Gullett Corporation had $37,000 of raw materials on hand on November 1. During the month, the Corporation purchased an additional $86,000 of raw materials. The journal entry to record the purchase of raw materials would include a:

Answers

Answer 1

Answer: See explanation

Explanation:

The journal entry to record the purchase of raw materials is analysed below:

November:

Dr Raw materials $86000

Cr Cash or account payable $86000

It should be noted that as the raw material is increasing, the raw material account will be debited while as the cash or account payable I decreasing, it is credited.


Related Questions

Synovec Co. is growing quickly. Dividends are expected to grow at a rate of 26 percent for the next 3 years, with the growth rate falling off to a constant 7 percent thereafter. If the required return is 14 percent and the company just paid a $1.90 dividend. what is the current share price

Answers

Answer:

$46.20

Explanation:

Dividend in year 1 = 1.90 x 1.26 = 2.39

Dividend in year 2 = 1.90 x 1.26² = 3.02

Dividend in year 3 = 1.90 x 1.26³ = 3.80

Dividend in year 3 = (3.80 x 1.07) / (0.14 - 0.07) = 58.10

Calculate the present value of these dividends

Present value is the sum of discounted cash flows

Present value can be calculated using a financial calculator

Cash flow in year 1 = 2.39

Cash flow in year 1 = 3.02

Cash flow in year 1 = 3.80 + 58.10

I = 14

PV = $46.20

To determine PV using a financial calculator take the following steps:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  

Scott Lockhart owns and operates AAA Delivery Services. On January 1, 20Y7, Common Stock had a balance of $40,000 and Retained Earnings of $815,500. During the year, no additional common stock was issued, and $10,000 of dividends were paid. For the year ended December 31, 20Y7, AAA Delivery reported a net income of $67,250. Prepare a statement of stockholders' equity for the year ended December 31, 20Y7.

Answers

Answer and Explanation:

The preparation of the statement of stockholder equity should be presented below:

Statement of stockholders' equity

For the year ended December 31, 20Y7

Particulars                   Common Stock          Retained Earnings          Total

Beginning balance,

January 1                       40000                           815500                        855500

Add: Net income            0                                    67250                           67250

Less: Dividends paid     0                                    -10000                        -10000

Ending balance,

December 31                  40000                              872750                   912750

The stockholders' equity balance for the year ended December 31, 20Y7 is $912,750    

What is stockholders' equity?

Shareholders' equity is what shows the investment status of a business over a period of time.

Statement of stockholders' equity for the year ended December 31, 20Y7

Particulars                   Common Stock          Retained Earnings          Total

Beginning balance,

January 1                       40,000                           815,500                      855,500

Add: Net income            0                                    67,250                           67,250

Less: Dividends paid     0                                    -10,000                        -10,000

Ending balance

December 31                  40,000                           872,750                   912,750    

Learn more about stockholders' equity here :   https://brainly.com/question/16289143  

The following data relate to direct labor costs for August: actual costs for 5,500 hours at $24.00 per hour and standard costs for 5,000 hours at $23.70 per hour. The direct labor rate variance is a.$1,500 unfavorable b.$1,500 favorable c.$1,650 unfavorable d.$1,650 favorable

Answers

Answer: c. $1,650 unfavorable

Explanation:

The direct labor rate variance shows the difference between the cost of direct labor that the company thought it would incur vs what it actually incurs for the period.

Formula is:

Direct labor rate variance = Actual cost of direct labor - Standard cost of actual hours of direct labor

= Actual hours * (Actual cost - Standard cost)

= 5,500 * (24 - 23.70)

= $1,650 unfavorable

Unfavorable because the actual cost incurred was more than the cost anticipated.

reparation of Stockholders’ Equity Section Wildcat Drilling has the following accounts on its trial balance. Debit Credit Retained Earnings 600,000 Cash 825,000 Additional Paid-In Capital—Common 3,100,000 Additional Paid-In Capital—Preferred 400,000 Accounts Payable 345,000 Accounts Receivable 410,000 Common Stock, $1 par 600,000 Preferred Stock, $10 par 340,000 Inventory 1,300,000 Treasury Stock—Common (30,000 shares) 382,000 Accumulated Other Comprehensive Income 70,000 Required: Prepare the stockholders’ equity portion of Wildcat’s balance sheet.

