Chester's Balance Sheet has $57,976,422 in equity. Further, the company is expecting $3,000,000 in net income next year. Assuming no dividends are paid and no stock is issued, what would their Book Value be next year

Answers

Answer 1

Answer:

Chester's Book Value would be $60,976,422 next year.

Explanation:

a) Data and Calculations:

Equity = $57,976,422

Expected net income = $3,000,000

If no dividends are paid and no stock is issued, the expected net income will be equal to the Retained Earnings for the next period.

Therefore, the book value or equity value of Chester's balance sheet for the next year will be the addition of the net income of $3,000,000 to the equity balance of $57,976,422.

This will total $60,976,422 ($57,976,422 + $3,000,000).

b) Chester's book value is the net asset value and can be calculated as total assets minus liabilities.


Related Questions

Big Valley has a times interest earned ratio that is _________, which indicates that Big Valley has _________ long-term insolvency risk than the typical firm in the industry.

a. 4; the same
b. 3.91; less
c. 3.91; more
d. 4.58; more
e. 4.58; less

Answers

Answer:

C. 3.91; more

Explanation:

the first part of the question is missing. It involved several aspects of Big Valley including its current and quick ratios, ROE and how they compare to the industry's average (they are generally lower than the industry's average).

This particular question refers to times interest earned ratio = EBIT / interest expense = 3.91, and how it compares to the industry's average (it is higher than the industry's average).

Since Big Valley performs poorly against the industry's average when comparing the other 3 metrics, but performs very well in the times interest ratio, it means that Big Valley has a low debt ratio. A low debt ratio results in lower financial leverage and lower interest expense.

Reginald owns a grocery and his clerks are on strike. Reginald is trying to operate the store with the help of his manager, but ten of the striking clerks are crowding near the store entrance with large picket signs. If Reginald asks you what can be done, your best answer would be for Reginald to:_______

a. seek a rescission that will return the clerks to their status quo.
b. merge law and equity.
c. seek a decree of specific performance.
d. seek an injunction.
e. hire Norris, Stallone and Segal

Answers

Answer:

merge law and equity

Explanation:

In resolving labour related or welfare issues the best way to do so will be to hear the grievances of the striking workers and try to find an equitable solution to the situation.

However if all reasonable avenues have been pursued and they still don't want to comply, then legal measures can be taken to make them work.

In this scenario Reginald should call the striking workers and try to come to an equitable solution for the business and workers where there will be a win-win.

If this does not work he can use the law to compel them to comply.

A stock is expected to pay a dividend of $0.50 at the end of the year (i.e., D1 = $0.50), and it should continue to grow at a constant rate of 9% a year. If its required return is 12%, what is the stock's expected price 1 years from today? Round your answer to two decimal places. Do not round your intermediate calculations.

Answers

Answer:

P1 = $18.16667 rounded off to $18.17

Explanation:

Using the constant growth model of dividend discount model, we can calculate the price of the stock today. The DDM values a stock based on the present value of the expected future dividends from the stock. The formula for price today under this model is,

P0 = D1 / (r - g)

Where,

D1 is dividend expected for the next period /year g is the growth rate r is the required rate of return or cost of equity

To calculate the price of the stock today (P0), we use the dividend expected for the next period (D1). Similarly, to calculate the price of the stock one year from today (P1), we will use D2.

P1 = 0.5 * (1+0.09)  /  (0.12 - 0.09)

P1 = $18.16667 rounded off to $18.17

the best answer for the question . the population of a small island nation is 50,000 people and their real GDP is $ 500,000,000 , then what's the real GDP per capita

Answers

I am not sure what the questions is can you explain it more
Please

Patrick took a loan of $50,000 with a repayment period of five years from a bank to start his own business. Every month he has to pay the bank $900 to repay the loan. What type of credit is demonstrated in this scenario? A. unsecured credit B. secured credit C. revolving credit D. installment credit

Answers

Answer:

b

Explanation:

Answer:

D. Installment Credit

Dr. North is a busy doctor who also has three kids. Based only on this information, which source of stress is she most likely suffering from?

a. individual task demands
b. demands created by individual differences
c. work-life conflict
d. group demands
e. organizational demands

Answers

Answer:

c. work-life conflict

Explanation:

The kind of stress she is going through bis the work-life crisis. As a doctor her job is very demanding and as a mother to three kids her role at home is also likely to cause stress.

