During Year 3, Solomon Corporation reported after-tax net income of $3.635,000. During the year, the number of shares of stock outstanding remained constant at 9.860 of $100 par, 9 percent preferred stock and 395.000 shares of common stock. The company's total stockholders' equity is $19,900,000 at December 31. Year 3. Solomon Corporation's common stock was selling at $54 per share at the end of its fiscal year. All dividends for the year have been paid, including $4.80 per share to common stockhoiders. Required a. Compute the earnings per share. (Round your answer to 2 decimal places.)
b. Compute the book value per share of common stock. (Round your answer to 2 declmal places.) c. Compute the price-earnings ratio. (Round Intermedlate calculations and final answer to 2 declmal places.) d. Compute the dividend yield. (Round your percentage answer to 2 declmal places. (Le., 0.2345 should be entered as 23.45 ).)
Answers
a. Earnings per share computation:
During Year 3, Solomon Corporation reported after-tax net income of $3,635,000.
The number of shares of stock outstanding remained constant at:
Preferred Stock = 9,860
Common Stock = 395,000
Total Shares Outstanding = 9,860 + 395,000 = 404,860
Therefore,
Earnings per Share = Net Income / Number of Common Shares Outstanding
= (\(($3,635,000 - $4.80 * 395,000) / 395,000\)
= $8.25 (rounded to 2 decimal places).
b. Book value per share of common stock computation:
The company's total stockholders' equity is $19,900,000 at December 31, Year 3.
Number of shares of common stock outstanding = 395,000
Therefore,
Book value per share of common stock = Total Common Stockholders Equity / Number of Shares of Common Stock Outstanding
= $19,900,000 / 395,000
= $50.38 (rounded to 2 decimal places).
c. Price-earnings ratio computation:
Common stock was selling at $54 per share.
Therefore,
Price-earnings ratio = Market price per share of common stock / Earnings per share
= $54 / $8.25
= 6.55 (rounded to 2 decimal places).
d. Dividend yield computation:
The dividend paid to common shareholders per share = $4.80
Dividend yield is defined as dividend per share divided by the market price per share of common stock.
Therefore,
Dividend yield = Dividend per share / Market price per share of common stock * 100
= \(($4.80 / $54) * 100\)
= 8.89% or 8.90% (rounded to 2 decimal places).
Hence, the answers are:
a. Earnings per share = $8.25
b. Book value per share of common stock = $50.38
c. Price-earnings ratio = 6.55
d. Dividend yield = 8.90%.
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Related Questions
Employees at Maxwell Enterprises are participating in a training and development program. Participants are required to respond to specific problems they may encounter in their jobs by acting out real-world situations. Which type of T
Answers
Answer: role playing
Explanation:
Here is the complete part of the question:
Which type of T&D method is the firm most likely using?
A) coaching
B) job enlarging
C) role playing
D) job rotating
From the question, we are informed that employees at Maxwell Enterprises are participating in a training and development program and that the participants are required to respond to specific problems they may encounter in their jobs by acting out real-world situations. The type of T&D method that the firm is most likely using is role playing.
Role playing is the act of acting a particular role during training in order to ascertain if the person can effectively perform such roles when faced with it in real life or at the workplace. It is used to help prepare workers ahead of the likely scenarios that they may encounter.
Nonmanufacturing costs include ______.
insurance on plant equipment
assembly-line worker wages
company president's salary
sales commissions
Answers
Nonmanufacturing costs, also known as non-production costs, are expenses that are not directly associated with the production of goods or services. These costs are typically divided into two categories: selling expenses and general & administrative (G&A) expenses.
In the given options, "insurance on plant equipment" and "assembly-line worker wages" are not considered nonmanufacturing costs, as they are directly related to the production process. Insurance on plant equipment is a production cost associated with the maintenance and protection of the equipment, while assembly-line worker wages are a part of direct labor costs in the manufacturing process.
