answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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

You might be interested in
How much would it cost for Chester Corporation to repurchase all its outstanding shares if new brokerage fees totaled 1% of the
Vinvika [58]

Answer:

$78.0 million

Explanation:

Cost of repurchase = Number of shares*Share price/(1-1%)

Cost of repurchase = $3,352,720 * $23.02/(1-1%)

Cost of repurchase = $3,352,720 * $23.02/(1 - 0.01)

Cost of repurchase = $3,352,720 * $23.02/0.99

Cost of repurchase = $3,352,720 * $23.25

Cost of repurchase = $ 77,950,740

Cost of repurchase = $78.0 million

6 0
2 years ago
Suppose the following information (in thousands of dollars) is available for H.J. Heinz Company—famous for ketchup and other fin
Katena32 [7]

Answer:

Explanation:

The classified balance sheet comprises of the assets, liabilities, and stockholder equity.  With the help of the accounting equation, the total assets are equal to the total liabilities including stockholder's equity.

The assets are further divided into current assets, fixed assets, and intangible assets. Similarly, the liabilities are also further divided but they do not have any intangible liabilities.

The preparation of the partial balance sheet is presented in the spreadsheet. Kindly find the attachment below:

4 0
2 years ago
Which careers are best suited for someone with a bachelor's degree but not a master's degree? Check all that apply. Utilities Me
dexar [7]

Answer:

  • Tax Examiner
  • Equal Opportunity Representative

Explanation:

Usually tax examiners perform tasks like: reviewing tax returns, contacting taxpayers, verify data through audits, evaluation financial information, notifying taxpayers about overpayments or underpayments.

Equal opportunity representative main role is to monitor and evaluate compliance with equal opportunity laws, which means that they must investigate employment practices or alleged violations of the Equal Opportunity Act and other laws and regulations that prohibit work discrimination.

4 0
2 years ago
Caroline runs her own business selling horse related products (saddles, boots, bridles, etc.). She is considering investing $70,
Katyanochek1 [597]

Answer:

The present value the expected costs of the new security and data management system is $-75,062.5

Explanation:

Kindly check attached picture for explanation

6 0
2 years ago
For the coming year, Loudermilk Inc. anticipates fixed costs of $600,000, a unit variable cost of $75, and a unit selling price
Shtirlitz [24]

Answer:

a) 4.800 units: Operational loss area (L)

12,000: Break even point (BEP)

$1,500,000: BEP

20,000 units: Operational profit area (P). Also, the maximum amount of units.

$2,500,000: Operational profit area (P). Also, the maximum amount of sales.

b) BEP: 12,000 units or $1,500,000 in sales.

Explanation:

The graph is divided in two sections:

1 - The operational loss area (L)

2 - The operational profit area (P)

The interface between both regions is the breakeven point.

a) 4.800 units: Operational loss area (L)

12,000: Break even point (BEP)

$1,500,000: BEP

20,000 units: Operational profit area (P). Also, the maximum amount of units.

$2,500,000: Operational profit area (P). Also, the maximum amount of sales.

b) The breakeven point is where sales equal total cost (or the level at which profits are zero). This breakeven point (BEP) is at 12,000 units:

BEP=\frac{FC}{price-VC} =\frac{600,000}{125-75}=\frac{600,000}{50}=12,000

This corresponds to $1,500,000 in sales.

S_{BEP}=125*12,000=1,500,000

7 0
2 years ago
Other questions:
  • ____ analysis involves studying various market parameters in order to predict future price movements of stock.
    8·2 answers
  • Deep water can _____.
    15·2 answers
  • In the process of reconciling its bank statement for January, Maxi's Clothing's accountant compiles the following information:
    6·1 answer
  • The stock price of Atlantis Corp. is $43 today. The risk-free rate of return is 10%, and Atlantis Corp. pays no dividends. A cal
    13·1 answer
  • Which accounting principle states that a company should "report expenses in the same period as the revenue they help generate"?
    7·1 answer
  • Ronen Consulting has just realized an accounting error that has resulted in an unfunded liability of $ 398 comma 930 due in 28 y
    11·1 answer
  • Mary owns 100 percent of a gift shop with an equity value of $150,000. If she keeps the shop open 5 days a week, EBIT is $75,000
    13·1 answer
  • During the year, ABC had the following cash flows: receipt from customers, $10,000; receipt from the bank for long-term borrowin
    13·1 answer
  • Pension data for David Emerson Enterprises include the following: ($ in millions) Discount rate, 10% Projected benefit obligatio
    14·1 answer
  • Computech Corporation is expanding rapidly and currently needs to retain all of its earnings; hence, it does not pay dividends.
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!