Answers

Answer:

Wildcat Drilling

Stockholders' Equity Section:

Common Stock, $1 par                                         600,000

Preferred Stock, $10 par                                      340,000

Additional Paid-In Capital—Common                3,100,000

Additional Paid-In Capital—Preferred                 400,000

Treasury Stock—

Common (30,000 shares)                                  (382,000)

Retained Earnings                                               600,000

Accumulated Other Comprehensive Income      70,000

Explanation:

a) Data and Calculations:

Wildcat Drilling Trial Balance Accounts:

                                                           Debit              Credit

Cash                                               825,000

Accounts Receivable                     410,000

Inventory                                    1,300,000

Accounts Payable                                                  345,000

Common Stock, $1 par                                         600,000

Preferred Stock, $10 par                                      340,000

Additional Paid-In Capital—Common                3,100,000

Additional Paid-In Capital—Preferred                 400,000

Treasury Stock—

Common (30,000 shares)           382,000

Retained Earnings                                               600,000

Accumulated Other Comprehensive Income      70,000

Why does the government sometimes use an expansionary fiscal policy?

Answers

Expansionary fiscal policy is used to kick-start the economy during a recession. It boosts aggregate demand, which in turn increases output and employment in the economy.

Slotnick Chemical received $280,000 from customers as deposits on returnable containers during 2021. Fifteen percent of the containers were not returned. The deposits are based on the container cost marked up 20%. How much profit did Slotnick realize on the forfeited deposits

Answers

Answer:

$7,000

Explanation:

The computation of the profit that should realize on the forfeited deposits is given below:

Deposited forfeited is

= $280,000 ×15%

= $42,000

Now the cost of the discount forfeited is

= $42,000 ÷ (100 + 20%$)

= $35,000

So, the profit realized is

= $42,000 - $35,000

= $7,000

San Antonio Chair Inc. has direct labor cost standard of $14 per direct labor hour and an efficiency standard of 6 hours per chair. The actual results for the period when 30 chairs were built were 130 direct labor hours at an actual cost of $1,560. What is the direct labor cost variance

Answers

Answer:

Total direct labor variance= $960 favorable

Explanation:

Giving the following information:

We will separate the direct labor cost variance in rate and quantity variance. To calculate the direct labor rate and quantity variance, we need to use the following formulas:

Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate

Direct labor time (efficiency) variance= (30*6 - 130)*14

Direct labor time (efficiency) variance= $700 favorable

Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity

Direct labor rate variance= (14 - 12)*130

Direct labor rate variance= $260 favorable

Actual rate= 1,560/130= $12

Total direct labor variance= 700 + 260

Total direct labor variance= $960 favorable

For the remaining questions, please consider the following transactions that happened upon the incorporation of Berry Company by its owner, John Berry, during the first week of January:

· It received €50,000 in cash from John Berry as capital.

· It borrowed €30,000 from a local bank.

· It purchased €15,000 of equipment for cash.

· It purchased €20,000 of inventory on account.

· It pre-paid €3,000 for the office rent and €2,000 for the insurance.

What is the total current assets at the end of the week?

Answers

Answer: €100,000

Explanation:

Cash received is an assetThe money borrowed is also cash so assets increaseEquipment was exchanged for cash. Both of them are assets so there is NO EFFECT on assets here. Inventory purchased on account will increase assets because assets were acquired with liabilities in this instance. Prepayments are assets but because this was paid with cash, there is NO EFFECT on assets as they cancel each other out.

