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jeka57 [31]
3 years ago
12

During the current year, Comma Co. had outstanding: 25,000 shares of common stock, 8,000 shares of $20 par, 10% cumulative prefe

rred stock, and 3,000 bonds that are $1,000 par and 9% convertible. The bonds were originally issued at par, and each bond was convertible into 30 shares of common stock. During the year, net income was $200,000, no dividends were declared, and the tax rate was 30%. What amount was Comma's basic earnings per share for the current year
Business
1 answer:
irina [24]3 years ago
8 0

Answer:

The basic earnings per share for the present year is $7.36 per share

Explanation:

The basic earnings per share for the current year of Comma is computed as:

= (Net Income - preferred stock) / Outstanding shares

where

Net Income is $200,000

Preferred stock is computed as:

= Shares × 10% × Price × 10%

= 8,000 × 10% × $20

= 800 × $20

= $16,000

Outstanding shares - 25,000

Putting the values above:

= ($200,000 - $16,000) / 25,000

= $ 184,000 / 25,000 shares

= $7.36 per common share

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Jones Company incurred the following costs while producing 100 chairs: Units produced 100 chairs Direct materials $10 per unit D
Vikentia [17]

Answer:

The answer is: The ending balance in Finished Goods Inventory is $1,200

Explanation:

First we have to calculate the cost per chair produced, to do this we will find the total cost and divide by the number of chairs produced:

Units produced  100 chairs

  • Direct materials  $10 per unit  x 100 = $1,000
  • Direct labor  15  per unit  x 100 = $1,500
  • Variable manufacturing overhead 3 per unit x 100 = $300
  • Total fixed manufacturing overhead  $2,000

Total costs are $4,800 / 100 chairs = $48 per chair produced

There are 25 chairs left in finished goods inventory (FGI) = 100 - 75 = 25

The ending balance in FGI is = 25 chairs x $48 per chair = $1,200

3 0
3 years ago
What term refers to the business model of selling goods online through an Internet store site?
balu736 [363]
It would be B.) E-commerce this term is used to describe buying and selling products online.
4 0
3 years ago
Suppose that the USA can make 15,000,000 cars or 20,000,000 bottles of wine with one year's worth of labor. France can make 10,0
Artemon [7]

Answer: The answer is as follows:

Explanation:

From these numbers, we can conclude that USA has a comparative in producing cars and France has a comparative advantage in producing bottles.

Opportunity cost shows that how many units of one good have to be foregone in order to produce one additional unit of other good.

In USA:

Opportunity cost of producing bottles = \frac{15000000}{20000000}

= 0.75

Opportunity cost of producing cars = \frac{20000000}{15000000}

= 1.33

In France:

Opportunity cost of producing bottles = \frac{10000000}{18000000}

= 0.55

Opportunity cost of producing cars = \frac{18000000}{10000000}

= 1.8

Above calculations clearly shows that USA has a lower opportunity in producing 1 unit of car as compared to the France, so it has a comparative advantage in producing cars.

Whereas, France has a lower opportunity in producing 1 unit of bottle as compared to the USA, so it has a comparative advantage in producing Bottles.

5 0
3 years ago
Briefly describe one financial goal that you would like to achieve and the steps that you plan to take to achieve that goal.
Nadya [2.5K]

Answer:

I would like to become a multi-millionaire of course

Explanation:

I'll invest all my money in a stock I have researched then hope my life hasn't been destroyed by it. Reasearch by watching the way the stock market treats it on special occasions like christmas,and then again on days like weekends.

7 0
2 years ago
The Jameson Company just paid a dividend of $0.75 per share, and that dividend is expected to grow at a constant rate of 5.50% p
jok3333 [9.3K]

Answer:

Current price of the stock of Jameson company is $18.62. Therefore, the correct option is A

Explanation:

The formula of required rate of return is:

Required rate of return = Risk free rate + Beta × Market risk premium

= 4% + 1.15 × 5%

= 4%  5.75%

= 9.75%

Computation of current stock price is:

Current stock price = Expected dividend per share / (Required rate of return - Growth in dividend)

= (0.75 + [5.50% × 0.75] ) / (0.0975 - 0.055)

= 0.79125 / 0.0425

= $18.62

5 0
3 years ago
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