On the other hand, the "company president's salary" and "sales commissions" are examples of nonmanufacturing costs. The company president's salary falls under the G&A expenses category, as it is an indirect cost associated with the overall management and administration of the organization. Sales commissions are part of selling expenses, as they are costs incurred in promoting and selling products or services to customers.
In conclusion, nonmanufacturing costs include the company president's salary and sales commissions, while insurance on plant equipment and assembly-line worker wages are considered manufacturing or production costs. These distinctions are crucial for understanding and managing an organization's financial performance and cost structure.
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.Which of the following policies will reduce the budget deficit while achieving greater fiscal restraint?
a. more government expenditure and higher taxes
b. more government expenditure and lower taxes
c. less government expenditure and higher taxes
d. less government expenditure and lower taxes
Answers
The policy that will reduce the budget deficit while achieving greater fiscal restraint is c), which involves less government expenditure and higher taxes.
Option c is the most effective in reducing the budget deficit and promoting fiscal restraint. By reducing government expenditure, the government can cut back on unnecessary spending and prioritize essential programs. This helps to curb the deficit by decreasing overall expenditures.
Additionally, raising taxes generates more revenue for the government, which can be used to offset the deficit. Higher taxes encourage fiscal restraint as individuals and businesses have less disposable income, leading to reduced consumption and investment.
By combining these measures, option c creates a dual impact of reducing spending and increasing revenue, thereby addressing the budget deficit while promoting fiscal restraint.
So C option is correct.
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Question 3 of 10
Which of the following is a hard skill that a marketing manager might use on
a regular basis?
A. Using listening skills to understand employee concerns
B. Using spreadsheets to plan budgets
C. Using leadership skills to motivate a project team
D. Using coding skills to create websites for clients
SUBMIT
Answers
Answer: B. Using spreadsheets to plan budgets
Explanation: yes
What are some of the benefits using a financial institution like a bank or a credit union
Answers
Answer:
They keep money safe and stable. However, Investing in the stock market is also another option, with the opportunity to make large gains with you money, with more risk of course.
Explanation:
brand loyalty in the product choice step of the consumer decision-making process is an example of a .
Answers
Brand loyalty in the product choice step of the consumer decision-making process is an example of a behavioral aspect. Consumers who purchase a product have a tendency to remain loyal to that brand.
In this stage, consumers have a clear idea of what they want to purchase and where they want to purchase it from. In this case, they may have already decided to purchase a specific product from a particular brand. Brand loyalty is a crucial aspect of the product choice stage.
Brand loyalty is a behavior that indicates a consumer's trust and confidence in a particular brand. It refers to the degree of dedication and commitment that a consumer has towards a particular brand. Consumers who are brand loyal tend to remain loyal to the brand even after switching to other brands for certain periods of time.
Brand loyalty can be fostered by a number of factors, including superior product quality, attractive packaging, competitive pricing, customer service, and other factors. Brand loyalty can also be influenced by social, cultural, and psychological factors.
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A credit union
Question 3 options:
is larger than most banks
promotes good spending habits among its members
will allow anyone to join
provides financial service at a higher cost than a bank
Answers
Answer: A credit union promotes good spending habits among its members.
#1 You are driving down the highway when one of your tires suddenly blows out. You should
Pump your brakes rapidly, and steer your vehicle to control any skids.
Avoid using your brakes. Slow down gradually and concentrate on steering.
Press hard on your brake pedal and stop as quickly as you can.
Answers
Which of the following best describes Project Procurement Management?
a. A technique of systematically gathering and analyzing quantitative and qualitative information
b. An agreement to purchase goods from a vendor or seller
c. A description of all purchases outside of the project scope
d. The processes necessary to purchase or acquire products, services, or results from outside the project team
Answers
The processes necessary to purchase or acquire products, services, or results from outside the project team is the best statement which describes Project Procurement Management. Option D is correct.
Project Procurement Management is one of the ten knowledge areas defined in the Project Management Body of Knowledge (PMBOK). It refers to the processes involved in acquiring products, services, or results from outside the project team.
This can include activities such as developing procurement strategies, identifying potential suppliers, negotiating contracts, and managing relationships with vendors or contractors.