She is suffering from this because her job as a doctor demands that she attends to different patients daily, Which causes her to be exhausted and as a mom she is having difficulty paying much attention to her children. Thereby making her stressed.

What methods can you use for setting the price? What tools are available for measuring the impact on your price decision?

Answers

Answer:

What methods can you use for setting the price? What tools are available for measuring the impact on your price decision?

In marketing we call it the 4 P's

1) Product

2) Price

3) Promotion

4) Place (location)

Jeannie plans to deposit $6,000 in a money market sinking fund at the end of each year for the next four years. What is the amount that will accumulate by the end of the fourth and final payment if the sinking fund earns 9% interest

Answers

Answer:

$27,439

Explanation:

Calculation for the amount that will accumulate by the end of the fourth and final payment

First step is to find the FV of an ordinary annuity of $1 using the table

FV=?

Number of years= 4

interest= 9%

Hence,

FV of of an ordinary annuity of $1 =4.5731

Now let calculate the that will accumulate by the end of the fourth and final payment

End of the fourth and final payment Accumulated amount = $6,000 × 4.5731

End of the fourth and final payment Accumulated amount = $27,439

Therefore the amount that will accumulate by the end of the fourth and final payment will be $27,439

Lux Company uses a periodic inventory system. The company started the month with 20 lamps in its beginning inventory that cost $30 each. During the month, Lux purchased 80 additional lamps for $31 each. At the end of the month, Lux counted its inventory and found that 25 lamps remained unsold. If Lux uses the weighted average cost method, its cost of goods sold for the month is:________

Answers

Answer:

cost of goods sold = $2,310

Explanation:

beginning inventory 20 units at $30 each = $600

purchases during the month = 80 units at $31 each = $2,480

ending inventory = 25 units

using the weighted average cost method, each unit will be valued at ($600 + $2,480) / (20 + 80) = $3,080 / 100 units = $30.80

ending inventory = 25 units x $30.80 = $770

cost of goods sold = (100 - 25) x $30.80 = $2,310

A company had a beginning balance in retained earnings of $43,900. It had net income of $6,900 and declared and paid cash dividends of $5,850 in the current period. The ending balance in retained earnings equals:________

a. $5,850
b. $12,750
c. $42,850
d. $44,950
e. $56,650

Answers

Answer: d. $44,950

Explanation:

Dividends are to be paid from Retained earnings so the ending retained earnings are;

= Beginning retained earnings + Net income - dividends

= 43,900 + 6,900 - 5,850

= $44,950

On February 22, Brett Corporation acquired 210 shares of its $3 par value common stock for $25 each. On March 15, the company resold 62 shares for $28 each. What is true of the entry for reselling the shares

Answers

Answer:

Credit Additional Paid in Capital $186

Explanation:

Preparation of the true of the Journal entry for reselling the shares

Dr Cash 1,736

(62 x $28)

Cr Treasury Stock 1,550

(62x $25)

Cr Additional Paid-in Capital 186

(62 x $3)

Therefore the journal entry to reissue the shares for Brett Corporation On February 22 would be:

Credit Additional Paid in Capital $186

The company you work for has decided to double stock their 1200 head WF curtain-sided barns. What changes/adjustments would you make to the ventilation controller settings to accommodate the extra pigs? What possible deficiencies could be created by double stocking?

Answers

Answer:

Changes to make in ventilation controller settings to accomodate the extra pigs

More width area of ventilation is required

Room temperature should be maintained.2-3 F

Ceilings should not be there as by double stockings more pigs be there so no ceilings provide more area to ventilate.

Deficiencies created by double stocking

Decrease on ADG by increase split put age,( p< 0.00)

Lower ADFI also by 7%

Growth rate decreased to 10 wk on after weaning process.

