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klio [65]
2 years ago
12

Mountain Top Markets has total assets of $48,700, net working capital of $1,100, and retained earnings of $21,200. The firm has

12,500 shares of stock outstanding with a par value of $1 per share and a market value of $7.10 per share. The stock was originally issued to the firm's founders at par value. What is the market-to-book ratio
Business
1 answer:
spin [16.1K]2 years ago
6 0

Answer: 2.63

Explanation:

The Market to Book ratio is also referred to as the price to book ratio. It is a financial evaluation of the market value of a company relative to its book value. It should be noted that the market value is current stock price of every outstanding shares that the company has while the book value is the amount that the company will have left after its assets have been liquidated and all liabilities have been repaid.

The market-to-book ratio will be the market price per share divided by the book value. It should be noted that the book value per share is the net worth of the business divided by the number of outstanding shares. The book value will be:

= [(12500 ×1) + $21200]/12500

= ($12500 + $21200)/$12500

= $33700/12500

=$2.70

The market-to-book ratio will now be:

= $7.10/$2.70

=2.63

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The balance sheet of Purdy's BBQ reports total assets of $800,000 and $900,000 at the beginning and end of the year, respectivel
Amiraneli [1.4K]

Answer:

Option (B) is correct.

Explanation:

Given that,

Total assets (Beginning) = $800,000

Total assets (Ending) = $900,000

Net income = $85,000

Sales = $1,700,000

Average assets = [Total assets (Beginning) + Total assets (Ending)] ÷ 2

                          = [$800,000 + $900,000] ÷ 2

                          = 850,000

Purdy's asset turnover:

= Sales ÷ Average assets

= $1,700,000 ÷ 850,000

= 2

4 0
2 years ago
Assume the position of a consultant hired to assess the approach toward HR management taken by a client organization. What facto
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Answer and Explanation:

The factors which needs to be evaluated in determining whether an organization uses a traditional or strategic approach to managing its HR are the Responsibility for HR, Focus area, Role of HR, HR Initiatives, Time Horizon, Control, Job Design, Key Investments and Accountability

The specific questions that need to be answered are:

How are information and resources allocated and managed?

Is the HR strategy understood by all the employees?

Is the mission and strategy integrated with the organization's goals and objectives?

These questions should be asked to the upper management personnel who make strategic decisions in the company.

6 0
2 years ago
Discuss the problems associated with Burberry’s licensing arrangement in Japan. What were the benefits of establishing a relatio
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Answer:

Problems: For details refer below

Benefits: For details refer below

Explanation:

Problems associated with Burberry’s licensing arrangement in Japan

1) Licenser creates potential competitors

2) There is a lower control in licensee

Benefits of establishing a relationship with Sanyo Shokai in the country

1) Less costly as compare to Foreign direct investment

2) Responsibility can be shared with the third party

7 0
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On January 1, 2018, Ramsey Company purchased 35% of the outstanding common shares of the Vapor Company for $70,000 when the net
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Answer:  Investment income = Earning during 2018 × outstanding common shares

= $80,000 × 35%

Dividend declaration  = Dividend × outstanding common shares

= $40,000 × 35%

<em>Ramsey’s share of Vapor’s income for 2018 =  Investment income - Dividend declaration</em>

<em>= $28,000 - $14,000</em>

<em>= $14,000</em>

8 0
2 years ago
Auto parts manufacturer JEG Inc. has a number of vacancies at lower management levels and wants to fill the positions from withi
Ainat [17]

Answer:

B)Unqualified applicants will need explanations about why they did not get the job.

Explanation:

From the question we are informed Auto parts manufacturer JEG Inc. who has a number of vacancies at lower management levels and wants to fill the positions from within the company itself rather than recruit externally. The company plans to e-mail the job specifications to all employees and post the jobs on the company Web site. In this case, what could weaken the company's decision, is that Unqualified applicants will need explanations about why they did not get the job.

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