Total assets at the end of the week are:

= Cash + Cash borrowed + Inventory purchased on account

= 50,000 + 30,000 + 20,000

= €100,000

Grapefruit, Inc. provides the following information for 20X8: Net income $39,000 Market price per share of common stock $20/share Dividends paid $0.75/share Common stock outstanding at Jan. 1, 2018 110,000 shares Common stock outstanding at Dec. 31, 2018 155,000 shares The company has no preferred stock outstanding. Calculate the dividend yield for common stock.

Answers

Answer: 3.75%

Explanation:

Dividend yield = Annual dividend / Common stock market price

Annual dividend = 0.75 per share

Common stock market price = $20 per share

Dividend yield = 0.75 / 20

= 3.75%

the financial statements for banana company include the following items: 20x9 20x8 cash $51,500 $50,000 short-term investments 25,000 15,000 net accounts receivable 53,000 50,000 merchandise inventory 163,000 50,000 total assets 532,000 554,000 accounts payable 131,500 124,000 salaries payable 25,000 13,000 long-term note payable 59,000 53,000 compute the current ratio for 20x8. group of answer choices

Answers

Answer:

1000,$5000maaf kalo salah

When the value of a currency A reduces as a result of an increase in the value of another currency B, then currency A would be said to have Select one O a, Arranged b. Depreciated OC Devalued O d. Denominated​

Answers

the answer is not here the answer is deficit but I will pick depreciated

A company's managers should almost always give serious consideration to making significant adjustments in its camera/drone strategies and competitive approaches when:

a. all or most of its competitors are using mostly different competitive approaches and therefore the marketplace is not big enough to accommodate all of the competitors.
b. all or most of its competitors are using mostly copycat competitive approaches that make it difficult for any of these companies to capture sales volumes and revenues big enough to earn profits large enough to meet investor-expected EPS, ROE, and stock price appreciation targets.
c. the number of camera and drone workstations the company has installed is NOT well above the industry-averages (as reported on pages 6 and 7 of the most recent Camera & Drone Journal).
d. the company's market share for action cameras has not been the largest for two straight years and when its EPS and ROE have also not been the highest in the industry for two straight years.
e. the company's operating profits per action camera sold are not substantially above the industry-average benchmarks in at least three geographic regions (as reported on p. 6 of the most recent Camera & Drone Journal),

Answers

Answer:

Hence the correct option is option b - All are most of its competitors are using mostly copycat competitive approaches that make it difficult for any of these companies to capture sales volumes and revenues big enough to earn profits large enough to meet investor expected EPS, ROE, and stock price appreciation targets.

Explanation:      

A company's management should nearly always give serious consideration to creating significant adjustments in its camera or drawn strategies and competitive approaches when all or most of its competitors are using mostly copycat competitive approaches that make it difficult for any of those companies to capture sales volumes and revenues large enough to earn profits large enough to satisfy investor expected EPS ROE and stock price appreciation targets.

The correct option for the given question is "all or most of its competitors are using mostly copycat competitive approaches that make it difficult for any of these companies to capture sales volumes and revenues big enough to earn profits large enough to meet investor-expected EPS, ROE, and stock price appreciation targets."

What is camera/drone strategies?

The camera/drone strategy involves the strategic approach of a company in which the company overlooks its competitors, their market, and strategies and modify its strategies accordingly.

If the competitors are using copycat competitive approaches and hence are making it difficult for the company to achieve sales volume and revenue and the expectations of the companies' investors regarding the EPS, ROE and stock price appreciation are difficult to meet, the company  should consider its camera/drone strategies and competitive approaches.

Therefore the correct option is b.

Learn more about camera/drone strategies here:

brainly.com/question/27006230

Assume a firm generates $2,500 in sales, has a $800 increase in accounts receivable and has a $500 increase in accounts payable during an accounting period. Based solely on this information, cash flow from operations will increase by:

Answers

Answer:

Cash flow from operations will increase by $2,200.

Explanation:

The amount of increase in cash flow from operations can be calculated as follows:

Increase in cash flow from operations = Sales - Increase in accounts receivable + Increase in accounts payable …………… (1)

Sales = $2,500

Increase in accounts receivable = $800

Increase in accounts payable = $500

Substituting the values into equation (1), we have:

Increase in cash flow from operations = $2,500 - $800 + $500 = $2,200

Therefore, cash flow from operations will increase by $2,200.