The goal of Project Procurement Management is to ensure that the necessary goods and services are obtained from external sources in a timely and cost-effective manner, while also meeting the quality and performance requirements of the project.
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an example of a highly cyclical industry is . a. the automobile industry b. the tobacco industry c. the food industry d. a and b e. b and c
Answers
An example of a highly cyclical industry is automobile industry .
What is automobile industry?
Due to its high cyclicality, the automobile sector typically has high sales while the economy is booming whereas sales normally decline when the economy is in a slump (let alone recessions). There is a very strong link between industrial sales and GDP.What types of vehicle industries exist?
Automobile manufacturers and producers of car parts are the two types of businesses in the automotive sector.
What does the word "automobile" mean?
The term "automobile," often known as "motorcar" or "car," refers to a typically four-wheeled vehicle that is primarily intended for passenger transportation and is frequently powered by an internal combustion engine that burns a volatile fuel.
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Select all that apply.
Select all reasons data mining is important to businesses.
It cuts costs.
It identifies long-term goals.
It solves problems.
It increases profits.
Answers
I sole’s problems increase profits
Answer:
a,c,d
Explanation:
Which of the following is NOT true concerning substitutes? Multiple Choice they may lead to product/service obsolescence batting against a substitute product/service typically involves peice competition and oggressive marketing/ndvertining they're fypically the result of a technological innovation, they increase the power of the customer. When they're first introduced, they're typically offered at a fower price than similar products/services
Answers
Based on the given options, the statement that is NOT true concerning substitutes is: "They increase the power of the customer."
Substitutes can lead to product obsolescence, involve price competition and aggressive marketing, are often the result of technological innovation, and are typically offered at a lower price than similar products/services.
Substitutes refer to alternative products or services that fulfill a similar need or function as the original product or service. Let's analyze each option to determine which one is not true:
1. They may lead to product/service obsolescence: This statement is true. If a substitute gains popularity and offers better features or benefits, it can make the original product or service obsolete.
2. Battling against a substitute product/service typically involves price competition and aggressive marketing/advertising: This statement is true. When faced with a substitute, companies often compete on price and employ aggressive marketing strategies to retain customers.
3. They're typically the result of a technological innovation: This statement is true. Technological advancements often lead to the development of substitutes that offer improved features or efficiency.
4. When they're first introduced, they're typically offered at a lower price than similar products/services: This statement is true. To attract customers and gain market share, substitutes are often introduced at a lower price than similar products or services.
Therefore, the statement that is NOT true concerning substitutes is "They increase the power of the customer." While substitutes can provide customers with more options and bargaining power, they do not necessarily increase their overall power.
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Firms that use ________ rely on computer systems to perform tasks such as speech recognition, decision making, or translations.
Answers
It should be noted that Firms that us Artificial intelligence rely on computer systems to perform tasks such as speech recognition, decision making, or translations.
What is Artificial intelligence all about?Artificial intelligences can be regarded as ability of a computer to do tasks.
This task that are usually done by humans since they require human intelligence and discernment.
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THERE ARE 2 METHODS FOR CONDUCTING A PROGRAM EVALUATION, THE FORMATIVE METHOD AND THE SUMMATIVE METHOD
Answers
There are two main methods for conducting a program evaluation: the formative method and the summative method.
The formative method is used to evaluate programs during their development and implementation stages. This method focuses on continuous feedback and assessment to identify areas for improvement and make adjustments to the program. The goal is to improve the program's effectiveness and efficiency while it is still being developed and implemented.
The summative method, on the other hand, is used to evaluate the overall effectiveness of a program once it has been implemented. This method involves collecting data to determine whether the program has achieved its intended goals and objectives. The goal is to determine the overall impact of the program and identify areas for improvement for future program iterations.
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Which of the following is a personal benefit of eaming a college degree?
