The company has declared a 100% stock dividend on its common stock will not be considered while calculating the earnings per common shares should be.
Earnings per share = Net Income / Number of equity shares.
where Net Income = $1,520,000
Common equity shares = 300,000
Earnings per share = $1,520,000 / 300,000
Earnings per share = $5.07
Therefore, earnings per common share for year 2015 for Rice Corporation is $5.07
Answer:
cost of equity is 11.60 %
Explanation:
Given data
cost of capital = 10.9 percent
tax rate = 35 percent
earnings = $21,800
bonds outstanding = $25,000
rate = 6 %
to find out
cost of equity
solution
we will find first value of unlevered
value of unlevered = earning ( 1 - tax rate ) / cost of capital
value of unlevered = 21800 ( 1 - 0.35 ) / 0.109 = $130000
so
value of unlevered will be for firm = 130000 × bond outstanding × tax rate
value of unlevered will be for firm = 130000 × 25000 × 35%
value of unlevered will be for firm = $138750
so value of firm will be = bond outstanding + equity
so equity will be = 138750 - 25000
equity = $113750
so now
cost of equity will be = cost of capital + ( cost of capital - rate) (bonds / equity ) ( 1 - tax rate )
cost of equity will be = 10.9%+ ( 10.9 % - 6%) (25000 / 113750 ) ( 1-0.35)
so cost of equity = 11.60 %
Answer:
$184,260
Explanation:
Total cost of draw press is $172,000 and if it paid 15 days, there will be a discount of 2% and it is paid within the discount period
The discount is = $172,000 * 2/100 = $3,440
Total amount that would be capitalized is:
= ($172,000 - $3,440) + $4,600 + $11,100
= $168,560 + $4,600 + $11,100
= $184,260
So, the capitalized cost of the 10-ton draw press is $184,260
Note:
- The shipping costs and installation cost will be capitalized
- The cost of insurance in transit and cost incurred to remove a section of a wall will be capitalized as well as they are included in the cost above already
Answer:
d. This is clearly a case of perceptual filters. There are many people in the theater watching a movie. Suppose a James Bond movie, shows James Bond using a Sony mobile hand set.
Explanation:
Audience in the theater, who wants to buy a new handset, will pay attention and notice the fact that James Bond is using a Sony hand set. But audiences, who do not need to buy a hand set will probably not notice the brand or the model. So, those who do not want to buy a new mobile set are using their perceptual filters by not noticing the brand.
Answer:
a. percentage change in quantity demanded divided by percentage change in price equals price elasticity of demand
Explanation:
As we know that
The price elasticity of demand shows the relationship between the change or varied in quantity demanded with respect to change or varied in price
Here the change or varied in quantity demanded comes on the numerator side while the change or varied in price comes on the denominator side
So the first option is correct
