Answer: The advantage of the basic earning power ratio (BEP) over the return on total assets for judging a company's operating efficiency is that the BEP does not reflect the effects of debt and taxes
Explanation:
a. This is correct.
The advantage of basic earning power ratio over the return on the total assets for judging a firm's operating efficiency is that the basic earning power does not reflect effects of debt and taxes.
b. This is incorrect.
Only the price/earnings ratio of the company will tell us nothing about a company. When we compare the price/earnings of a company with the peers, we would know whether such company is under valued, or over valued or maybe fairly valued.
c. This is incorrect.
The total assets is made up of total liabilities plus the shareholders equity, when other things are held constant, less debt simply means less liabilities. To balance both sides, the total assets should reduce as the shareholder's equity is constant. When total assets decreases, the return on the assets will increase.
d. This is incorrect.
We can reach a conclusion on which firm is better managed based on the facts given. The debt ratio is the total liabilities divided by total assets, and a lower ratio is known to be good in comparison to a higher ratio. Similarly, the profit margin is the profit divided by the sales, and low profit margin shows high expenses and also a need for the management to decrease the expense.
Answer:
$3.02 per share
Explanation:
The computation of the earning per share is shown below:
we know that
Earnings per share = (Net income - preferred dividend) ÷ Weighted average outstanding common shares
= ($2,150,000 - $70,000) ÷ 688,000 shares
= $3.02 per share
<u>Date Particulars No. of shares
</u>
01/01-31/12 610000 × 12 ÷ 12 (610000 × 1.04) $634,400
28/02-31/12 63000 × 10 ÷ 12 (52500 × 1.04) $54,600
01/07-31/12 (2000) × 6 ÷ 12 -$1,000
Weighted average outstanding common shares 688,000
The answer should be A, as grants and scholarships are easier to attain
Answer: 1.95%
Explanation:
Your after-tax return can be calculated by the formula;
= return * ( 1 - tax rate)
= 2.6% * ( 1 - 25%)
= 1.95%
Answer:
Not entitled
Explanation:
Given that
Number of shares purchased = 380 shares
Par value of share = $28.80 per share
Worth per share = $3.60 per share
By considering the above information, the Barney is not eligible for the deduction as there is no share is sold i.e only purchase value of the share and the worth per share is given.
So, he is not entitled to any loss this year
