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NikAS [45]
3 years ago
7

aspela Corp. had the same capital structure in year 7 and year 8, consisting of the following: Preferred stock, $12 par, 5% cumu

lative, 20,000 shares issued and outstanding $ 240,000 Common stock, $6 par, 250,000 shares issued and outstanding 1,500,000 Caspela reported net income of $600,000 for year 8. No preferred dividends were paid during year 7, but Caspela paid $20,000 in preferred dividends in year 8. In its year 8 income statement what amount should Caspela report as basic earnings per share
Business
1 answer:
Shtirlitz [24]3 years ago
8 0

Answer:

$2.35 per share

Explanation:

 The computation of the earning per share is shown below:

Earning per share = (Net income - preference dividend) ÷ (Number of shares outstanding)

= ($600,000 - $12,000) ÷ (250,000 shares)

= $588,000 ÷ 250,000 shares

= $2.35 per share

The preference dividend is

= $240,000 × 5%

= $12,000

We simply applied the above formula

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An investor, such as a bank, may prefer to invest in securities backed by a pool of mortgages purchased in the secondary market
kati45 [8]

Answer:

b. mortgage backed securities diversify credit risk for the investor.

Explanation:

An investor, such as a bank, may prefer to invest in securities backed by a pool of mortgages purchased in the secondary market rather than in an equal dollar amount of mortgage loans because <u>mortgage backed securities diversify credit risk for the investor.</u>

In Mortgage Backed Securities, credit risk is diversified as there are many borrowers and investors between whom credit risk diversifies. So that makes investor such as bank prefer the option.

8 0
3 years ago
Which of the following is an example of a career in public safety?
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5 0
3 years ago
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Given the list of accounts below, identify which of them would appear on a balance sheet. (Check all that apply.)
aksik [14]

Answer:

(A) Accounts Payable - Liabilities

(D) Equipment  - Assets

(E) Supplies  - Assets

(F) Retained earning - Owner's Equity

(H) Cash  - Assets

Explanation:

The major categories in a balance sheets are: Assets, Liabilities and Owner's Equity,

Assets are many things (as equipment, machinery, Receivables, etc)  that belongs to the company, please see details in the answer.

Liabilities represent the obligations of the company with all kind of creditors.

And finally Owner's Equity it's the Capital that support part of the Assets along with the Liabilites.

4 0
2 years ago
John would like to move from the city into the suburbs and has been saving up a large down payment for a home. Which is the most
Simora [160]
Im 100 percent sure that the anser is c
3 0
3 years ago
Kendall’s Home Decorators believes that the demand for its services will expand greatly because a real-estate developer has just
gtnhenbr [62]

Answer: The managers of Kendall’s Home Decorators are making a projection for the future, also known as a <em><u>forecast.</u></em>

<em>Forecasting is know as the technique of predicting future supported on past and present event or data , commonly done by analyzing trends. </em>

<em>Here in this case the managers of Kendall’s Home Decorators are predicting the demand.</em>

<u><em>Therefore the correct option is (a)</em></u>

7 0
3 years ago
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