Question

In: Accounting

hammer stockholders is considering a $7000 investment. Which of the following alternative cash inflows has the...

hammer stockholders is considering a $7000 investment. Which of the following alternative cash inflows has the shortest payback period?

a) $3000 in year one, $2500 per year for years three and four
b) zero dollars in year one, $8000 in year two
c) $1500 per year for years one through five
d) $8000 in year five

Kerwin holdings has total assets of $450,000 in shareholders equity of $120,000, of which $45,000 equity is common stock. How much is the company's debt to equity ratio?
a) 4.40
b) 2.75
c) 6.00
d) 3.75

bonsai incorporates net income in 2017 was $378,000. The company has 75,000 shares of common stock outstanding and 35,000 shares of preferred stock outstanding. No shares were issued or re-purchased during the year. The company pay difference of $1.50 per share on the common stock and $1.80 per share on the preferred stock. How much is earnings per share for 2017?

a) 5.04
b) 3.44
c) 4.20
d) 4.34

The employer is currently required to withhold a premium of 1.88% uninsured earnings to a maximum earnings ceiling of $49,500. Dallas reamer earns $1000 per week. What amount of EI/employment insurance will be deducted from Dallas his pay each week?
The employer is currently required to withhold a premium of 1.88% uninsured earnings to a maximum earnings ceiling of $49,500. Dallas reamer earns $1000 per week. What amount of EI/employment insurance will be deducted from Dallas his pay each week?

a) zero dollars
b) $18.80
c) $25.62
d) $839.97

Solutions

Expert Solution

Qns Option B Zero dollars in year one, $ 8000 in year two
Option Payback period
A 3.6
B 1.88
C 4.67
D 4.88
Qns Share holders Equity $120,000
Debt $330,000
debt to Equity Ratio 330000/120000
debt to Equity Ratio 2.75
Option B 2.75
Qns Net Income 378000
Less:Preferred Dividend
(35000*1.8) 63000
315000
No of share 75000
EPS 4.2
Option C 4.2
Qns Option A Zero dollars
As earnings are more than ceiling of $ 49500

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