Accounting Information Systems
Accounting Information Systems
11th Edition
ISBN: 9781337552127
Author: Ulric J. Gelinas, Richard B. Dull, Patrick Wheeler, Mary Callahan Hill
Publisher: Cengage Learning
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Chapter 14, Problem 7P
Summary Introduction

To list: The positive and negative aspects of in-house versus outsourced payroll processing.

Introduction:

Human resource (HR) management and Payroll process:

Human resource management is about the basic human management functions in an organization and its associated activities. It also speaks about the relationship between human resource management activities and the payroll process. It also depicts the importance of HR activities in the decision making of the top management.

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No Excel. I need to see the work or I will not understand how the problem is solved. The Schnuz Corporation has a net income of $21 million and 5 million shares outstanding. Its common stock is currently selling for $49 per share. The company plans to sell common stock to set up a new cat food manufacturing plant with a net cost of $23,800,000. The plant will not produce a profit for one year, and then it is expected to earn a 14 percent return on the investment.  Chlo Incorporated, an investment banking firm, plans to sell the issue to the public for $45 per share with a spread of 3.5 percent.  a. How many shares of stock must be sold to net $23,800,000? (Note: No out-of-pocket costs should be considered in this problem.)  b. What are the earnings per share and the price-earnings ratio before the issue (based on a stock price of $49)? What will be the price per share immediately after the sale of stock if the P/E stays constant?  c. Compute the EPS and the price (if the P/E stays…
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