost of capital - Growth rate)
Where
FCF1 is $150,000
Growth rate is 6.5%
average cost of capital is 11.5%
Putting the values :
= $150,000 / (11.5% - 6.5%)
= $150,000 / 5%
= $3,000,000
