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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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Elenna [48]

Answer:

True.

Explanation:

Managerial accounting involves managers using accounting information to better inform themselves before making business decisions. It involves analysing, interpreting and communicating financial data to managers to aid in achievement of organisation's goals.

Managerial accounting is for internal use in the business. Data is modified to meet specific need of the end-user. For example a manager may want to see sales figures for a quarter compared to business target. This will give an idea if the business is meeting it's objectives.

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Yuliya22 [10]

Explanation:

Negative Impact of globalisation:

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2 years ago
A manufacturing company incurs direct materials costs of $6 per unit. The total direct materials cost is______when the company m
Alja [10]

Answer:

$12,000

Explanation:

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Therefore total direct material cost can be calculated as follows

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3 years ago
Everything else held constant, an increase in uncertainty on business will_____ the required rate of return on its stock and ___
wlad13 [49]

Answer:

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Explanation:

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babunello [35]

Answer:

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Explanation:

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The challenges faced by Best Buy is mostly as a result of external forces in the form of competition with Walmart and Amazon. Resulting in the loss of their share value.

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