Quincy Martin Manufacturing has assets of $5 million and liabilities of $3 million. The company has also issued 400,000 shares of common stock. What is the company's book value per share? Select one: O a. $10.25 O b. $7.50 O c. $5 O d. $2.50

Quincy Martin Manufacturing has assets of $5 million and liabilities of $3 million. The company has also issued 400,000 shares of common stock. What is the company's book value per share? Select one: O a. $10.25 O b. $7.50 O c. $5 O d. $2.50

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter1: The Role Of Accounting In Business

Section: Chapter Questions

Problem 4SEQ: If total assets are $20,000 and total liabilities are $12,000, the amount of stockholders’ equity...

See similar textbooks

Related questions

Q: Rum Co has asked you to evaluate the following proposal. Rum Co is contemplating the purchase of a…

A: Free cash flow is that amount which is earned by the investor from the project. It is the net amount…

Q: Consider the following information on large-company stocks for a period of years. Large-company…

A: a. The arithmetic mean of the annual return is calculated without considering inflation. Therefore,…

Q: You have been given the following return information for a mutual fund, the market index, and the…

A: When the stability of an investor or fund manager to provide higher risk adjusted returns is…

Q: You are considering the purchase of 50 shares of Roney Industries common stock. Roney's dividends…

A: The dividend discount model will be used here. As per the dividend discount model the value of a…

Q: Olivier wants to buy a hot dog stand that will generate $118,000 per year forever. Because he needs…

A: Present Value today= (Annual Cash flows / Interest rate)/(1+Interest rate)^5

Q: You are evaluating a project for The Ultimate recreational tennis racket, guaranteed to correct that…

A: Cash flows refers to the series of payments made or received over the period of time. Cash flows can…

Q: Computech Corporation is expanding rapidly and currently needs to retain all of its earnings; hence,…

A: According to Gordon's growth model,P = whereP= stock priceD= dividend paidg= growth rater= required…

Q: An investment of $158397 is expected to generate an after-tax cash flow of $94000 in one year and…

A: CF0 = -$158397CF1 = $94000CF2 = $129000

Q: Stan and Alicia can invest $40000 in preffered stock A which pay a dividend of $2000 a year, payable…

A: The objective of this question is to calculate the after-tax Effective Annual Rate (EAR) of a…

Q: OpenSeas, Inc. is evaluating the purchase of a new cruise ship. The ship will cost $501 million and…

A: Here,Initial Investment is $501 millionAnnual Inflows is $70.7 millionTime Period is 20 yearsCost of…

Q: Yoko's aunt ask's her to to analyze Bond XYZ: Bond Face Value = $1000 Coupon = 12%, paid…

A: Current Yield of the bond is calculated by following formula:-Current Yield of the bond =

Q: Oregon Forest Products will acquire new equipment that falls under the five-year MACRS category. The…

A: NPV is also known as Net Present Value.. It is a capital budgeting technique which helps in decision…

Q: The YTM on a bond is the interest rate you earn on your investment if interest rates don’t change.…

A: As part b is incomplete i am going to solve the part A for please re-upload for the rest.A bond is…

Q: Suppose you have the information given in the following table for Company X. EBITDA Total value of…

A: The value of any asset or the company is its worth in currency in present terms. The value can be…

Q: What are the Sharpe and Treynor ratios for the fund? (Do not round intermediate calculations. Round…

A: The Sharpe ratio is a measure of an investment or portfolio's risk-adjusted performance. It assists…

Q: Total profit after commissions?

A: When an investor believes that a stock is overvalued, a short trade can be entered into. In this…

Q: Suppose that Gyp Sum Industries currently has the balance sheet shown below, and that sales for the…

A: The AFN refers to the funding that is required by the company for its operations to reach the…

Q: You are 30 years old today. You want to retire at the age of 55. You expect to live until age 90.…

A: Retirement planning is quite necessary and that should be done based on time value of money and…

Q: Big Rock Brewery currently rents a bottling machine for $55,000 per year, including all maintenance…

A: The process through which an entity analyzes and evaluates a project's profitability and decides on…

Q: You wish to start a business and will need a total of $50,000 to get started. You have $20,000…

A: Future Value = fv = $50,000Present Value = pv = $20,000Time = t = 5 Years Interest Rate = r = 12%

Q: Marvin, age 66, is retired and single. He earned the following income in 2022. To determine if any…

A: The objective of the question is to determine if any of Marvin's Social Security income is taxable.…

Q: Assume that six months ago you bought 2,500 shares of a stock at $70 per share using a margin. The…

