Answer:
the answer is A, hope i helped (:
a. increase overall quality
Explanation:
Answer:
- It is not immediately obvious whether the effect of the conversion of a particular convertible security would be dilutive or antidilutive.
- If the effect of the conversion or exercise of potential common shares would be to increase EPS, the related securities are referred to as antidilutive securities.
- To determine whether convertible securities are dilutive, we can compare the “incremental effect” of the conversion (expressed as a fraction) with the EPS fraction before the effect of any convertible security is considered.
Explanation:
The antidilutive securities may be defined as the financial instruments for which an organization possess at a particular point of time that are not in the form of a common stock. When these antidilutive securities are converted into a common stock, it results in an increase in earnings for one share of the organization. Thus the EPS or the earnings per share increases when the the antidilutive securities are converted into the common stocks.
The following effects of the antidilutive securities on the EPS are true :
- the effects of conversions of any convertible security are not immediately obvious that it would be dilutive or antidilutive.
- when the effect of the conversion or the exercise of any potential common shares is to increase the EPS, then the securities are called as antidilutive securities.
- To know if the convertible securities are dilutive or antidilutive, we have to compare its incremental effect with the EPS before any effect of the conversion.
Answer:
Nov 1 Cash $2,300,000 Dr
Notes Payable $2300,000 Cr
Dec 31 Interest Expense $34,500 Dr
Interest Payable $34,500 Cr
Explanation:
The interest is payable at maturity that is at the start of May as the nite is for six months. However, at the end of the period the adjusting entry will be made. On 31 December the 2 months interest is accrued. The expense relates to this period so will be recorded as an expense and as a payable.
The 9% is the annual rate.
the annual Interets is 2300000*0.09 = 207000
So, the 2 month interest will be = 207000 * 2/12 = 34500
Answer:
11.57% and 9.02%
Explanation:
For computing the before-tax and after- tax cost of debt we use the RATE formula i.e to be shown in the attachment below:
Given that,
Present value = $1,050 - $20 = $1,030
Future value or Face value = $1,000
PMT = 1,000 × 12% = $120
NPER = 15 years
The formula is shown below:
= Rate(NPER;PMT;-PV;FV;type)
The present value come in negative
So, after solving this,
1. The pretax cost of debt is 11.57%
2. And, the after tax cost of debt would be
= Pretax cost of debt × ( 1 - tax rate)
= 11.57% × ( 1 - 0.22)
= 9.02%
Answer:
$1,440 ; $90 and $270
Explanation:
The computation of the allocation cost for each is shown below:
TV
= (Sale value of TV ÷ Total sales value) × (Entire package sales value)
= ($1,520 ÷ $1,900) × $1,800
= $1,440
Remote
= (Sale value of remote ÷ Total sales value) × (Entire package sales value)
= ($95 ÷ $1,900) × $1,800
= $90
Installation service
= (Sale value of Installation service ÷ Total sales value) × (Entire package sales value)
= ($285 ÷ $1,900) × $1,800
= $270
The total sales value
= $1,520 + $95 + $285
= $1,800