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Bad White [126]
3 years ago
13

On January 1, 2021, Perez Co. issued at par $10,000 of 6% bonds convertible in total into 1,000 shares of Perez's common stock.

No bonds were converted during 2021. Throughout 2021, Perez had 1,000 shares of common stock outstanding. Perez's 2021 net income was $4,500, and its income tax rate is 30%. No potentially dilutive securities other than the convertible bonds were outstanding during 2021. Perez's diluted earnings per share for 2021 would be:_________.a. $5.00.
b. $4.54.
c. $4.50.
d. $4.72.
Business
1 answer:
marusya05 [52]3 years ago
7 0

Answer:

EPS = $4.50

diluted EPS = $2.46

Explanation:

no option is correct since EPS = $4.50, and the rest of the options are all higher amounts. Diluted EPS are always smaller than EPS.  

common stock outstanding = 1,000 stocks

bonds shares (diluted) = 1,000 stocks

net income = $4,500

bond interest = $10,000 x 6% x (1 - 30%) = $420

diluted earnings per share = ($4,500 + $420) / (1,000 shares + 1,000 shares) = $4,920 / 2,000 shares = $2.46

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Suppose that TapDance, Inc.’s, capital structure features 65 percent equity, 35 percent debt, and that its before-tax cost of de
stealth61 [152]

Answer:

WACC 8.53600%

Explanation:

WACC = K_e(\frac{E}{E+D}) + K_d(1-t)(\frac{D}{E+D})

The Weighted average cost of capita lconsiders the weight of the equity times the cost of it.

And the wight of the dbet times the cost of financing after the tax shield.

Ke 0.11000

Equity weight 0.65

Kd 0.06

Debt Weight 0.35

t 0.34

WACC = 0.11(0.65) + 0.06(1-0.34)(0.35)

WACC 8.53600%

7 0
3 years ago
Monica paid $12 for a music CD for which she later was offered $15. After that someone offered her $18 for the CD. If Monica kee
Wewaii [24]

Answer:

False

Explanation:

The opportunity cost refers to the benefit that is foregone by choosing some other alternative. It is measurable in monetary terms as well as in non-monetary terms.

In our case,

Monica paid for CD = $12

Hence, she already paid for the CD, so here the opportunity cost is either she keep the CD or she not keep the CD for the amount of $18.

Hence, if Monica decided to keep the CD then the opportunity cost of keeping the CD is $18.

7 0
3 years ago
Suppose you know that a company’s stock currently sells for $66.70 per share and the required return on the stock is 12 percent.
Kobotan [32]

Answer:

$3.78

Explanation:

The computation of current dividend per share is shown below:-

Dividend yield = Capital gains yield

= (12% ÷ 2)

= 6%

Dividend yield = Annual Dividend for next year ÷ Current price

Annual Dividend for next year = ($66.7 × 6%)

= $4.002

So,

The Current dividend per share = Annual Dividend for next year × (1 + interest rate)

= $4.002 ÷ (1 + 0.06)

= $4.002 ÷ 1.06

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8 0
3 years ago
What will be the ratio of products a and b? assume the relative reactivity of c-h bonds to be 3°:2°:1° = 5.5:4.5:1?
bija089 [108]

Answer:

The answer is 1/3.

Explanation:

No of 1 degree product = B = 12 x 1

No of 2 degree product = B = 8 x 4.5

Ratio of A / B =  12 ÷ ( 8 x 4.5)

Ratio of A / B = 1÷3.

3 0
3 years ago
Benjamin is an employee at Apex Inc. Recently, he was moved to a new work team to help in the development of a new product. Sam,
kompoz [17]

Answer:

A. Apex Inc. has brought together employees from different functions to form a team, leading to conflicting expectations.

6 0
3 years ago
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