A. You have more friends.
B. You are more likely to exercise.
C. You have a longer life expectancy.
D. You are more likely to vote for the right candidate.
Answers
Answer:
Option B !!!!! :))
Explanation:
whats a service and then what's the difference between a product a service
Answers
Answer:A product is a tangible item that is put on the market for acquisition, attention, or consumption, while a service is an intangible item, which arises from the output of one or more individuals. ... In most cases services are intangible, but products are not always tangible. difference between them is products are tangible objects that can be seen, felt and can be moved, whereas, services are intangible and cannot be moved. ... Key Features of a Product. The main character of a product is that it is a physical item that is tangible.
hope this helps have a nice day❤️
Explanation:
How much is a standard tip?
•10-15 percent
•15-20 percent
•20-25 percent
•25-30 percent
Answers
In March 2012, the state of California started requiring that all packaging for food and drink with the additive 4-methylimidazole (4-MI) be clearly labeled with a cancer warning. Because of this, both Pepsi and Coke changed their formulas to eliminate 4-MI as an ingredient. If Pepsi and Coke did NOT change their formulas, holding all else constant, what do you think would have happened to the demand for these goods, assuming Pepsi and Coke were in a competitive market?
Answers
Answer:
Option E.
Explanation:
In case when Pepsi and Coke did not modify its formulas and keeping other things constant the demand for these goods is shifted to left as the price of the products would decline due to which the profit for both companies would fall
Moreover, the fall in demand is not due to an increase in price but it has harmful chemicals which shifted the demand curve to the left
hence, the correct option is E.
for business and personal finance: What is insurance?
Answers
Answer:
Insurance is the procedure by which persons or companies exposed to a specific risk agree with an institution specializing in compensation for damage that the institution will indemnify the damage caused when the risk materializes. The resulting contract is called insurance.
From a commercial point of view, insurance can be defined as the means by which the cost of incidental damage can be converted evenly into a continuous annual cost on an annual basis.
Harper has shown promise, and her manager has suggested that she be paired up with another experienced professional for faster skill development.
What coaching method does the manager use in Harper’s case?
is the training technique that Harper’s manager is using. In this technique, Harper will work with an experienced and already trained employee to develop her skills faster.
Answers
Answer:
i’m pretty sure it’s mentoring
Explanation:
plato
Answer:
Shadowing answer on plato
Explanation:
Role o vision, mission,and objectives in entreprenial development in Nigeria businesses? Pls describe
Answers
Answer:
Developing a vision and mission statement is crucial to the success of community initiatives. These statements explain your group's aspirations in a concise manner, help your organization focus on what is really important, and provide a basis for developing other aspects of your strategic plan
Explanation:
it help u
Which step of the legislative process is missing?
with answers in screenshot
Answers
write a number which is the product of two prime number
Answers
Answer:
2 x 3 = 6. ...............
A product of two primes can never be prime because the product of two primes p1 and p2 is always divisible by those two primes that are smaller than it and always bigger than 1 which is not prime by definition - and a prime is only divisible by 1 and itself.
The first 49 prime numbers are 2, 3, 5, 7, 11, 13, 17, 19, 23, 29, 31, 37, 41, 43, 47, 53, 59, 61, 67, 71, 73, 79, 83, 89, 97, 101, 103, 107, 109, 113, 127, 131, 137, 139, 149, 151, 157, 163, 167, 173, 179, 181, 191, 193, 197, 199, 211, 223, and 227.
No, the product of two (or more) prime numbers cannot result in another prime number.
Read the chart. In 2017, the government spent the least amount of money on which discretionary spending category
Answers
In 2017, the government spent the least amount of money on: Health and Human Services Department.
What is government spending?Government spending can be defined as the amount of money government spent to purchase or acquire goods and services or provide services to the people.
Hence, in the year 2017 the government spent the least amount of money on Health and Human Services Department discretionary spending category compare to others department.
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Answer: Health and Human Services Department
Explanation:
Only $74 billion were spent which is 1.8%, this is the least amount of money spent in the graph.
