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2 years ago

Between projects A and B, project A will be considered a superior financial undertaking if it has:

Business

1 answer:

Mashutka [201]2 years ago

8 0

Answer:

A. a shorter payback period than project B.

Explanation:

Payback period is the period when the investment value is fully recovered through the business.

Hence the shorter the payback period, the better it is because this means that the return on investment in earned at a greater pace.

Hope this clear things up.

Good luck.

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The following information is available for the Maribel Company for the month of June: The unadjusted balance of the company's Ca

Alex787 [66]

Answer:

The adjusted bank and book balance is shown below:-

Explanation:

The computation of the adjusted bank and book balance is given below:-

Bank statement balance Book balance

Opening balance $26,960 $26,620

Add: Transit Deposit $3,000 Earned Interest $150

Less: Outstanding check 4000 Error on check $810

($4,900 - $4,090)

Adjusted Balance $25,960 $25,960

5 0

2 years ago

On September 30, 2021, the San Fillipo Corporation issued 8% stated rate bonds with a face amount of $180 million. The bonds mat

pychu [463]

Answer:

Bond Price = $149.1136446 million rounded off to $149.11

Explanation:

To calculate the price of the bond today, we will use the formula for the price of the bond. We assume that the interest rate provided is stated in annual terms. As the bond is a semi annual bond, the coupon payment, number of periods and semi annual YTM will be,

Coupon Payment (C) = 180 million * 0.08 * 6/12 = 7.2 million

Total periods (n) = 20 * 2 = 40

r or YTM = 0.1 * 6/12 = 0.05 or 5%

The formula to calculate the price of the bonds today is attached.

Bond Price = 7.2 * [( 1 - (1+0.05)^-40) / 0.05] + 180 / (1+0.05)^40

Bond Price = $149.1136446 million rounded off to $149.11

3 0

2 years ago

Here is the income statement for Skysong, Inc. SKYSONG, INC. Income Statement For the Year Ended December 31, 2017 Sales revenue

Semenov [28]

Answer:

a. The Earnings per share is $2.64 per share

b. The Price-earnings ratio is 5.30 times

c. The Payout ratio is 26.44%

d.The Times Interest earned is 7.76 times

Explanation:

a. In order to calculate the Earnings per share we would have to use the following formula:

Earnings per share = [Net Income - Dividend on preferred stock] / Average outstanding common shares

Average outstanding common shares = [24,700 shares + 37,100 shares]/2 = 30,900 shares

Earnings per share = [$86,600 - $4,900] / 30,900 shares = $2.64 per share

b. In order to calculate the Price earnings ratio we would have to use the following formula:

Price earnings ratio = Market price per share / Earnings per share

Price earnings ratio = $14 / $2.64 = 5.30 times

c. In order to calculate the Payout ratio we would have to use the following formula:

Payout ratio = Dividend / Net Income

Payout ratio = $22,900 / $86,600 = 26.44%

d. In order to calculate the Times Interest earned we would have to use the following formula:

Times Interest earned = Earnings before interest and taxes / Interest Expense

Earnings before interest and taxes = Net Income + Interest Expense + Taxes = $86,600 + $16,700 + $26,400 = $ 129,700

Times Interest earned = $129,700/ $16,700 = 7.76 times

4 0

1 year ago

Omicron Technologies has $60 million in excess cash and no debt. The firm expects to generate additional free cash flows of $48

blondinia [14]

Answer:

The correct answer is $ 4.5714 which is not in the answer choice but is close to $432.00 million

Explanation:

Solution

Given that:

let us Assume that Omicron uses the entire $60 million to repurchase shares. The amount of the regular yearly dividends in the future is closest to is:

The Enterprise value =$48/0.10 = $480 million

Then,

The Market value = Enterprise value + cash = $480 + $60 = $540 million

Thus,

The Share price = market value / shares outstanding = $480 million / 12 million = $40

The Number of shares repurchased = $60 million / $40 = 1,500,000 shares

The Shares outstanding = 12,000,000 - 1,500,000 = 10,500,000

Dividend = $48 million free cash flow / 10,500,000 = $4.571

8 0

1 year ago

Which type of decision maker over-analyzes a given piece of information?

Talja [164]

B...................

7 0

2 years ago

Read 2 more answers