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Alchen [17]
2 years ago
10

The balance sheet for Seuss Company at the end of the current fiscal year indicated the following: Bonds payable, 10% (20-year t

erm) $5,000,000 Preferred 10% stock, $100 par 1,000,000 Common stock, $10 par 2,000,000 Income before income tax was $1,500,000 and income taxes were $200,000 for the current year. Cash dividends paid on common stock during the current year totaled $150,000. The common stock sells for $75 per share at the end of the year. Required: Determine each of the following: Round ratios and percentages to one decimal place, and monetary amounts to the nearest cent. 1. Times interest earned times 2. Earnings per share on common stock $ 3. Price-earnings ratio 4. Dividends per share of common stock $ 5. Dividend yield %
Business
2 answers:
Alla [95]2 years ago
8 0

Answer:

Explanation:

1) Interest expense = 5000000 × 10% = 500000

Times interest earned = Income before interest and tax / Interest expense = (1500000+500000) / 500000 = 4 Times

2) Earning per share of Common Stock = (Income after tax-Income tax-preferred dividend) / Share outstanding = (1500000-200000-100000 ) / 200000 = 6 per share

3) Price earning ratio = 75 / 6 = 12.50 times

4) Dividend per share of Common Stock = 150000 / 200000 = 0.75 per share

5) Dividend yield = 0.75 / 75 = 1%

9966 [12]2 years ago
6 0

Answer:

TIE 4

Common Stock Earning per Share = 6

Dividends per share = 0.75

Dividends yield 1%

Explanation:

<em><u>Interest expense:</u></em>

5,000,000 bonds value x 10% rate = 500,000 interest expense

<em><u>Earnings before interest and taxes:</u></em>

IBT + interest expense = 1,500,000 + 500,000 = 2,000,000

TIE: interest before interest / interest expense

   2,000,000 / 500,000 = 4

<em><u>preferred stock dividends:</u></em>

1,000,000 x 10% = 100,000

net income - preferred divideds:

1,300,000 - 100,000 = 1,200,000 earnigns for comon stock:

common stock outstanding:

2,000,000 / $10 each = 200,000

Earning per share: 1,200,000 / 200,000 = 6.00

Dividends per share: 150,000 / 200,000 = 0.75

Dividend yield: dividend per share / price of ommon stock

0.75 / 75 = 0.01

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Suppose that a monopolistically competitive restaurant is currently serving 260 meals per day (the output where MR = MC). At tha
IgorC [24]

Answer:

a. Profit; $520

b. Firms will enter; Left

c. Zero profits or normal profits

Explanation:

A restaurant is operating in a monopolistic competitive market.

The restaurant is producing 260 meals per day.

This is the profit maximizing level of output where the marginal cost is equal to marginal revenue.

The average total cost at this point is $10.

The price level is $12.

The profit or loss to the restaurant will be equal to the difference between total revenue and total cost.

a. Profit

= Total Revenue - Total cost

= $12\times 260 - $10 \times 260

= $3,120 - $2,600

= $520

b. This supernormal profit will attract other firms to enter the market, as a result the market share of existing firms will decline. The demand curve of the restaurant will move to the left.

c. In the long run, the firms in a perfectly competitive market earn only zero economic profits as positive profits attract new firms and negative profits cause the firms to leave.

So the restaurant will have zero or normal profits in the long run.

4 0
1 year ago
Evaluate the current China/Taiwan logistics costs. Assume a current total volume of 190,000 CBM and that 89 percent is shipped d
RSB [31]

Answer:

The total cost involved in shipping the containers to country U.S is $2,594,930

Explanation:

Consider the following information regarding Company WWG:

Total Current volume (CBM) = 190,000  

Direct shipping percentage = 0.89  

Direct ship Volume (CBM) = 169,100  

Consolidation center volume = 190,000 - 169,100 = 20,900

Calculate the shipping cost of the company as shown below:  

Shipping Cost calculations

Direct ship by Container type (in Feet)  20    40  

Volume (%)                            0.21    0.79  

Volume (CBM)                169,100*0.21          169,100*0.79

                                                                          = 35,511           =133,589

Container capacity used         85%    85%

Container center by container type

Volume (%) = 100  

Volume (CBM) = 20,900

Container capacity used = 96%

Container capacity (CBM) (34)  

Container shipped = 35,511/ (34*0.85) =1,229  

Shipping Cost per container = $480

Shipping Cost by container size ($) = 1,229*480 4589,920

Container capacity (CBM) (67)      

Container shipped  = 133,589/ (0.85*67) + 20,900/ (0.96*67) = 2,671  

Shipping Cost per container = $600

Shipping Cost by container size ($) = 2,671*600 = $1,602,600

Calculate the total shipping cost as shown below:  

Total shipping cost = $589,920+$1,602,600 = $2,192,520

Calculate the consolidation center operating cost as shown below:

Number of centers = 4

Annual fixed cost per center = $75,000

Total annual fixed cost = $75,000*4 =$300,000

Variable cost per CBM = $4.9

Total annual variable cost = 20,900*$4.9 = $102,410

Total annual consolidation center costs = $300,000+$102,410= $402,410

Calculate the total cost involved in shipping containers to the Country U as shown below:

Total Cost = Total Shipping Cost + Total Annual Consolidation center Cost  

     = $2,192,520 + $402,410

     = $2,594,930

Hence, the total cost involved in shipping the containers to country U.S is $2,594,930.

4 0
2 years ago
Vignana corporation manufactures and sells hand-painted clay figurines of popular sports heroes. shown below are some of the cos
SVETLANKA909090 [29]

Answer:

$175,000

Explanation:

Conversion costs are production costs that must be incurred in order to change raw materials into products.

Therefore, we have:

Total of the conversion costs = Cost of clay used in production + wages paid to the workers who paint the figurines = $76,000 + $99,000 = $175,000

8 0
1 year ago
Which of the following is not an example of organizational citizenship behaviour? telling your friends about the company’s great
Hoochie [10]

Answer: discouraging a friend from applying for a job at the company

Explanation: i would choose this one because organizational is behavior's that  is perceived as a positive, extra-role, pro-social demeanor which benefits the employer and enhances the overall success of a business discouraging a friend from applying for a job at the company that is very   a  discouraging to a person no positivity there lol

4 0
2 years ago
Assume that both firm A and firm B formally agree to each put up $10 million to form firm C. The operations of firm C are restri
Alchen [17]

Answer: a. joint venture.

Explanation:

A Joint Venture refers to when 2 or more entities come together and put up resources necessary to accomplish a certain task or venture that will be beneficial to all of them.

For example, BMW and Toyota jointly started research into utilizing hydrogen fuels and Google cooperated with NASA to create Google Earth.

Firm C is a Joint venture between Firms A and B.

8 0
2 years ago
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