A differentiation strategy allows a company to charge a(n) __________ price for its product, if it chooses to do so. a. premium b. exorbitant c. low d. average e. escalating

Answers

Answer:

A

Explanation:

A differentiation strategy entails making ones product different from that of other firms in the industry. This would enable the firm that has a differentiated product sell at a premium. The aim of this strategy is to have a competitive advantage

Advantages of a differentiation strategy

products are unique. This reduces the competition the product faces with other products in the industry it increases brand loyalty

Identify the situation below that will result in a favorable variance.
a. Actual costs are higher than budgeted costs.
b. Actual income is lower than expected income.
c. Actual expenses are higher than budgeted expenses.
d. Actual revenue is higher than budgeted revenue.
e. Actual revenue is lower than budgeted revenue.

Answers

Answer:

d. Actual revenue is higher than budgeted revenue.

Explanation:

When the Actual income/revenue/benefit is higher than the budgeted/estimated income/revenue/benefit, the variance will be favorable.  

When the Actual income/revenue/benefit is lower than the budgeted/estimated income/revenue/benefit, the variance will be unfavorable.  

When the Actual expense/cost/loss is higher than the budgeted/estimated expense/cost/loss, the variance will be unfavorable.

When the Actual expense/cost/loss is lower than the budgeted/estimated expense/cost/loss, the variance will be favorable.

a.

As the actual cost incurred is higher than the cost estimated, then the variance in both costs is unfavorable.

b.

As the actual Income earned is lower than the income estimated, then the variance in both incomes is unfavorable.

c.

As the actual expense incurred is higher than the expense estimated, then the variance in both expenses is unfavorable.

d.

As the actual revenue incurred is higher than the revenue estimated, then the variance in both revenues is favorable.

e.

As the actual revenue earned is lower than the revenue estimated, then the variance in both revenues is unfavorable.

The following items may appear on a bank statement: 1. NSF check 2. EFT Deposit 3. Service charge 4. Bank correction of an error from recording a $300 deposit as $30. Indicate whether the item would appear as debit or credit memo on the bank statement and whether the item would increase or

Answers

Answer:

1. NSF check

- Appears on the Bank Statement as: Debit Memo

- Decreases the Balance of the Company's Bank Account

2. EFT Deposit

- Appears on the Bank Statement as: Crediit Memo

- Increases the Balance of the Company's Bank Account

3. Service charge

- Appears on the Bank Statement as: Debit Memo

- Decreases the Balance of the Company's Bank Account

4. Bank correction of an error from recording a $300 deposit as $30

- Appears on the Bank Statement as: Debit Memo

- Increases the Balance of the Company's Bank Account

The Anti-Trust Department also monitors cartels within the United States. As long as they don't control more than 40 percent of the market, then the Anti-Trust Department will leave them alone.

a. Investigating cartels is a responsibility of the Federal Reserve Bank.
b. This is a true statement.
c. This statement is false.
d. The US. Anti-Trust Department does not investigate cartels in America

Answers

Answer:

c. This statement is false.

Explanation:

Anti-Trust Department is the department in the united states that could enforced the anti-trusted law. They have the right to investigate onto the collusion, this could harm the competition that could lead the welfare loss

Since large share could be considered so it should be controlled and investigated

Therefore the given statement is false

Terry estimates that the costs of insurance, license, and depreciation to operate his car total $460 per month and that the gas, oil, and maintenance costs are 34 cents per mile. Terry also estimates that, on average, he drives his car 2,000 miles per month. Required: a. How much cost would Terry expect to incur during July if he drove the car 1,534 miles

Answers

Answer:

Total cost= $984.62

Explanation:

Giving the following information:

Fixed cost= $460

Unitary variable cost= $0.34 per mile

Miles driven= 1,534

First, we need to establish the total cost formula:

Total cost= fixed cost + unitary variable cost*number of units

Total cost= 460 + 0.34*x

x= number of miles

Now, the total cost for the month:

Total cost= 460 + 0.34*1,543

Total cost= $984.62

Cary Inc. reported net credit sales of $300,000 for the current year. The unadjusted credit balance in its Allowance for Doubtful Accounts is $500. The company has experienced bad debt losses of 1% of credit sales in prior periods. Using the percentage of credit sales method, what amount should the company record as an estimate of Bad Debt Expense?
a) $2,500
b) $3,000
c) $2,980
d) $3,200

Answers

Answer: b. $3,000

Explanation:

The company's bad debt for the current year is said to be 1% of the credit sales because this is the usual rate for the past periods.

The bad debt expense for this year is therefore:

= Bad debt percentage * Credit sales

= 1% * 300,000

= $3,000

This will then be posted to the Allowance for Doubtful Accounts.

Corris Co. accumulates the following data concerning a mixed cost, using miles as the activity level. Miles Driven Total Cost January 10,000 $17,000 February 8,000 13,500 March 9,000 14,400 April 7,000 12,500 Compute the variable and fixed cost elements using the high-low method. (Round variable cost to 2 decimal places, e.g. 15.25.)
Variable cost $ ______ per mile
Fixed cost $ ______

Answers

Answer:

Variable cost per unit= $1.5

Fixed costs= $2,000

Explanation:

Giving the following information:

Miles Driven Total Cost

January 10,000 $17,000

February 8,000 13,500

March 9,000 14,400

April 7,000 12,500

To calculate the variable and fixed costs under the high-low method, we need to use the following formula:

Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)

Variable cost per unit= (17,000 - 12,500) / (10,000 - 7,000)

Variable cost per unit= $1.5

Fixed costs= Highest activity cost - (Variable cost per unit * HAU)

Fixed costs= 17,000 - (1.5*10,000)

Fixed costs= $2,000

Fixed costs= LAC - (Variable cost per unit* LAU)

Fixed costs= 12,500 - (1.5*7,000)

Fixed costs= $2,000

An important sustainability issue that has received much more scrutiny in recent years is the: focus on adequate inventory levels. reduction in packaging waste by using alternate materials. effort to move warehouse storage closer to consumers. emphasis on materials handling and warehouse design. none of the above

Answers

Answer:

reduction in packaging waste by using alternate materials.

Explanation:

An important sustainability issue that has received much more scrutiny in recent years is the reduction in packaging waste through the use of alternative materials. You can see this happening through new laws that prohibit the use of plastic bags in supermarkets and plastic drinking straws, for example.

There are several companies that seek the use of biodegradable packaging, even if these are not provided for by law. Companies seek to adopt sustainable actions in their processes to demonstrate to their stakeholders that they follow ideal standards of environmental preservation and social awareness. This is a positive type of marketing for companies, as the population is more aware and wants to consume more from environmentally responsible companies.These companies then become more valued by their consumers and consequently more competitive and well positioned in the market

A firm operated at 80% of capacity for the past year, during which fixed costs were $198,000, variable costs were 66% of sales, and sales were $1,082,000. Operating profit was a.$367,880 b.$714,120 c.$169,880 d.$135,904

Answers

Answer: $169,880

Explanation:

Operating profit for a company is simply its sales less its fixed costs and variable costs:

Operating profit = Sales revenue - Variable costs - Fixed costs

Variable costs:

= 66% * 1,082,000

= $714,120

Operating profit:

= 1,082,000 - 714,120 - 198,000

= $169,880

Item2 1 points Time Remaining 59 minutes 39 seconds00:59:39 Item 2 Time Remaining 59 minutes 39 seconds00:59:39 Crimson Inc. recorded credit sales of $755,000, of which $500,000 is not yet due, $180,000 is past due for up to 180 days, and $75,000 is past due for more than 180 days. Under the aging of receivables method, Crimson Inc. expects it will not collect 5% of the amount not yet due, 19% of the amount past due for up to 180 days, and 28% of the amount past due for more than 180 days. The allowance account had a debit balance of $2,800 before adjustment. After adjusting for bad debt expense, what is the ending balance of the allowance account