Whistle Stop pays a constant annual dividend of $4 on its stock. The company will maintain this dividend for the next 3 years and will then cease paying dividends forever. What is the current price per share if the required return on this stock is 15.6 percent?

a. $10.38
b. $9.52
c. $9.04
d. $9.28
e. $10.02

Answers

Answer:

P0 = $9.04279 rounded off to $9.04

Option c is the correct answer

Explanation:

Using the the dividend discount model, we calculate the price of the stock today. It values the stock based on the present value of the expected future dividends from the stock. To calculate the price of the stock today, we will use the following formula,

P0 = D1 / (1+r)  +  D2 / (1+r)^2  +  D3 / (1+r)^3

Where,

r is the required rate of return

P0 = 4 / (1+0.156)  +  4 / (1+0.156)^2  +  4 / (1+0.156)^3

P0 = $9.04279 rounded off to $9.04

A firm have an inventory turnover of 5 times a year on a cost of goods sold of $800 000.if the firm improves the inventory turnover to 8 times a year while the cost of goods sold remains the same, which of the following statement is true?
A)$100,000 is additionally invested in purchasing stock
b)$160,000 is released into working capital
c)$60,000 is additionally invested in purchasing stock
d)$60,000 is released into working capital

Answers

Answer:

d) $60,000 is released into working capital

Explanation:

Inventory turnover is the number of times that a firm buys and sells inventory. A high inventory means that the company sells its stock many times in a year.

the formula for inventory turnover ratio

=Cost of goods sold/ average inventory

If a firm has COGS of $800,000 and an inventory turnover of 5, then the average inventory will be

=$800,000 /5

=$160,000

If the firm improves its  turnover to 8, then the average inventory will be

=$800,000/8

=$100,000

The firm average inventory will  $100,000 as opposed to $160,000 previously.

$60,000  will be released to working capital.

The business analyst for Video Sales, Inc. wants to forecast this year's demand for DVD decoders based on the following historical data: Year Enrollments 5 Years ago 900 4 Years ago 700 3 Years ago 600 2 Years ago 500 Last Year 300 What is the forecast for this year using a three-year weighted moving average with weights of 0.5, 0.3, and 0.2?a) 163.
b) 180.
c) 300.
d) 420.
e) 510.

Answers

Answer:

d) 420

Explanation:

In three-year weighted moving average with weights of 0.5, 0.3, and 0.2, the forecast can be calculated using the following formula

Forecast(This year) = 0.5*Demand(last year) + 0.3*Demand(2 years ago) + 0.2*Demand(3 years ago)

Forecast(This year) = 0.5*300 + 0.3*500 + 0.2*600

Forecast(This year) = 150 + 150 + 120

Forecast(This year) = 420

Issuing a $1,000 par value bond with a yield to maturity of 10%. The company is in a 35 percent marginal tax bracket. What will be the firm’s after-tax cost of debt on the bond?

Answers

Answer:

6.50%

Explanation:

The after-tax cost of the debt is the yield to maturity after having deducted the tax shield which is computed using the formula below:

after-tax cost of debt=pretax cost of debt*(1-tax rate)

pretax cost of debt=yield to maturity=10%

tax rate=35%

The after-tax cost of debt=10%*(1-35%)

The after-tax cost of debt=10%*65%

The after-tax cost of debt=6.50%

1. When has your level of performance been directly affected by your motivation?

Answers

Answer:

Softball

Explanation:

I hate doing softball now so i dont preform as well

Motivation is important to a business and its employees. It helps an individual achieve personal goals. A motivated individual will have greater job satisfaction, heightened performance and a willingness to succeed. This is enjoyed by the wider team and the overall organization.

What term describes a ban or restriction on trade with another country?

Answers

Answer:

Embargo is the term which is used to describe the ban or restriction on trade with another country. Explanation: Embargo is an official suspension of trade with other countries. Under this act there is a restriction of import and export of products between the countries due to specific reason.

The term that describes a ban or restriction on trade with another country is called embargo.

What is embargo?

Embargo refers to an official ban on trade or other commercial activity with particular in the country. It is an official suspension of trade with other countries.

Under this act(embargo), there is a restriction of import and export of products between the countries due to specific reason.

Embargo can be placed on

Specific categories of goods.Scientific and technical information.Transport and other services,

Therefore, embargo is the term that describes a ban or restriction on trade with another country.

Learn more about embargo here : https://brainly.com/question/3795030

Which of the following is a cost of not carrying enough inventory?

a. possible worker layoffs.

b. customer disappointment

c. all of these

d. lost sales.​

Answers

Answer:

c

Explanation:

if you don't have enough to sell you lose sales.

