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klio [65]
1 year 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]1 year 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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Answer:

Cash Inflow would be cash coming into the company and Cash Outflow would be going out.

<h2>Cash Inflow</h2>
  • Water Sales
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<h2>Cash Outflow</h2>
  • Well drilling - drilling well requires cash expenditure
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In the event of a crisis, your company should be ready to respond immediately by appointing a crisis team of five to seven emplo
Lynna [10]
The task of a crisis management team is to mitigate conflict. A crisis management team is effective when crisis is preemptively identified and scenarios for resolution are in place. A crisis management team should promptly acknowledge crisis to employees and shareholders.
3 0
1 year ago
KHD has 1,500 bonds outstanding that are selling for $1,000 each. The common stock is priced at $26 a share and there are 36,000
aleksklad [387]

Answer:

38.42%

Explanation:

First, find the market value of debt( bonds in this case);

market value of debt = price of bond * number of bonds

 = $1,000 * 1,500 = $1,500,000

First, find the market value of common stock;

market value of common stock = price per share * number of stock outstanding

 = $26 * 36,000 = $936,000

Since debt and equity make up KHD company's capital ,

total capital = market value of debt + market value of common stock

= $1,500,000 + $936,000

= $2,436,000

Weight of the common stock = market value of common stock / total capital value;

= $936,000/ $2,436,000

= 0.3842 or 38.42% as a percentage

Therefore, What is the weight of the common stock is 38.42%

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1 year ago
Demarco and Tanya have received information about three separate mortgage offers. In two or three paragraphs, describe your reco
Alex787 [66]

Answer: first one

As for Mortgage Option 3, not only is the interest rate higher (4.0%), but the remaining balance that is not paid has to be paid off completely in 8 years. After the down payment, they would have a $1,605 monthly payment which includes the fixed interest rate of 4.25% as well. Due to the short payment time, a borrower has a risk of loosing their home and equity if the final payment is not able to be made. Mortgage Option 2 has the lowest interest rate (3.5%) but these rates could be adjusted annually. Even though the interest rate is the highest, they would be able to afford it. Not only are they able to make these payments, Tanya and Demarco would also have. approximately $3,395 left to spend from their monthly earnings too.

Explanation:

credit to mohammedalm2

5 0
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Scora, Inc., is preparing its master budget for the quarter ending March 31. It sells a single product for $50 per unit. Budgete
valentina_108 [34]

Answer:

As per Sales Budget the budgeted sales for the quarter four are $240,000. Below is the Sales budget.

Explanation:

Scora, Inc.    

Sales Budget    

Month Budgeted Unit Sales Budegted Unit Price Budgeted Total Sales

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January                          1200                   $50            $60,000

February                         2000                   $50            $100,000

March                         1600                   $50            $80,000

Total for the quarter 4800                   $50            $240,000

Hence, it is concluded that the budgeted sales for the January, February, March are $240,000.

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