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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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How has globalization contributed to the need for diversity awareness in our organizations?
amid [387]

Answer and explanation:

Globalization has lowered barriers among countries. From a computer, people in remote parts of the world can access to information about attracting countries that offer job positions matching their skills. Some of them are qualified employees that contribute to foreign entities to improve thanks to their diverse experience. Of course, firms have noticed this fact and are more conscious nowadays that overseas employees can play a key role in achieving their objectives. That is the reason why they have started to open up positions especially for qualified immigrants.

3 0
1 year ago
Which investment has the least amount of risk?
exis [7]

Answer:

A. standard deviation = $500, expected return = $5,000

Explanation:

For analysis which investment involved the least amount of risk we need to determine the coefficient of variation i.e. shown below:

As we know that

Coefficient of variance = standard deviation ÷ expected return

A = $500 ÷ $5,000 = 0.10

B = $700 ÷ $500 = 1.40

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5 0
2 years ago
EA11.
Vedmedyk [2.9K]

Answer:

$1,700

Explanation:

Given that,

Purchase of raw materials inventory  = $1,000

Assignment of raw materials inventory to Job 5  = $500

Payroll for 20 hours with $1,000 assigned to Job 5

Factory utility bills = $750

Overhead applied at the rate = $10 per hour

Cost assigned to Job 5 at the end of the week:

= Raw materials inventory to Job 5 + Labor cost + Manufacturing Overhead applied

= $500 + $1,000 + ($10 per hour × 20 hours)

= $500 + $1,000 + $200

= $1,700

3 0
2 years ago
Robinson Company purchased Franklin Company at a price of $2,500,000. The fair market value of the net assets purchased equals $
Fed [463]

Answer:

Explanation:

Goodwill is defined as the excess in amount of the purchase price of a company over the fair value at acquisition.It is intangible in nature , meaning it can not be physically separated from the other assets. Example are patent , brand name , good employee relation.

1.

Goodwill calculation

Purchase price - $2,500,000

Fair value -          $1,800,000

Goodwill -               $700,000        

2.

No

Under the IAS 36, impairment of assets , goodwill is not amortized but annually tested for impairment as amortization is applicable to intangible assets with a definite useful life while intangible assets with indefinite useful life are annually tested for impairment to evaluate a loss in value experienced.

3

No

Under IAS 38 , Internally generated goodwill are not recognized as no related cost is incurred towards achieving a future benefit

7 0
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