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RideAnS [48]
2 years ago
7

Ecker Company reports $2,700,000 of net income and declares $388,020 of cash dividends on its preferred stock for the year. At y

ear-end, the company had 678,000 weighted-average shares of common stock.
1. What amount of net income is available to common stockholders?

2. What is the company’s basic EPS?
Business
2 answers:
choli [55]2 years ago
4 0

Answer:

1.

The net income available to common stockholders is $2,311,980

2.

The basic EPS is $3.41 per share.

Explanation:

1.

The net income available to common stockholders is the amount of net income that is left after deducting the preferred dividends from the net income for the year. Thus, net income available to common stockholders is,

Net Income available to common stockholders = Net Income - Preferred stock dividends

Net Income available to common stockholders = 2700000 - 388020

Net Income available to common stockholders = $2,311,980

2.

The basic EPS or basic earnings per share is the amount of earning or net income that a company has earned on each of its common stock/share. The basic EPS is calculated as follows,

Basic EPS = Net Income available to common stockholders / Weighted average number of common shares outstanding

Basic EPS = 2311980 / 678000

Basic EPS = $3.41 per share

erica [24]2 years ago
3 0

Answer:

Consider the following explanation

Explanation:

(1) - Net income is available to common stockholders for 2013

Net income is available to common stockholders = Reported Net Income – Preferred Dividend

= $2,700,000 - 388,020

= $ 2,311,980

(2) - Company’s Basic EPS for 2013

Basic Earnings Per Share [EPS] = Net income is available to common stockholders / weighted-average shares of common stock

= $ 2,311,980 / 678,000 Shares

= $3.41 per share

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A company builds a new plant and finances its construction by issuing stock. Which ratio is least likely to be affected, all els
Marta_Voda [28]

Answer:

a. Current ratio

Explanation:

Current Ratio is the least likely to be affected

The  Current Ratio is given as

Current Ratio = [ Current assets ] ÷ [ Current liabilities  ]

Now,

Building a new plant is a fixed asset for the company.

Thus, It will add to the Fixed assets

Since,

The Formula for current ratio is independent of the fixed assets

Therefore,

It will be least affected.

While,

Debt to equity ratio = [ Debt ] ÷ [ Equity ]

Debt to asset ratio= [ Total Debt ] ÷ [ Total Assets ]

Net fixed assets to total assets = [ Net fixed assets ] ÷ [ Total assets ]

in all the above relations, fixed asset will change the value of the total assets.

Hence,

They all will be affected

7 0
3 years ago
Use the​ high-low method to determine the​ hospital's cost equation using nursing hours as the cost driver. Predict total overhe
netineya [11]

Answer: Total cost  (23500 hours predicted ) = $ 484625

Explanation:

The question is incomplete the high and low methods requires us to use high and low level of activity together with the corresponding total costs at each level to determine the variable cost per unit. we will provide assumed total costs and nursing hours in order to show how high and low method is used to predict total costs for the next period.

Assume the following were total costs and corresponding nursing hours for the previous 3 months

Total cost                Hours

$560000             30000 hours

$400000             220000 hours

$225000             10000 hours

calculating Variable cost using high and low method

Variable cost per unit  = (high cost - low cost)/high hour - low hours)

Variable Cost Per unit =  (840000 - 225000)/ (30000 - 10000) = 16.75

Variable cost per unit = $ 16.75

Fixed costs = 560000 - (28000 x 16.75) =  560000 - 469000

Fixed costs =  $91000

Total cost  (23500 hours predicted ) =Total Fixed cost + Total Variable costs

Total cost  (23500 hours predicted ) = $91000 + (23500 x $16.75)

Total cost  (23500 hours predicted ) == $91000 + $393625

Total cost  (23500 hours predicted ) = $ 484625

6 0
3 years ago
In the DuPont Model, return on equity (ROE) is dependent on the firm's:
Anna35 [415]

Answer:

A. Net margins, debt leverage, and asset turnover.

Explanation:

ROE = (Net income / sales) x (sales / total assets) x (total assets / shareholders equity)

I hope my answer helps you

8 0
3 years ago
Managers organize information about a given job by performing a job analysis to determine the following with regard to that job:
Law Incorporation [45]

Answer:

All of the above.

Explanation:

Job analysis is when manager uses information available as a criteria for determining attributes required to perform a job.

In job analysis, information is made available to managers to know which employee is best suited for a particular role. It is also used to measure the capacity of employees whether they are being under or over utilized.

For effective job redistribution, job analysis is best recommended because it describes the work of current employee, working conditions and necessary educational certifications. Skills needed to perform on a role are also part of what is being considered in job analysis.

5 0
3 years ago
. Distinguish between the short run and the long run as they relate to macroeconomics. Why is the distinction important
STALIN [3.7K]

Answer:

1. In the short run, wages and other prices are stagnant making the economy to run below or above the normal level. In the long run, wages and prices are fully flexible, and this allows the economy to run at its natural level.

2. This distinction is important because it helps us to see how difficult it could be to sustain the real gross domestic product and employment rates thus making the economy to run at a normal level or achieve its full potentials.  

Explanation:

Stickiness or stagnancy of wages can be seen in the fact that it is most time difficult to fluctuate or change the wages of workers overtime. The prices of most goods are also sticky when they remain unchanged over a given period of time. These conditions exist in the short run, and make the economy to run above or below its full potentials. The real GDP and unemployment levels are negatively affected.

In the long run, flexibility of wages and prices are achieved and this makes the economy to run at its full potentials. The real GDP as well as the employment rate are at their optimum level then.

5 0
3 years ago
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