You also lose selection and can also not have what a customer wants so that would leave in customer disappointment.

then you could also not have alot of money to pay your workers which would possibly result in worker layoffs

Suppose Value Home and Garden Imports issued 400,000 shares of $0.10 par common stock at $4 per share. Which journal entry correctly records the issuance of this stock?


a. Debit Credit
Common Stock—$0.10 Par Value 1,600,000
Cash 40,000
Paid-ln Capital in Excess of Par—Common 1,560,000

b.
Common Stock—$0.10 Par Value 1,600,000
Cash

c.
Cash 1,600,000
Common Stock—$0. 10 Par Value 40,000
Paid-ln Capital in Excess of Par—Common 1,560,000

d.
Cash 1,600,000
Common Stock—$0. 10 Par Value 1,600,000

Answers

Answer:

The correct general entry is,

Cash                                                 1,600,000 Dr

Common Stock-$0.10 Par value                     40000 Cr

Paid-ln Capital in Excess of Par—Common    1,560,000 Cr

Option c is the correct answer

Explanation:

The issuance of stock will mean an inflow of cash to the company as a result. The cash received will be equal to the number of shares issued multiplied by the value at which they are issued.

Thus, cash received will be = 400000 * 4  =  $1600000

As the asset is increasing, the cash will be debited.

On the other side of the transaction, the issuance of stock is always recorded at the par value in the common stock account and any amount received in excess of par value is credited to the Paid-in-Capital in excess of par-Common Stock account.

Thus, Common stock will be credited by = 400000 * 0.1 = $40000

The remaining = 1600000 - 40000 = 1560000 will be credited to Paid-in-Capital in excess of par-Common Stock account.

Ratios are used in financial analysis because:

a. different companies use different accounting methods.
b. raw data is difficult to evaluate across time and companies.
c. ratios are complex analysis tools.

Answers

Answer:

b. raw data is difficult to evaluate across time and companies.

Explanation:

There are various ratio that company determines like liquidity ratios, solvency ratios, etc

It helps the company to analyze its financial position, performance and profitability so that the company is able to take the goods decisions that help the company to accomplish its goals and objectives

Now as per the given option, the option b is correct as the raw data is difficult to analyze and evaluate between the time period and the companies

Therefore the correct option is b.

Company BFM has several bond issues outstanding, each making semiannual interest payments. The bonds are listed below. If the corporate tax rate is 15%, what is the aftertax cost of debt?

Bond Coupon Rate Price Quote Maturity Face Value
1 7.5% 105.0 5 years $20,000,000
2 5.8 95.4 8 years 40,000,000
3 7.7 103.8 15 1/2 years 45,000,000
4 8.1 105.7 25 years 60,000,000

Answers

Answer:

bond 1:

YTM = {coupon + [(face value - market value) / n]} / [(face value + market value) / 2]

YTM = {750,000 + [(20,000,000 - 21,000,000) / 10]} / [(20,000,000 + 21,000,000) / 2]

YTM = 650,000 / 20,500,000 = 3.17 x 2 = 6.34%

after tax cost of debt = 6.34% x (1 - 15%) = 5.39%

bond 2:

YTM = {coupon + [(face value - market value) / n]} / [(face value + market value) / 2]

YTM = {1,160,000 + [(40,000,000 - 38,160,000) / 16]} / [(40,000,000 + 38,160,000) / 2]

YTM = 1,275,000 / 39,080,000 = 3.26 x 2 = 6.53%

after tax cost of debt = 6.53% x (1 - 15%) = 5.55%

bond 3:

YTM = {coupon + [(face value - market value) / n]} / [(face value + market value) / 2]

YTM = {1,732,500 + [(45,000,000 - 46,710,000) / 31]} / [(45,000,000 + 46,710,000) / 2]

YTM = 1,677,339 / 45,855,000 = 3.66 x 2 = 7.32%

after tax cost of debt = 7.32% x (1 - 15%) = 6.22%

bond 4:

YTM = {coupon + [(face value - market value) / n]} / [(face value + market value) / 2]

YTM = {2,430,000 + [(60,000,000 - 63,420,000) / 50]} / [(60,000,000 + 63,420,000) / 2]

YTM = 2,361,600 / 61,710,000 = 3.83 x 2 = 7.65%

after tax cost of debt = 7.65% x (1 - 15%) = 6.51%

Joe owns a business renting out properties as apartments. He is hoping to purchase an old building to create new apartment homes. Before Joe is able to purchase the building, he must work out a deal with the current owner, who has decided to sell the property. Use the drop-down menu to complete each statement. Based on the information in the passage, it is most likely that Joe lives in a economy. The building that Joe is interested in purchasing would be considered .