A: Margin trading is a practice where an investor borrows funds to purchase securities, and the…

Q: You have been asked by the president of your company to evaluate the proposed acquisition of a new…

A: Free cash flows (FCF) the amount of cash flow available to investors after the firm has met all…

Q: FM Foods is evaluating its cost of capital. Use the following information provided on December 31,…

A: The objective of the question is to calculate the after-tax cost of equity capital for FM Foods.…

Q: In you cash account, you buy 100 shares of XYZ Corporation at a price of $10 per share. Two months…

A: Total Rate of return is the amount which is earned by the investor on his investment. It includes…

Q: 4. Consider JMJ Corp 6% $100 par value cumulative preferred stock. The current market price of the…

A: Dividend Rate = d = 6%Face Value = fv = $100Current Market Price of Stock = pv = $120

Q: I management is considering investing in two alternative Production systems. The systems are…

A: Internal rate of return: Discount rate of a project wherein its net present value equals zero.…

Q: Suppose the risk-free return is 5.3% and the market portfolio has an expected return of 10.2% and a…

A: We need to use CAPM model to calculate expected rate of return. Expected return =Risk free…

Q: The present value of JECK Co.'s expected free cash flow is $101 million. If JECK has $30 million in…

A: In this question, we are required to determine the share price.

Q: Ten annual returns are listed in the following table 19.9% 16.6% - 50.0% a. What is the arithmetic…

A: Arithmetic average return = Total Return / Number of yearsResult:-Arithmetic average return = 8.05%

Q: A European call and a European put on a stock have the same strike price and time to maturity. At…

A: Options pricing is a dynamic field influenced by various factors, including the underlying stock…

Q: Morgan Fillmore's lifelong dream is to own his own fishing boat to use in his retirement. Morgan has…

A: Present value of amount is computed as follows:-PV = FV*PVFwhereFV= future valuePVF = present…

Q: Sunland Oil Company is considering investing in a new oil well. It is expected that the oil well…

A: Net income:= Annual revenue increase - Operating costs increase= $133605 - $90000= $43605

Q: Compute the cost of not taking the following cash discounts. Note: Use a 360-day year. Do not round…

A: Companies give discount to the companies and that discount is the cost to the company and the cost…

Q: A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a…

A: Here, Expected Return E(R )Standard Deviation Stock Fund (S)21%28%Bond Fund (B)12%18%Risk Free…

Q: The Scandrick Corporation needs to raise $42 million to finance its expansion into new markets. The…

A: Required proceeds net of spread=(42,000,000+SEC filing fee and associated administrative…

Q: In the past, Farmer Felix bought a $1,000 face value, 5.0 percent coupon bond (interest paid…

A: Present value of annuity is computed as follows:-PV=A* wherePV= Present value of annuityA= periodic…

Q: Which of the following statements most accurately describes the relationship between the economic…

A: Bond tradingA credit spread is the difference in yield between two debt securities of the same…

Q: A project costs $1 million and has a base-case NPV of exactly zero (NPV = 0). Note: A negative…

A: NPV = 0Equity = $540,000Issue cost = 15.85% of net proceedNet proceed = Gross proceeds / (1 + issue…

Q: A project has a forecasted cash flow of $121 in year 1 and $132 in year 2. The interest rate is 8%,…

A: To calculate the required rate of return the CAPM formula is used and then discounts the cash flows…

Q: Which of the following will increase BOTH the operating leverage and the financial leverage? Assume…

A: Operating leverage and financial leverage are two key concepts that measure the extent to which a…

Q: Working as an investment analyst for a fund that invests in fixed-income assets, you are tasked with…

A: Solution:-Bond price means the price at which a bond is trading in the market. It is the summation…

Q: You are going to lease a brand new car. The price of the car is $50,000. You intend to make a $4,500…

A: When the borrower borrows a loan from the lender, he has to pay a rate of interest on the borrowed…

Q: Elmer had the following income and losses in 2022: Source Wages Interest Income Unemployment…

A: The objective of the question is to calculate the gross income that Elmer must report on his tax…

Q: Management of Drake Awesomeness, Inc., is currently evaluating three projects that are independent.…

A: NPV is also known as Net Present Value.. It is a capital budgeting technique which helps in decision…

Q: A Company is considering two mutually exclusive projects whose expected net cash flows are in the…

A: IRR is also known as Internal rate of Return. It is a capital budgeting technique which helps in…

Q: Elmer had the following income and losses in 2022: Source Wages Interest Income Unemployment…

A: We will add all the incomes.Note that child support payments, food stamp benefits, and life…

