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Cloud [144]
2 years ago
9

Cracker Company had 2 million shares of common stock outstanding all through 2017. On April 1, 2018, an additional 100,000 share

s were sold and issued. On September 30, 2018, Cracker declared a 2-for-1 stock split. Net income in 2018 and 2017 was $10 million and $8 million, respectively. In the 2018 comparative financial statements, EPS (rounded) would be reported as follows: 2018 EPS 2017 EPS a. $ 2.41 $ 2.00 b. $ 2.41 $ 4.00 c. $ 4.82 $ 4.00 d. $ 4.82 $ 4.00
Business
1 answer:
JulsSmile [24]2 years ago
8 0

Answer:

a. $ 2.41 $ 2.00

Explanation:

Earning per share is the ratio of net Income of the business per outstanding share of the business after deducting the preferred dividend from net earning. It shows how much each stockholder earn against their each share in a specific period.

Earning Per share = Net Income / Outstanding numbers of shares

2017

EPS = $8,000,000/(2,000,000 x 2) = $2.00

As new stock is issued and stock split is declared so, outstanding numbers of shares are changed.

2018

EPS = $10,000,000 / [ ( 2,000,000 x 2 ) + ( 100,000 x 9 / 12 x 2 ) ] = $2.41

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rewona [7]

Answer:

1.37

Explanation:

Given that

Operating income = $45,900

Variable expenses = 10%

Fixed expenses = $17,100

The calculation of operating​ income is shown below:-

Contribution margin = Operating income + Fixed expenses

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= $63,000

So, Operating leverage = Contribution margin ÷ Operating income

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3 years ago
On August 8th the​ three-month risk-free rate of interest in the United States was 3.75 percent and it was 3.00 percent in Japan
weeeeeb [17]

Answer:

The answer is 0.01082

Explanation:

The formula for forward exchange rate is:

F = S x 1+rd/1+rf

where F is the forward exchange rate

S is the spot exchange rate(0.010798)

rd is the foreign currency interest rate(3% or 0.03)

rf is the domestic interest rate(3.75% or 0.0375

Month is 3 months(90days) and total number of days in a year is 360days.

Find find the attached file for calculation

6 0
2 years ago
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Wages

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The cost of labour is broken in direct and indirect cost.

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