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Nuetrik [128]
3 years ago
12

P13–11 EPS calculations Southland Industries has $60,000 of 6% (annual interest) bonds outstanding, 1,500 shares of preferred st

ock paying an annual dividend of $5 per share, and 4,000 shares of common stock outstanding. Assuming that the firm has a 40% tax rate, compute earnings per share (EPS) for the following levels of EBIT: $24,600
Business
1 answer:
777dan777 [17]3 years ago
3 0

Answer:

$1.28

Explanation:

The computation of the earning per share is shown below:

As we know that

Earning per share = Net income ÷ Number of shares outstanding

where,

Net income is

Earning before interest and taxes      $24,600

Less: Interest

($60,000 × 6%)                                      - $3,600

Income before tax                                  $21,000

Less: tax for 40%                                    - $8,400

Earning after tax                                     $12,600

Less: Preference dividend

(1,500 shares × $5)                                  -$7,500

Income available                                       $5,100

So the earning per share is

= $5,100 ÷ $4,000

= $1.28

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Answer:

<u>b. False</u>

<u>Explanation:</u>

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3 years ago
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Answer:

The appropriate response is Option D (Job sharing).

Explanation:

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The amount of dividends and dividend price per share comes out to be $2,000,000 and $20 when the number of shares is assumed to be 100,000.

<h3>What are dividends?</h3>

Dividends are the amounts allocated to share investors by the company up to their shareholdings. It is the amount that is first provided to preferred stock investors.

Given values:

Expected profits: $4,00,000

Increase in Retained earnings: $2,000,000

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Computation of dividend per share;

\rm\ Dividend \rm\ per \rm\ share=\frac{\rm\ Expected Profits-\rm\ Increase \rm\ in \rm\ Retained \rm\ Earnings}{Number of shares} \\\rm\ Dividend \rm\ per \rm\ share=\frac{\$4,00,000-\$2,000,000}{100,000} \\\rm\ Dividend \rm\ per \rm\ share=\frac{\$2,000,000}{100,000} \\\rm\ Dividend \rm\ per \rm\ share=\$20

Therefore, the amount of the dividend is $2,000,000 at a share price of $20 to be paid this year.

Learn more about the dividends in the related link:

brainly.com/question/14171490

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2 years ago
If during the past decade the average rate of monetary growth has been 5% and the average inflation rate has been 5%, everything
skad [1K]
A is the answer


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3 years ago
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The last one, Delegation.

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