Answers

Answer:

Joe lives in a mixed economy.

The building is a private property

Explanation:

A mixed economy allows individuals like Joe and companies to engage in commercial activities. It gives freedom to entrepreneurs to choose the type of business they wish to operate. Joe rents out apartments to clients. He and the client enters into a tenancy agreement, which suggests the presence of regulation. Consulting the owner of the property that he wishes to purchases shows there is an authority that regulates property transactions. A mixed economy gives buyers and sellers the freedom to do business but with regulation by a central authority.

The property that Joe wishes to buy is private property. It belongs to the seller and not to the public or government. Joe can only purchase a property and acquire its title if it is private property.

Answer:

1. mixed market

2. private property

nce Albert Canning PLC had a net loss of £18,137 on sales of £279,386. a. What was the company’s profit margin? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. In dollars, sales were $359,815. What was the net loss in dollars? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Answers

Answer:

Albert Canning PLC

a) Profit margin = -6.49%

b) The net loss in dollars = -$23,351.99

Explanation:

a) Data and Calculations:

Net loss = £18,137

Sales = £279,386

Profit margin = (Net loss)/Sales * 100

= -£18,137/£279,386 * 100

= -6.49%

b) Sales in dollars = $359,815

The net loss in dollars = $359,815 * -6.49%

= $23,351.99

c) The profit margin is expressed in percentage terms.  It depicts the relationship between the profit and the sales revenue.

William's accountant made an error, and the budget has been reduced from $3000 to $2500. William's profit will go down by:________

a. $625
b. $1350
c. $1650
d. $0

Answers

His profit will go down to A

When you listen, you are the___________ of the message.​

Answers

Answer:

reciever

Explanation:

when you listen you are the receiver and there after you should give the relevant feed back

it is not easy to rule India with only one government​

Answers

True ...........................

1. Which one of the following is considered a consumer fraud scheme?

a. Bait and switch.

b. Bait and catch.

c. Advertising.

d. Spam emails.


PLEASE ANSWER AS SOON AS POSSIBLE

Answers

Bait and switch is a “sales tactic that lures customers in with specific claims about the quality or low prices on items that turn out to be unavailable in order to upsell them on a similar, pricier item. It is considered a form of retail sales fraud.”

So I would go with A.

The result of inspection of samples taken over the past 11 days is given below. The sample size is 100 per day. Day 1 2 3 4 5 6 7 8 9 10Defectives 7 9 9 11 7 8 0 11 13 2What are the upper and lower control limits?

Answers

Answer:

UCL(p) = 0.157

LCL(p) = 0

Explanation:

Number of samples (n) = 10

Size of sample (n) = 100

We compute the defective rate P as below

P  = 7 + 9 + 9 + 11 + 7 + 8 + 0 + 11 + 13 + 2 / 10 * 100

P = 77 / 1000

p = 0.077

We derive σP / value of standard deviation of the sampling distribution as shown below

σP = √P * (1-P) / n

σP = √0.077 * (1 - 0.077) / 100

σP = √0.077 * 0.923/100

σP = √0.071071/100

σP = √0.00071071

σP = 0.02665

Now we calculate the Upper Control chart limit:

UCL(p) = P +Z*σP

UCL(p) = 0.077 + 3*0.02665

UCL(p) = 0.077 + 0.07995

UCL(p) = 0.15695

UCL(p) = 0.157

Now we calculate the Lower Control chart limit:

LCL(p) = P - Z*σP

LCL(p) = 0.077 - 3*0.02665

LCL(p) = 0.077 - 0.07995

LCL(p) = -0.00295 (Negative defect cannot go beyond Zero)

LCL(p) = 0

Sheffield Corp. traded machinery with a book value of $978480 and a fair value of $906000. It received in exchange from Ivanhoe Company a machine with a fair value of $1023780. Sheffield also paid cash of $102378 in the exchange. Ivanhoe’s machine has a book value of $978480. What amount of gain or loss should Sheffield recognize on the exchange (assuming lack of commercial substance)?

Answers

Answer:

Gain $72,480

Explanation:

Calculation for the amount of gain or loss that Sheffield should recognize on the exchange

Using this formula

Gain/Loss= Book value – Fair value

Let plug in the formula

Gain/Loss= $978,480 – $906,000

Gain=$72,480

Therefore the amount of gain or loss that Sheffield should recognize on the exchange will be $72,480

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