Newsome Inc

question 73

Multiple Choice

Newsome Inc.buys on terms of 3/15, net 45.It does not take the discount, and it generally pays after 60 days.What is the nominal annual percentage cost of its non-free trade credit, based on a 365-day year?

• A) 25.09%
• B) 27.59%
• C) 30.35%
• D) 33.39%
• E) 36.73%

Analyze and compute basic and diluted earnings per share (EPS) including understanding its components.

Understand and calculate dividend yield and price-earnings ratio and their significance to investors.

Identify the reasons for and the accounting treatment of prior period adjustments.

Compute and interpret the book value per share of a company’s common stock.

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Definitions:

Human Capital

The collective skills, knowledge, abilities, and other attributes embedded in individuals that contribute to their economic productivity.

Education

The process of facilitating learning, or the acquisition of knowledge, skills, values, beliefs, and habits through various methods such as teaching, training, storytelling, discussion, and directed research.

On-The-Job Training

The education and training provided to employees while they perform tasks or processes related to their job at the workplace.

Human Capital

The collective skills, knowledge, or other intangible assets of individuals that can be used to create economic value for the individuals, their employers, or the community.