Answer:
$56,667
Explanation:
Diluted EPS is a measure used to assess the quality of a company's earnings per share (EPS). Diluted EPS takes into calculation all convertible securities such as convertible bonds or convertible preferred stock, which are changed into equity or common stock.
The stock options have a value of (10,000 × $10)/$12 = $8,333 on conversion.
To calculate the Diluted Earnings per share,
40,000 + (20,000 × 9/12) + (10,000 - 8,333) = $56,667.
Is this a true or false question? Is it multiple choice? is it expected to be written in complete sentences as a short answer? I need more context on how to respond to the situation in the question :)
Answer:
5%
Explanation:
Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested
IRR can be calculated with a financial calculator
The interest rate implicit in the agreement can be determined by finding the internal rate of return.
Cash flow in year 0 = $-196,401
Cash flow each year from year 1 to 7 = $33,942
IRR = 5%
To find the IRR using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the IRR button and then press the compute button.
