Debt to assets ratio $1,202,134 (total debt) / $1,404,726 (total assets) = 87.4% B.) ROA is a measure of profitability or effectiveness of resource usage calculated by expressing a company’s net income as a percentage of total assets. As for Sepracor, its ROA is 4.5%. This means that Sepracor created 4.5 cents of earnings from each dollar of assets. The ROE for Sepracor is 33.07%, which means that 33.07 cents of assets are created for each dollar that was originally invested.
What is the expected dividend yield and expected capital gains yield? Explain the difference in the required return estimates from the ValueLine (see question 1a) to the WSJ price data. The company’s return on common stock using the constant growth model is 7.72%. The expected dividend yield is [pic]. The expected capital gains yield is the difference of the total yield, 7.72%, and the dividend yield of 2.22%, which give us 5.5% for the
. (TCO A) Which one of the following is an advantage of corporations relative to partnerships and sole proprietorships? (Points : 5) Reduced legal liability for investors Harder to transfer ownership Lower taxes Most common form of organization 2. (TCO A) The Dividends account _____. (Points : 5) is increased with a debit is decreased with a credit is not an expense account All of the above 3.
Week 8 : Final Week - Final Exam Page 1 1. (TCO C) Which of the following characteristics do intangible assets possess? (Points : 5) Physical existence Claim to a specific amount of cash in the future Long-lived Held for resale 2. (TCO C) The cost of purchasing patent rights for a product that might otherwise have seriously competed with one of the purchaser's patented products should be (Points : 5) charged off in the current period. amortized over the legal life of the purchased patent.
(Points : 5) | $50,000 $16,500 $25,500 $7,500 $5,000 | Question 3. 3. (TCO A) Under the equity method, when the company's share of cumulative losses equals its investment and the company has no obligation to fund such additional losses, which of the following statements is true? (Points : 5) | The investor should change to the fair-value method to account for its investment. The investor should report these losses as extraordinary items.
years. | | The step-by-step calculation is: P | = | S(1 + rt)-1 | | | = | 400,000(1 + 0.0892 x 0.24657534...)-1 | | | = | 400,000 x 0.97847883... | | | = | $391,391.53 | Rounded as last step | b)You are correct. When the first bill matures at time 90 days, the investor purchases a second bill. We must find the purchase price of the second bill. This can be displayed on a time line: | | | | | $P | $400,000 | | | | | | 0 | 90 | 180 | 270 | | | | | | | | | P | = | price | = | unknown | | S | = | Maturity value | = | $400,000 | | r | = | Simple interest rate (decimal) | = | 9.16 | 100 | | = | 0.0916 | | t | = | Time period (years) | = | 90 | 365 | | = | 0.24657534... years.
4. Give at least two examples of types of state taxes. (1.0 points) a) State income taxes b) Transaction taxes 5. What is a pay stub? (0.5 points) A pay stub is a record of the hours you’ve worked or your salary an vacation times and then also your final pay.
1. (TCO A) Which of the following is an advantage of the corporation relative to sole proprietorships and partnerships? (Points : 5) Simple to establish Lower taxes Unlimited personal liability of investors Easier to raise funds 2. (TCO A) Dividends _____. (Points : 5) represent an expense and are an operating activity represent an obligation and are an operating activity represent a distribution of earnings and are a financing activity represent an asset and are an investing activity 3.
Their profit margin is 6.2% and the common stockholder’s equity is 90.7%. These are very good numbers and they are giving their investors some return on their money or stocks. Kudler liquidity and solvency ratios provide that the company does have
AJ Davis Department Stores | Regression and Correlation Analysis | | Ryan McKinney 8/25/2013 | 1 - Scatterplot of Income ($1000) vs. Credit Balance ($) 2 - Line of Best Fit Income = -3.516 + 0.01193x 3 - Coefficient of correlation = .8005 This is a positive correlation because its value is close to 1. It is a good fit for the independent variable in question. 4 - Coefficient of determination √.8005 = .6408 Here the independent variable explains 64.08% of the independent variable. This figure provides for a decent regression model of the independent variable in question. 5 – Utility Test α = .05 Analysis of Variance Source DF SS MS F P Regression 1 27269711 27269711 85.65 0.000 Error 48 15283352 318403 Total 49 42553062 Ho: the regression model is not significant vs. Ha: the regression model is significant.