Answers

Answer:

$83,000

Explanation:

The computation of the ending balance of the allowance account is given below:

Given that

Accounts receivable not yet due be $500,000

So, the bad debt for the same should be

= 5% of $500,000

= $25,000

Accounts receivable due for upto 180 days be $180,000

So, the bad debts for the same should be

= 19% of $180,000

= $34,200

Accounts recievable due for more than 180 days be $75,000

So, the bad debts for the same should be

= 28% of $75,000

= $21,000

Now  

Ending balance of Allowance aoount  is

= $2,800 + $25,000 + $34,200 + $21,000

= $83,000

The following information is available for a company's utility cost the estimated variable cost per machine hour is:_____.
Month Machine hours Utility cost
January 950 $5,500
February 1,850 $7,000
March 2,500 $8,100
April 650 $3,420

Answers

Answer:

Variable cost per unit= $2.53

Explanation:

Giving the following information:

Month Machine hours Utility cost

January 950 $5,500

February 1,850 $7,000

March 2,500 $8,100

April 650 $3,420

To calculate the unitary cost per machine hour, we need to use the high-low method:

Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)

Variable cost per unit= (8,100 - 3,420) / (2,500 - 650)

Variable cost per unit= $2.53

Suppose real GDP is forecasted to grow by 1.881.88 %, the velocity of money has been stable, and the Fed announces an inflation target of 2.502.50 %. What is the largest money growth rate the Fed could implement and still achieve its inflation target

Answers

Answer: 4.38%

Explanation:

Use the Quantity Theory of Money to find the growth rat:

MV = PY

ΔMoney supply + ΔVelocity = ΔPrice level + ΔEconomic output or GDP

Velocity is stable so is 0.

ΔMoney supply + 0 = 2.50% + 1.88%

ΔMoney supply = 4.38%

Sarbanes-Oxley Act requires which of the following:

a. An effective internal control
b. Light penalties for violators
c. Auditors must evaluate internal controls
d. Auditor's work overseen by Public Accounting Board

Answers

Answer:

The correct answer is the option A: An effective internal control.

Explanation:

To begin with, the name of "Sarbanes-Oxley Act" refers to the well known United States federal law whose main purpose is to set new requirements, or at least expand them, regarding the boards and management areas of public companies of the US. It was enacted in 2002 due to the various scandals regarding the accounts of companies like Enron back then. Therefore that the bill contains itself eleven sections where most of them are refered specifically to the public's responsabilities that the board of directors of the public companies have. As well as the criminal penalties that they can face in the case of breaking the law.

Answer:

a. An effective internal control
c. Auditors must evaluate internal controls

Explanation:

SOX requires managers and auditors whose stock is publicly traded to have an effective internal control system, auditors must evaluate internal controls, violators may receive harsh penalties (not light penalties), and auditors’ work is overseen by Public Company Accounting Oversight Board (PCAOB) (not by the Public Accounting Board).

Newton Corporation was organized on January 1, 20X7. On that date, it issued 200,000 shares of its $10 par value common stock at $15 per share (400,000 shares were authorized). During the period January 1, 20X7, through December 31, 20X9, Newton reported net income of $750,000 and paid cash dividends of $380,000. On January 5, 20X9, Newton purchased 12,000 shares of its common stock at $12 per share. On December 31, 20X9, 8,000 treasury shares were sold at $8 per share. Newton used the cost method of accounting for treasury shares. What is the total stockholders' equity of Newton as of December 31, 20X9

Answers

Answer:

$3,290,000

Explanation:

Calculation to determine total stockholders' equity of Newton as of December 31, 20X9

200,000 shares issued for $15$3,000,000

(200,000 shares* $15)

Add Net income $750,000

Less Dividends ($380,000)