Q: A $1,000 corporate bond has a maturity date 20 years from now and a coupon rate of 6 percent paid…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Tobert Inc. is considering the purchase of a new piece of equipment. The cost of the equipment would…

A: IRR is also known as Internal rate of Return. It is a capital budgeting technique which helps in…

Q: A bank has $223 million in assets in the O percent risk-weight category. It has $363 million in…

A: Risk weighted asset= 0%* category 1 asset + 20%* category 2 asset+ 50% *category 3 asset+ 100%*…

Question

Quincy Martin Manufacturing has assets of $5 million and liabilities of $3
million. The company has also issued 400,000 shares of common stock.
What is the company's book value per share?
Select one:
O a. $10.25
O b. $7.50
O c. $5
O d. $2.50
O e. $1.00

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduction and Formula

VIEW

Step 2: Calculation and Final Answer

VIEW

Solution

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

Rebert Inc. showed the following balances for last year: Reberts net income for last year was 3,182,000. Refer to the information for Rebert Inc. above. Also, assume that the market price per share for Rebert is 51.50. Required: 1. Compute the dollar amount of preferred dividends. 2. Compute the number of common shares. 3. Compute earnings per share. (Note: Round to two decimals.) 4. Compute the price-earnings ratio. (Note: Round to the nearest whole number.)
If total assets are $20,000 and total liabilities are $12,000, the amount of stockholders’ equity is: A. $32,000. B. $(32,000). C. $(8000). D. $8,000.
Rebert Inc. showed the following balances for last year: Reberts net income for last year was 3,182,000. Refer to the information for Rebert Inc. above. Also, assume that the dividends paid to common stockholders for last year were 2,600,000 and that the market price per share of common stock is 51.50. Required: 1. Compute the dividends per share. 2. Compute the dividend yield. (Note: Round to two decimal places.) 3. Compute the dividend payout ratio. (Note: Round to two decimal places.)
Accounting XYZ Corporation had the following balance sheet information: Total assets: $500,000Total liabilities: $200,000Shareholders' equity: $300,000If XYZ Corporation has 50,000 shares outstanding, what is the book value per share?
The book value per share of Topaz General Ltd. is $10 per share and the company has a total of 4 million shares. Calculate the total book value of common equity of the company. a. $10 million b.$40 million OC. $400 million Cd. $4 million. e.$100 million
Liberty Corporation reported the following financial statements: The company has 2,500 shares of common stock outstanding and the market price is $20 per share. What is Liberty’s price/earnings ratio? a. 0.08 b. $0.08 c. 12.35 12.35 times
Ames, Inc., has a current stock price of $58. For the past year, the company had net income of 8,400,000, total equity of $25,300,000, sales of $52,800,000, and 4.6 million shares of stock outstanding. What is book value per share? Select one: a.4,50$ b.6.50$ c.5.50$ d.7.50$
XYZ Corporation had the following balance sheet information: Total assets: $500,000Total liabilities: $200,000Shareholders' equity: $300,000If XYZ Corporation has 50,000 shares outstanding, what is the book value per share?
Suppose a company declares a dividend of $0.50 per share. At the time of declaration, the company has 100,000 shares issued and 90,000 shares outstanding. On the declaration date, Dividends would be recorded for a. $0. b. $50,000. c. $45,000. d. $95,000.
50) Tucker Electronic System's current balance sheet shows total common equity of $3,125,000. The company has 125,000 shares of stock outstanding, and they sell at a price of $52.50 per share. By how much do the firm's market and book values per share differ? a. $28.88 b. $31.83 c. $33.43 d. $27.50 e. $30.32 52) Question 52 Bartling Energy Systems recently reported $9,250 of sales, $5,750 of operating costs other than depreciation, and $700 of depreciation. The company had no amortization charges, it had $3,200 of outstanding bonds that carry a 5% interest rate, and its federal-plus-state income tax rate was 25%. In order to sustain its operations and thus generate sales and cash flows in the future, the firm was required to make $1,250 of capital expenditures on new fixed assets and to invest $300 in net operating working capital. By how much did the firm's net income exceed its free cash flow? a. $693.50 b. $804.83 c. $766.50…
Dynasty Company has current assets of $50,000 and long-term assets of $45,000. Its totalliabilities equal $35,000. Stockholders’ equity is:a. $95,000.b. $60,000.c. $130,000.d. $80,000.
if the number of shares outstanding is 1,000,000. the profit for the year is $150,000, and the firm paid dividends of $50,000. the dividend per share is O a. 34% O b. 3 O c. 5% O d. 15%