Homework Answers
Answer is $1.50
The Earnings per share of the company does not represent its market share price. Earnings per share are the net income of the firm expressed on a per share basis. The market share price of the firm is calculated based on Earnings per share multiplied by price earnings ratio. The closing share price in market, average price of share and analyst recommendation are all more subjective and hence Earnings per share is least subjective. So the answer is first option.
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Common shares of XYZ Co. closed on the TSX yesterday at $15. Over the past month,...
QUESTION 16 XYZ common stock sells for $15 and just paid a $2 dividend per share,...
QUESTION 16 XYZ common stock sells for $15 and just paid a $2 dividend per share, which is expected to grow at a rate of 5% indefinitely. You require a 20% rate of return. Should you buy the stock today if you expect to sell it in four years for $259 Yes No You'd be indifferent between buying the stock and not doing so Cannot be determined. Click Save and Submit to save and submit. Click Save All Answers to...
QS C-15 Equity method transactions LO P5 Rowan Co. purchases 100 common shares (40%) of JBI...
QS C-15 Equity method transactions LO P5
Rowan Co. purchases 100 common shares (40%) of JBI Corp. as a
long-term investment for $500,000 cash on July 1. JBI Corp. paid
$5,000 in total cash dividends on November 1 and reported net
income of $100,000 for the year.
(1) - (3) Prepare Rowan's entries to record the
purchase of JBI shares, the receipt of its share of JBI dividends
and the December 31 year-end adjustment for its share of JBI net...
Lan Co. had 250,000 shares of common stock issued and outstanding at January 1, 20X6. During...
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You purchased 500 shares of XYZ stock for $41.80 a share. You have received a total...
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20. On September 13, 2005, the shares of Best Buy Co. fell $5.14 to $45.22 on...
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#1 Van Buren, Inc., currently pays $2.24 per share in dividends on its common stock. Dividends...
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Problem 21-8 On December 31, 2020, before the books were closed, management and the accountant at...
Problem 21-8
On December 31, 2020, before the books were closed, management and
the accountant at Flanagan Inc. made the following determinations
about three depreciable assets.
1.
Depreciable asset A (building) was purchased on January 2,
2017. It originally cost $564,000 and the straight-line method was
chosen for depreciation. The asset was originally expected to be
useful for 10 years and have no residual value. In 2020, the
decision was made to change the depreciation method from
straight-line to double-declining-balance...
Complete Problems 13-2B, 13-3B and 13-4B on the proper tab. You can complete the problems in...
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Under Armour Ine, shares fell nearly 19% after the company confirmed it was the subject of...
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Under Armour Ine, shares fell nearly 199 after the company confirmed it was the subject of...
Under Armour Ine, shares fell nearly 199 after the company confirmed it was the subject of a federal investigation into its accounting practices. Executives declined on an earnings call Monday to provide details about the probe or explain why Under Armour hadn't previously disclosed its existence, even though they had been responding to document requests for more than two years. "We have been fully cooperating with these inquiries for nearly 2 years," Under Armour CFO David Bergman said. "We firmly...
QUESTION 16 XYZ common stock sells for $15 and just paid a $2 dividend per share, which is expected to grow at a rate of 5% indefinitely. You require a 20% rate of return. Should you buy the stock today if you expect to sell it in four years for $259 Yes No You'd be indifferent between buying the stock and not doing so Cannot be determined. Click Save and Submit to save and submit. Click Save All Answers to...
QS C-15 Equity method transactions LO P5
Rowan Co. purchases 100 common shares (40%) of JBI Corp. as a
long-term investment for $500,000 cash on July 1. JBI Corp. paid
$5,000 in total cash dividends on November 1 and reported net
income of $100,000 for the year.
(1) - (3) Prepare Rowan's entries to record the
purchase of JBI shares, the receipt of its share of JBI dividends
and the December 31 year-end adjustment for its share of JBI net...
20. On September 13, 2005, the shares of Best Buy Co. fell $5.14 to $45.22 on the New York Stock Exchange, a decline of 10.2%. The decline followed the release of its second quarter 2005 financial results. Best Buy is a large North American retailer of consumer electronics and appliances, with over 700 stores in the United States and Canada, includ- ing the Future Shop chain. Best Buy reported earnings of 37 cents per share, compared with 30 cents for...
#1 Van Buren, Inc., currently pays $2.24 per share in dividends on its common stock. Dividends are expected to grow at 7.00 % per year forever. If you require a 13.00 % rate of return (i.e., the discount rate) on this investment, what value would you place on a share of Van Buren common stock? Assume that the current dividend was just paid. Answer format: Currency: Round to 2 decimal places # 2 Bad Investment Incorporated has "promised" investors to...
Problem 21-8
On December 31, 2020, before the books were closed, management and
the accountant at Flanagan Inc. made the following determinations
about three depreciable assets.
1.
Depreciable asset A (building) was purchased on January 2,
2017. It originally cost $564,000 and the straight-line method was
chosen for depreciation. The asset was originally expected to be
useful for 10 years and have no residual value. In 2020, the
decision was made to change the depreciation method from
straight-line to double-declining-balance...
Complete Problems 13-2B, 13-3B and 13-4B on the proper tab. You can complete the problems in Excel and submit the Excel spreadsheet in Canvas or you can print out the Excel spreadsheet and complete by hand. You will then need to scan in your completed worksheets and submit those in Canvas. Each problem is worth 8 points. Problem 13-2B This problem focuses on journal entries for dividends and Treasury Stock. It also includes preparation of a statement of Retained Earnings...
Under Armour Ine, shares fell nearly 19% after the company confirmed it was the subject of a federal investigation into its accounting practices. Executives declined on an earnings call Monday to provide details about the probe or explain why Under Armour hadn't previously disclosed its existence, even though they had been responding to document requests for more than two years. "We have been fully cooperating with these inquiries for nearly 25 years, Under Armour CFO David Bergman said. "We firmly...
Under Armour Ine, shares fell nearly 199 after the company confirmed it was the subject of a federal investigation into its accounting practices. Executives declined on an earnings call Monday to provide details about the probe or explain why Under Armour hadn't previously disclosed its existence, even though they had been responding to document requests for more than two years. "We have been fully cooperating with these inquiries for nearly 2 years," Under Armour CFO David Bergman said. "We firmly...
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