Less Purchased 12,000 treasury shares at $12 ($144,000)

(12,000 treasury shares*$12)

Add Decrease in treasury stock account $96,000

(8,000 shares *$12)

Less Decrease in additional paid-in capital ($32,000)

[(8,000 shares *$12)-(8,000 shares *$8])

Total Stockholders’ equity $3,290,000

Therefore total stockholders' equity of Newton as of December 31, 20X9 is $3,290,000

Gross Private Domestic Investment $1,593
Personal Taxes 1,113
Transfer Payments 1,683
Taxes on Production and Imports 695
Corporate Income Taxes 218
Personal Consumption Expenditures 7,304
Consumption of Fixed Capital 1,393
US Exports 1,059
Dividends 434
Government Purchases 1,973
Net Foreign Factor Income 10
Undistributed Corporate Profits 141
Social Security Contributions 748
US Imports 1,483
Statistical Discrepancy 50


Refer to the accompanying national income data (in billions of dollars). Corporate profits are equal to
Multiple Choice
$793.
$702.
$575.
$444.

Answers

Answer: $793 billion

Explanation:

Following the information provided in the question, the corporate profit will be calculated as:

Undistributed corporate profits = 141

Add: Dividend = 434

Add: Corporate income taxes = 218

Corporate profit = $793

Therefore, the corporate profit is $793 billion

The Diamond Outlet has current earnings per share of $1.96 and an expected earnings growth rate of 2.2 percent. The required return on the stock is 13 percent and the current book value per share is $12.70. What is the current market value of this stock

Answers

Answer:

the current market value of this stock is $15.96

Explanation:

given

current earnings = $1.96 per share

growth rate = 2.2 percent

return on the stock = 13 percent

current book value = $12.70 per share

solution

first we get here return on equity that is

return on equity = [ current earning per share × ( 1 + growth ) ] ÷ book value per share     ....................1

return on equity = [tex]\frac{1.96 + (1+0.022)}{12.70}[/tex]  

return on equity =15.77 %

and

now we get here payout ration that is

growth rate = retention ration × ROE      ....................2

put here value

2.2% = (1 - payout ratio ) × 15.77

payout ratio  = 86.05 %

and

now we get here current dividend per share that is

current dividend per share = current earning per share × payout ratio  ...........3

put here value

current dividend per share = 1.96 × 86.05 %

current dividend per share = $1.6865

and

now we get here current market value  

current market value  =  [ current dividend per share × ( 1 + growth ) ] ÷ [ required return - growth rate]     ....................1

current market value  = [Text]\frac{1.6865 \times (1+0.022)}{0.13-0.022}[text]

current market value  = [tex]\frac{1.6865 \times (1+0.022)}{0.13-0.022}[/tex]

current market value = $15.96

__________ is a risk-based strategic assessment and planning technique used primarily for security but which also can be used for disaster recovery planning purposes.

Answers

Answer: Octave risk assessment

Explanation:

Operationally Critical Threat, Asset, and Vulnerability Evaluation (OCTAVE) risk assessment is is simply a self-directed approach whereby the employees in an organization take responsibility and set up the security strategy of the organization.

It's a risk-based strategic assessment and planning technique used primarily for security but which also can be used for disaster recovery planning purposes. In this case, with the knowledge of the employees, the team defines the state of security in the organization, identify the risks and then sets a security strategy.

