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ella [17]
4 years ago
5

At December 31, 2017, Sager Co. had 1,200,000 shares of common stock outstanding. In addition, Sager had 450,000 shares of prefe

rred stock which were convertible into 750,000 shares of common stock. During 2018, Sager paid $1,200,000 cash dividends on the common stock and $800,000 cash dividends on the preferred stock. Net income for 2018 was $6,800,000 and the income tax rate was 40%. The diluted earnings per share for 2018 is (rounded to the nearest penny
Business
1 answer:
AnnZ [28]4 years ago
8 0

Answer: $3.49

Explanation:

Diluted earnings per share = \frac{Net Income}{Outstanding Common Stock + Convertible shares}

Diluted Earnings per share = \frac{6,800,000}{1,200,000 + 750,000}

Diluted Earnings per share = 3.4871

Diluted Earnings per share = $3.49

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Explanation:

The journal entry is as follows:

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For recording this given entry, we debited the sales account and credited the customer refund payable account so that the proper positing could be done. Both the accounts are recorded at $900

7 0
3 years ago
Significant change in the age structure of a population is one example of the impact of the​ firm's ________.
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8 0
3 years ago
The two categories of cost comprising conversion costs are
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Answer:

Explanation:

Direct labor and factory overhead

3 0
2 years ago
Marginal productivity theory assumes that a worker’s income is a function of the contribution of that worker to the value of the
Dmitriy789 [7]

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7 0
2 years ago
Which has a higher flow rate? 10 customers arriving over two hours or 10 customers arriving over three hours?
Tcecarenko [31]

The one that gives a higher flow rate is: 10 customers over 2 hours. The flow rate is 5 customers per hour.

Flow rate is defined as the number of flow units that pass through the business process per unit time.

The flow unit can be money, customers, products, parts, services, etc.

Example of flow rate is number of customers serviced per hour, number of parts produced per minute, etc.

From the definition, the flow rate can be expressed as:

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