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marusya05 [52]
2 years ago
5

If a company reports operating profit of $70 million, earns net income of $50 million in year 8, has 20 million shares of common

stock outstanding, pays a dividend of $1. 50 per share, and has annual interest costs of $15 million--all in year 8, then
Mathematics
1 answer:
romanna [79]2 years ago
7 0

The company's EPS for Year 8 would be $2.50 and its retained earnings for Year 8 would be $20 million

<h3>How do we calculate EPS and retained earnings?</h3>

Note: The options for the questions are as follows:

A. the company's total earnings for Year 8 would be $10 million (net income of $50 million less interest costs of $10 million less dividend payments of $30 million = $10 million).

B. the company's EPS for Year 8 would be $2.50 and its retained earnings for Year 8 would be $20 million (net income of $50 million less dividend payments of $30 million).

C. the company's credit rating would be no less than an A because operating profit is seven times higher than annual interest costs.

D. the company's EPS for Year 8 would be $5.50 and its retained earnings for Year 8 would be $10million (net income of $50 million less interest costs of $10 million less dividend payments of $30million).

E. the company's EPS for Year 8 would be $1.50 (operating profit of $70 million less interest costs of$10 million, less dividend payments of $30 million= $30 million divided by 20 million shares).

The question can now be answered as follows:

From the question, we can calculate the following:

EPS = Net income / Number of shares of common stock outstanding = $50 million / 20 million = $2.50

Dividend payments = Number of shares of common stock outstanding * Dividend per share = 20 million * $1. 50 = $30 million

Retained earnings = Net income - Dividend payments = $50 million - $30 million = $20million

Therefore, the correct option is B. the company's EPS for Year 8 would be $2.50 and its retained earnings for Year 8 would be $20 million (net income of $50 million less dividend payments of $30 million).

Learn more about EPS here: brainly.com/question/19671991.

#SPJ1

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yes

Step-by-step explanation:

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7 0
3 years ago
Y= -0.25x + 4.7<br> Y=4.9x - 1.64
Andreas93 [3]

Answer:

The answer would be (1.23, 4.39)

Step-by-step explanation:

Because they are both equal to y, we can set the equations equal to each other and then solve.

4.9x - 1.64 = -0.25x + 4.7

5.15x - 1.64 = 4.7

5.15x = 6.34

x = 1.23

Now that we have the value for x, we can plug into either equation and find y.

y = -0.25x + 4.7

y = -0.25(1.23) + 4.7

y = -.31 + 4.7

y = 4.39

3 0
3 years ago
Suppose a river flows south to north at a velocity of 1 m/s, and a motorboat traverses the river from east to west at a speed of
irina1246 [14]

Answer: 24^{\circ}

Step-by-step explanation:

Given

River is flowing from south to North with a velocity of u=1\ m/s

Motor boat traverses the river from east to west at a speed of v=2.5\ m/s

South component of boat velocity must compensate the river velocity in order to travel in west direction.

\therefore v\sin \theta=u\\\\\Rightarrow 2.5\sin \theta=1\\\\\Rightarrow \sin \theta=\dfrac{2}{5}\\\\\Rightarrow \theta=23.57^{\circ}\approx 24^{\circ} \text{south of west}

5 0
3 years ago
What is the solution of square root x-4+5=2 ?<br> x = –17<br> x = 13<br> x = 53<br> no solution
professor190 [17]
What is inside the square root? Is it just the root of x? Or is it ROOT(x-4) + 5 = 2? 
6 0
4 years ago
Can i please get help on this question
Fiesta28 [93]

Answer:

The triangle is an acute equilateral triangle

Step-by-step explanation:

The triangle is acute because of all three angles measuring under 90 degrees.

It is also equilateral for all of its angles are of equal measurements and all three sides are congruent as well.

5 0
3 years ago
Read 2 more answers
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