1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
gizmo_the_mogwai [7]
3 years ago
7

The basic earnings per share and the diluted earnings per share would have quite different values for a firm that relied heavily

on preferred stock and convertible debt securities to acquire funds.True/False
Business
1 answer:
S_A_V [24]3 years ago
7 0

Answer: TRUE

Explanation:BASIC EARNINGS PER SHARE is a term used in the financial Securities market to mean the NET INCOME available to common shareholders.

DILLUTED EARNINGS PER SHARE is a term used in the financial Securities market to describe the outstanding profits available to common shareholders, after all the preferred stocks, warrants,convertible securities have been converted to common stocks.

Preferred stocks are also called hybrid stock, because it has certain features of common stock and convertible securities,it has a higher priority than common stock to payment of dividend etc.

Convertible debt securities are debt securities which can be converted to common stocks.

It basic earnings and diluted earning per share will definitely not be the same for such a firm.

You might be interested in
The nominal gdp of the u.s. in 2015 was approximately​ $17.3 trillion. this means that
Nataly [62]
<span>This means that:

-the value of output in 2015 was around $17.3 trillion
-total income in 2015 was around $17.3 trillion
-total spending in 2015 was around $17.3 trillion

Value of output and total spending has basically similar meaning because they account for the total amount required to produce all output/product within the period.
Assuming that it's all gonna be sold, the total income will be at least close to the amount needed for production because the nominal GDP is evaluated at current market prices.</span>
8 0
3 years ago
An IAC (industrially advanced country) had a per capita income of $44,000, while a DVC (developing country) had a per capita inc
faust18 [17]

The per-capita-income gap one year later will be $43,472.

<h3>What will be the per-capita-income gap one year later?</h3>

GDP per capita is the GDP of a country divided by the population of the country. It is used as a metric to determine the standard of living of the population.

GDP per capita = GDP / population

Difference in the GDP per capita = 1.04 x (44,000 - 2,200)

1.04 x 41,800 = $43,472

To learn more about GDP per capita, please check: brainly.com/question/28018695

#SPJ1

5 0
1 year ago
Some federal grants, such as categorical grants, ____________, while others, such as block grants, ____________.
Vinil7 [7]
Fund only individual citizens; fund only projects for states and localities
5 0
3 years ago
Which one of the following is NOT a real option? The option to buy shares of stock if its price is expected to increase. The opt
puteri [66]

Answer:

The answer is: The option to buy shares of stock if its price is expected to increase.

Explanation:

A <em>"real option"</em> in management is: a choice managers can take concerning business investment opportunities. <em>Real options</em> usually involve tangible assets (machinery, buildings, inventory, land, etc.) but not financial instruments or stocks.

So the buying or selling of stocks aren´t considered <em>real options</em> in business management.

4 0
3 years ago
Gugenheim, Inc., has a bond outstanding with a coupon rate of 7.7 percent and annual payments. The yield to maturity is 8.9 perc
Anna [14]

Answer:

Bond price= $1,793.62

Explanation:

Giving the following information:

Face value= $2,000

Number of periods= 17

Cupon rate= 0.077

YTM= 0.089

T<u>o calculate the price of the bond, we need to use the following formula:</u>

Bond Price​= cupon*{[1 - (1+i)^-n] / i} + [face value/(1+i)^n]

Bond Price​= 154*{[1 - (1.089^-17)] / 0.089} + [2,000/1.089^17)

Bond Price​= 1,324.21 + 469.41

Bond price= $1,793.62

3 0
3 years ago
Other questions:
  • An employer is required to offer a medical worker the hbv vaccination within ____ days of starting employment.
    11·1 answer
  • When conducting a financial analysis of a firm, financial analysts:?
    6·1 answer
  • Lester's rented some equipment at a cost of $800 for Years 1 through 3 and $900 for Years 4 and 5. Which of these correctly depi
    7·1 answer
  • Steve issues a 30-day negotiable promissory note, payable to the order of Henry, to cover the cost of Henry buying a car for Ste
    6·1 answer
  • Bed &amp; Bath, a retailing company, has two departments, Hardware and Linens. The company’s most recent monthly contribution fo
    13·1 answer
  • A firm should hire more labor when the marginal revenue product of labor:1)A)exceeds the wage rate.B)equals the wage rate.C)is l
    7·1 answer
  • Yuma, Inc. manufactures teddy bears and dolls. Currently, Yuma makes 2,100 teddy bears each month. Each teddy bear uses $3.50 in
    13·1 answer
  • correct,P5-23 (similar to) Value of a retirement annuity Personal Finance Problem An insurance agent is trying to sell you an​ a
    11·1 answer
  • Como conseguir novio en tres días?
    10·2 answers
  • The relationship between wealth accumulation and risk tolerance is referred to as what?
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!