Answer:
a. EPS = $4.78 per share
b. Basic EPS = $4.41 per share
Explanation:
a. Compute the earnings per share (EPS) of common stock
Number of shares outstanding = 38,000 + 10,000 + 1,000 = 49,000
EPS = Net income ÷ Number of common shares outstanding = $234,000 ÷ 49,000 = $4.78 per share
b. Compute the basic earnings per share of common stock
Preferred dividend = 6,000 × $50 × 6% = $18,000
Basic EPS = (Net income - Preferred dividend) ÷ Number of common shares outstanding = ($234,000 - $18,000) ÷ 49,000 = $4.41 per share
Answer:
9.62%.
Explanation:
Set the values of the bond on the financial calculator as follows :
PV = - $785
FV = $1,000
PMT = $1,000 x 4% = $40
P/YR = 1
N = 5
I/YR = ??
Here the question requires us to determine the value of the yield to maturity or I/YR.
Inputting the values as above in the financial calculator gives the I/YR as 9.62%.
Answer:
False
Explanation:
economist Kenji supports contractionary monetary policy because he believes that expectations adjust quickly in response to changes in policy and the efforts made by fed( an decrease in government spending and/or an increase in taxes) will be worth and the costs of reducing inflation will be less.
Whereas economist Eric, thinks that change in money supply is not a good idea to reduce inflation as it will work very slowly.
Answer: b. many economic activities expand and contract together in a recurring—but not periodic—fashion
Explanation:
The Business Cycle refers indeed to fluctuations in the business cycle related closely with the rise and fall in production output of goods and services in an economy.
It come with stages being Expansion, Peak, Recession, Depression, Trough, and Recovery. What is most interesting is that the movers behind the business cycle are not a singular entity but rather a series of Economic activities that are interconnected and move together. This is why some activities herald stages in the Business Cycle while some follow it. But they all have a role to play.
It is also very important to note that this is NOT a periodic occurence because it doesn't happen per period and neither can it be predicted but it happens. It is Recurrent but not periodic in other words.
Answer: $245
Explanation:
If the required return on the stock is 7 percent, the current share price would be calculated as:
= 6.60/1.07 + 17.60/1.07^2 + 22.60/1.07^3 + 4.40/1.07^4 + [(4.4 × 1.0525) / (7%-5.25%)] / 1.07^4
= $245.23
= $245 approximately
Therefore, the current share price will be $245
