1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Aleksandr [31]
3 years ago
6

A company reported net income available to common stockholders of $2,000,000 for the year ended December 31, year 2. The company

had 1,500,000 shares of common stock outstanding as of January 1, year 2, and issued 500,000 additional shares of common stock on May 1, year 2. What amount is the company's basic earnings per share for the year ended December 31, year 2?
Business
1 answer:
bekas [8.4K]3 years ago
7 0

Answer:

$1.12

Explanation:

Basic earnings per share is the standard calculation of the portion of a company's income that is earned or returned on one share of its common stock.

The formula for Basic Earnings Per Share is = Net Profit - Preference Dividend / Weighted Average Number of Shares

Weighted average number of shares can be obtained by multiplying the number of outstanding shares by the portion of the reporting period those shares covered.

Therefore applying the above to the scenario we have: 2000000/ [1500000+(500000*7/12)] = 2,000,000/1,791,667 = $1.12

You might be interested in
Which of the following statements about organic foods is true?
statuscvo [17]
I believe its choice D.
5 0
3 years ago
Sonor Systems undertakes its own machine maintenance. The depreciation on the equipment is $20,000 per year and operating cost i
Pachacha [2.7K]

Answer:

$570,000

Explanation:

Total machine maintenance cost calculation.

Depreciation expenses $20,000

Operating cost

($275,000 MH × $2). $550,000

Total machine machine maintenance cost $570,000

Therefore, the total machine maintenance cost of the machine is $570,000

7 0
3 years ago
Dividends in arrears are dividends on A. cumulative preferred stock that have been declared but have not been paid. B. non-cumul
Romashka [77]

Answer:

The correct answer is letter "A": cumulative preferred stock that have been declared but have not been paid.

Explanation:

Dividends in arrears are dividends that have not been paid in a period on cumulative preferred stock. A company does not necessarily have to pay dividends to its shareholders but the payment becomes cumulative. Under this situation, it is said that the organization has failed to generate enough cash during the year. Besides, there must be a dividend declaration for the dividends in arrears to be liable recognized.

7 0
3 years ago
Starbucks traditionally has relied on a franchising model to expand internationally. But when it came to India, the coffee chain
PtichkaEL [24]

Answer:

joint venture

Explanation:

Traditionally, Starbucks has depended on a model of the franchise to expand globally. However, when it comes to India, another approach was taken by the coffee chain. It allied with Tata Group to creat a joint venture.

A joint venture (JV) is a business deal where 2 or more parties agree to pool their money for a particular task to be accomplished. This role can be a new project or any other operation of the business.

7 0
3 years ago
_________________ is defined as an individual's opinions or experiences about a particular topic
Korolek [52]
A public opinion is defined as an individual's opinions or experiences about a particular topic.
4 0
3 years ago
Other questions:
  • Clancy sells shares in Darling Pool & Spa Company to Eton. Clancy does not deliver the actual possession of the shares to Et
    9·1 answer
  • Larry Mitchell invested part of his $ 24 comma 000 advance at 4 % annual simple interest and the rest at 7 % annual simple inter
    14·1 answer
  • True or false?
    10·1 answer
  • Tamarisk, Inc. sells merchandise on account for $7400 to Cheyenne Corp. with credit terms of 2/15, n/30. Cheyenne Corp. returns
    13·2 answers
  • Suppose that Congress hears about how well you are doing in your economics courses and seeks your advice on creating some public
    11·1 answer
  • If the Fed lowers the required reserve ratio, __________ in the banking system will remain unchanged but __________ will rise. T
    14·1 answer
  • After September​ 11, 2001, the federal government increased military spending on wars in Iraq and Afghanistan. Is this increase
    14·1 answer
  • PLEASE! I need help :): will mark brainliest! Describe Sinek's Golden Circle. What does he use this for? Sinek argues that "peop
    15·1 answer
  • During its first year of operations, Mack's Plumbing Supply Co. had sales of $6,740,000, wrote off $48,600 of accounts as uncoll
    15·1 answer
  • Angela's company requires her to be at work between the hours of 10:00 a.m. and 2:00 p.m. other than that, she is free to create
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!