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ziro4ka [17]
3 years ago
9

Rockland Corporation earned net income of $300,000 in 2014 and had 100,000 shares of common stock outstanding throughout the yea

r. Also outstanding all year was $800,000 of 10% bonds, which are convertible into 16,000 shares of common. Rockland’s tax rate is 40 percent.
Compute Rockland's 2014 diluted earnings per share.
Business
1 answer:
Zolol [24]3 years ago
3 0

Answer:

$3 per share

Explanation:

Given that,

Net income earned in 2014 = $300,000

Common stock outstanding throughout the year = 100,000 shares

Tax rate = 40%

(After-tax interest on convertible debt + Convertible preferred dividends), B:

= [(Outstanding all year × 10% bonds) × (1 - Tax rate)]

= [($800,000 × 10%) × (1 - 0.4)]

= $80,000 × 0.6

= $48,000

Therefore, the Rockland's 2014 diluted earnings per share is as follows:

= (Net income earned in 2014 + B) ÷ (Common stock outstanding throughout the year + Convertible shares)

= ($300,000 + $48,000) ÷ (100,000 + 16,000)

= $348,000 ÷ 116,000

= $3 per share

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Which economic system best defines: Lowest amount of economic freedom?
Dafna11 [192]

Answer:

command economy

Explanation:

In a command economy, the government is the only determinant of what is to be produced, its quantity, and price.  All the factors of production belong to the government. The government or the central authority creates a central plan that guides all country's economic activities and decisions.

The private sector is absent in a command economy. The government is the only employer. Citizens do not have the freedom to choose what to buy, but rather what is available.

6 0
3 years ago
The Federal Reserve (or Fed) often executes its policy by selling or buying U.S. government securities in the open market, which
dem82 [27]

Answer:

a) When interest rates on U.S. government securities increases, then the Federal Reserve sells those securities in the open market in order to decrease the money supply. This is contractionary monetary policy of the Federal Reserve. As interest rates are indirectly affected by open market operations, the Federal Reserve sells securities on the open market to reduce the amount of money in circulation to combat rising inflation in the economy.

(b) The federal funds rate, the interest rates charged on the loans to individuals and firms and the rates of bank deposits will increase. As a result, the demand for bank deposits will increase and the demand for other debt securities will decrease. This in turn will increase the yield offered on these instruments.

4 0
3 years ago
Chelsea Fashions is expected to pay an annual dividend of $1.26 a share next year. The market price of the stock is $24.09 and t
Stells [14]

Answer:

a. 7.83 percent

Explanation:

This is calculated by using the Gordon growth model (GGM) formula as follows:

P = d / (r - g) ……………………………………… (1)

Where;

P =  market price of the stock = $24.09

d = next year annual dividend = $1.26

r = cost of equity = ?

g = dividend growth rate = 2.6%, or 0.026

Substituting the values into equation and solve for r, we have:

24.09 = 1.26 / (r - 0.026)

24.09 (r - 0.026) = 1.26

24.09r - 0.62634 = 1.26

24.09r = 1.26 + 0.62634

24.09r = 1.88634

r = 1.88634 / 24.09

r = 0.0783038605230386, or 7.83038605230386%

Rounding to 2 decimal places. we have:

r = 7.83%

Therefore, the correct option is a. 7.83 percent.

3 0
3 years ago
Which of these cancellations of debt would be includable in income?
motikmotik

Answer:

Recourse debt.

Explanation:

Cancelled recourse debt are included as income and are taxable. Taxpayer get the benefit for using the money but does not have burden to repay the amount. These are mainly, prizes, awards on winning any contest etc. Debt which are forgiven or cancelled by lender are considered as Income and taxable. The law say that income from discharge of indebtness are included as income.

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3 years ago
Increasing the batch size on a resource with setups always increases the capacity of the resource. True or false?.
11111nata11111 [884]

false,Increasing the batch size on a resource with setups always increases the capacity of the resource.

<h3>What is resource?</h3>

All materials available in our environment that are technologically accessible, economically possible, and culturally sustainable that assist us to satisfy our needs and desires are referred to as resources.

All materials available in our environment that are technologically accessible, economically possible, and culturally sustainable that assist us to satisfy our needs and desires are referred to as resources. Resources are divided into two types based on their availability: renewable and non-renewable resources. They can also be characterized as actual or potential based on their level of development and use, as biotic or abiotic based on their origin, and as ubiquitous or localized based on their distribution (private, community-owned, national and international resources).

To know more about resource follow the link:

brainly.com/question/24514288

#SPJ4

5 0
2 years ago
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