Other Questions
how did the twenty-sixth amendment address concerns about age discriminations VOCABULARIO 1 Las partes del cuerpo5-1 Con qu parte del cuerpo? Complete the sentences with the appropriate parts ofthe body. Follow the model.MODELO Hablo con la boca.1.Dibujo con2.Pienso con3.Camino con4.Escucho con5.Miro con6.Como con7.Respiro con8. Escribo mensajes de texto con find x on this special right triangle, 45 is not an option!!!! which of the statement is use to skip the loop and continue woth the next iteration ? Write a paragraph explaining how theme develops in the story.Write a topic sentence that mentions the theme, title, and author.Then follow your graphic organizer and write your ideas about how protagonist, antagonist, conflict, falling action and resolution, mood, and setting develop in the story.Be sure to include the theme of the story.End with a sentence that restates your idea about the theme. The NestRandall squinted up through the trees, trying to gauge the time, but gave up quickly. He should have paid attention when his father taught the family to read the position of the sun. He should have paid attention, too, before sneaking off this morning on his first solo hike, forgetting the whistle his mother stressed he always bring.He pictured his parents now at their camp beneath the tree with the eagles nest, wondering where he was. Randall was wondering the same thing. Lost and out of food, he feared he had but a few hours before darkness closed in, trapping him in the bitter cold with the creatures of the night.He closed his eyes to fight back tears, when he heard it in the distance. Water! His fathers words came flowing into his mind; one tip he actually remembered. If youre ever lost, find a river and follow it.In a flash, he was on his feet, scaling fallen trees, tearing through brush, frantically following the sound. The sky grew darker, but the noise grew louder, and Randall, tired and scared, forged ahead until he found it. He reached the river bank and was mulling his next move when a sudden splash caught his eye.A majestic eagle rose from the water, soaring skyward with a freshly caught fish in its talons. Could it be the same eagle nested above his camp? It glided triumphantly into a high nest a short distance away, eager to greet its family. Randall smiled, equally triumphant, eager to do the same as he followed the eagles flight.In the distance, he saw his mother, his whistle clutched in her hand. the total population of a village is 3540 out of which 2065 are male find the ratio of males to female Cloze test without clues (A Modern Library)A modern library, with some exception is regarded as (a) ____ service institution. Its aim is to enable the (b) ____ to make the most effective use of the resources and services of the (c) ____. This type of library acquires materials, processes it, and makes it available for use rather than (d) ____. It allows open (e) ____ to its collection and provides service to its users. It is expected to (f) ____ potential users into habitual users. A habitual user is (g) ____, who goes to a library regularly and use the library as a source of (h) ____ in order to convert potential users (i) ____ habitual users, it is essential to (j) ____ desired kind of contact between the user and the document. I conducted a poll and asked 1012 students how many books they read last year. The data indicates x = 12.1 books and s = 16.6 books. Construct a 90% confidence interval for the number of books the students read. Z = 1.645 In this unit, you learned about the development of the U.S. government, including the basic ideals on which the nation was founded. What are some of the foundational ideals on which our government was based? How are these ideas reflected in our Constitution? Finally, how do you see these ideas reflected in the nation today? Do you think our modern government lives up to the democratic ideas supported by the Founders? Be sure to use specific facts and examples from the course to support your answer. What two numbers add to 13 and multiply to -48? please help me with this trigonometric ratio/terminal arm question, giving brainliest! Steve thinks he can drive legally 30 minutes after he drinks 5 beers. The legal limit is BAC = 0.08. Give a 90% prediction interval for Steves BAC. Can he be confident he wont be arrested if he drives and is stopped? A company is designing a product layout for a new product. It plans to use this production line eight hours a day in order to meet projected demand of 480 units per day. The tasks necessary to produce this product are: 8. You are writing a formal business letter about the need to change a school rule.Which of the following is most likely your audience and purpose?friends; to entertainadministrators; to persuadechildren; to instructparents; to convince Which of the following is a monomial? Emile wants to lay a garden around his restaurant. The restaurant is in the shape of a square with side length of 15 feet. What is the length of the garden required? I just need to find that last box guys please help me solve this If the amount of waking time 4 year old children spend with their fathers each day is 42 minutes while the daily waking time spent in daycare is 6 hours, what is the ratio of time with father to time in daycare? Lori purchased a home for $250,000 with an additional $5,000 in related purchase costs and then added a garage at a cost of $25,000. She sold the home 10 years later for $575,000 and paid $35,000 in selling costs. She will pay capital gains tax on how much? $10,000 $260,000 $575,000 Zero Pls help I literally am crying I dont understand ):