Given the below scenario related to two new businesses, write a recommendation to each as to what type(s) of organization they should classify as and why, as well as the risks posed if they selected a different type
Ian and Ali own auto parts stores with 25 employees and revenues of $1.5 million per year. They started the business as a partnership but are not sure that it is appropriate given the size, assets, risks and desire to grow the business. They keep a large inventory, and the business owns several trucks used for delivery. Their business is increasing about 20% per year and they want to fund more rapid growth. The growth will require more money. They are concerned about their personal lability but want to raise funds for the business. Given these facts, what type of business organization would you recommend they form, or do you recommend that they continue as a partnership?
Answers
Transition the auto parts stores into an LLC for liability protection, flexibility in raising funds, and maintaining control and ownership while attracting potential investors.
Transitioning their auto parts stores into an LLC would offer Ian and Ali the desired liability protection. By doing so, their personal assets would be safeguarded in the event of any business-related issues or debts. Additionally, an LLC would provide them with flexibility in raising funds for business growth. They can attract potential investors by offering ownership interests or issuing membership units, enabling them to secure the necessary capital for their expanding operations.
Continuing as a partnership may limit their ability to raise funds for rapid growth, as it would require personal investment or loans. Moreover, partnerships typically expose partners to unlimited personal liability, putting their personal assets at risk.
By forming an LLC, Ian and Ali can enjoy the benefits of limited liability while maintaining control and ownership over their business. It offers a favorable balance between liability protection, capital raising opportunities, and the ability to sustain their growth trajectory.
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2. The owner of a franchise benefits from brand name recognition, access to professional
and nationwide advertising.
Answers
Answer:
True
Explanation:
It is TRUE that the owner of a franchise benefits from brand name recognition, access to professional and nationwide advertising.
This is because the owner of a franchise has various advantages. The advantages include enhanced reputation which covers all the places there is a franchise.
Then there is an increase in management techniques and work practices, including access to national advertising to cover many places and continuous support.
A(n)
strategy determines the direction the organization will take in making directional decisions.
A. business
O
B. organizational
C. operational
O
D. corporate
Answers
What types of planning can be done to improve a nation’s economy?
A nation can undergo ____ planning or ___ planning in order to improve its economy.
Answers
Answer:
A nation can undergo long-term planning or constructive planning in order to improve its economy. Long-term planning involves setting goals and implementing policies that will have an impact over a period of several years. This type of planning may involve investments in education, infrastructure, and research and development, among other areas. Constructive planning involves implementing policies that encourage economic growth and development, such as reducing barriers to trade, promoting entrepreneurship and innovation, and investing in key industries. These types of planning can help a nation to create jobs, increase productivity, and improve living standards for its citizens. THANK YOUExplain an Argument In the section "Consequences of Ending Rent Control," you read that most economists argue that the benefits of ending rent control exceed the costs. Do you agree? Why or why not?
Answers
Answer:
Disagree Option
Explanation:
Setting prices ceilings on rent can cause the balance in supply and demand to fall short of each other. For example, let's say the equilibrium for supply and demand was 5 apartments for $100 a month and that the supply at $100 was 5 apartments. If you created a price ceiling at $90, this would cause a greater demand but less of a supply generating an apartment shortage.
"
The definition of a qualifying child applies to which of the
following?
a. Income exclusion
b. Earned income tax credit
c. Head-of-household deduction
d. Unearned income tax
e. Filing status for child
"
Answers
The definition of a qualifying child applies to the Earned Income Tax Credit (option b) specifically, as it determines eligibility for this tax benefit.
A qualifying child is a key factor in determining eligibility for the Earned Income Tax Credit (EITC). The EITC is a tax benefit for low-to-moderate-income individuals and families that is designed to provide financial assistance and reduce the overall tax burden. To claim the EITC, you must meet certain criteria, including having a qualifying child.
A qualifying child must meet specific requirements related to age, relationship, residency, and dependency.
These requirements ensure that the child is a legitimate dependent and that the taxpayer is eligible for the tax credit. Meeting the definition of a qualifying child allows taxpayers to claim the EITC, which can provide significant financial support and potentially result in a tax refund.
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