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viktelen [127]
2 years ago
7

A corporation has $12 million net income after taxes, 5 million common shares outstanding, and $10 million of 6% preferred stock

($100 par). what is the corporation's earnings per share (eps)?
Business
1 answer:
Oduvanchick [21]2 years ago
7 0

$2.40., was incorrect. The correct answer was: $2.28.

Begin by calculating how much of the net income is available for common stockholders (net income after taxes minus preferred dividends equals earnings available for common stockholders). The preferred stockholders received $600,000 in dividends (100,000 pfd shares × $6 per share dividends = $600,000). After subtracting $600,000 from the net income of $12 million, this leaves $11.4 million (earnings available for common stockholders). Compute EPS (earnings available for common ÷ number of common shares outstanding = $11.4 million / 5 million shares = $2.28 per share EPS).

the qestion is incomplete .please read below to find the missing content

 A corporation has $12 million net income after taxes, 5 million common shares outstanding, and $10 million of 6% preferred stock ($100 par). What is the corporation's earnings per share (EPS)?

A) $2.52.

B) $1.20.

C) $2.28.

D) $2.40.

Earnings per share is the monetary value of earnings per outstanding share of a company's common stock. It is an important measure of a company's profitability and is often used in stock pricing.

EPS shows a company's profitability by showing how much profit the company makes for each share of its stock. The EPS figure is determined by dividing a company's net income by shares of common stock outstanding. However, the higher the EPS number, the more profitable the company.

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Pete jackson purchased office equipment costing $3,000 for his business and paid immediately. record this transaction in the acc
Hatshy [7]

Pete Jackson purchased office equipment costing $3,000 for his business and paid immediately. record this transaction in the accounting equation by: decrease cash, increase equipment.

When using the accounting equation, recording the acquisition of kit for cash would come with a rise to the account and a decrease to the (Cash/Equipment/Supplies) account. What's the right definition of an asset? Business activities change the amounts within the accounting equation.

The purchase of an equipment would only result in a rise in an asset (Equipment) and a decrease in another asset (Cash) within the same amount which might result in the identical total amount of assets, liabilities and equity, and can not affect the fundamental accounting equation.

The formula is straightforward: A company's total assets are adequate to its liabilities plus its shareholders' equity. The accounting equation is also expressed as assets - liabilities = owner's equity.

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3 0
1 year ago
Identify and analyze a department in your organization that experiences frequent equipment or process failures. If you are not c
lord [1]

Answer:

Find the explanation below.

Explanation:

The name of my organization is Prime Plc. known for the production of confectionaries. The Production Department in my organization has been experiencing frequent equipment failures quite recently. A close investigation showed that the delays were caused by a breakdown of the sugar mills, mixers and, coating machines. This has resulted in delays in the production process. To improve these failures, I believe that the organization should:

1. Employ Technicians who can quickly carry out repair work on these machines when they breakdown instead of outsourcing the repair work for this would take a longer amount of time to get the machines up and running.

2. Introduce the periodic maintenance of these machines. Machines are subject to wear and tear, so I would suggest that the maintenance of these machines is carried out within intervals of three months.

3. Train the production personnel on the proper usage of these machines. Production personnel should be updated on current and effective ways of handling machines so as to guarantee their safety and longer use.

4. Make provisions for backup machinery and equipment. The organization would do well to purchase backup equipment especially for machines that the organization cannot do without so that in the event of an equipment failure, the production process would not be stalled.

When these measures are considered, there would be a significant improvement in the production department.

8 0
2 years ago
Newtech corporation is offering a 10% stock dividend. The firm currently has 200,000 shares outstanding and after-tax profits of
White raven [17]

The stock price after the stock dividend =  $3636

<h3>What is Stock dividend?</h3>

A common stock dividend is a payment made from a company's profits to holders of common stock. The payout is made in the form of stock or cash, much like regular dividends. The amount of the common stock dividend may be regulated by law, especially if it is paid as a cash distribution that is effectively a liquidation.

<h3>What is shares outstanding?</h3>

All of the shares of a corporation that have been approved, issued, and purchased by investors and are now owned by them are referred to as outstanding shares. They differ from treasury shares, which are stock held by the corporation itself and have no rights that can be exercised.

<h3>According to the given information:</h3>

There are 200,000 shares in circulation.

Profits after taxes amount to $800,000.

$48 is the current stock price.

Stock dividend equals 10%

number of shares outstanding following a stock dividend

=200,000*(1+10%)

=220,000

earnings per share following stock dividends

=$800,000/220,000

=$3.636

As a result, $3.636 worth of earnings per share remain after the stock dividend.

To know more about Stock dividend visit:

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5 0
1 year ago
When a third party knows that an agent is acting on behalf of a principal, but does not know the identity of the principal, the
Amanda [17]
Partially disclosed or unidentified
5 0
3 years ago
15. Assume that Bullen issued 12,000 shares of common stock, with a $5 par value and a $47 fair value, to obtain all of Vicker's
vodomira [7]

Answer:

$104,000

Explanation:

Note: <em>The full question is attached as picture below</em>

Fair value of net assets = Cash and receivables + Inventory + Land + Buildings (net) + Equipment (net) - Liabilities

Fair value of net assets = $70,000 + 210,000 + 240,000 + 270,000 + 90,000 - 420,000

Fair value of net assets = $460,000

Purchase consideration paid = 12,000*$47

Purchase consideration paid = $564,000

Goodwill recognized = Purchase consideration - Fair value of net assets

Goodwill recognized = $564,000 - $460,000

Goodwill recognized = $104,000

7 0
2 years ago
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