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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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Job cost sheets contain entries for actual direct material, actual direct labor, and actual manufacturing overhead cost incurred
adelina 88 [10]

Answer:

True

Explanation:

A cost sheet is a statement that contains all the cost incurred on a cost unit or a cost centre. A  typical cost sheet will accumulate all the direct and indirect material consumed in the production of a product. Also included in the cost sheet is direct labor incurred in the making of a product including allocated overhead. With this, the margin on a product can be observed from a cost sheet.

7 0
2 years ago
Synovec Co. is growing quickly. Dividends are expected to grow at a rate of 20 percent for the next three years, with the growth
user100 [1]

Answer:

The  current share price is $71.05

Explanation:

P3 = D3(1 + g)/(R – g)

    = D0[(1 + g1)^3](1 + g2)/(R – g)

    = [$1.45*(1.20)^3(1.08)]/(0.11 – 0.08)  

    = $90.20

The price of the stock today is the PV of the first three dividends, plus the PV of the Year 3 stock price given by:  

P0 = $1.45(1.20)/1.11 + $1.45[(1.20)^2]/1.112 + $1.45[(1.20)^3]/1.113 + $90.20/1.113

    = 1.568 + 1.695 + 1.832 + 65.958

    = $71.05

Therefore, The  current share price is $71.05

7 0
3 years ago
Braxton's Cleaning Company stock is selling for $34.75 per share based on a required returmn of 10.4 percent. What is the the ne
mash [69]

Answer:  Po = D1/Ke + g

               $34.75 = D1/0.104 + 0.039

   $34.75 -0.039 = D1/0.104

                $34.711 = D1/0.104

                        D1  = 34.711 x 0.104

                        D1 = $3.61

Explanation: In this question. there is need to apply the formula for determining the current market price of a common stock. The current market price of a common stock is a function of next dividend capitalised at the appropriate cost of equity plus growth rate. in addition, we need to make the next dividend the subject of the formula.

5 0
3 years ago
What is the purpose of NCUA Lending Regulations?
Dafna11 [192]
The purpose of NCUA Lending regulation is to create stability and to keep a fair condition in a lending process. A foul or a fraud in the lending process could easily have been made if there is a bad intention in either creditor or debtor in the lending process<span>. An intention for not paying a credit agreement is one of this foul example.</span>
8 0
3 years ago
Read 2 more answers
g A review of Parson Corporation's accounting records found that at a volume of 146,000 units, the variable and fixed cost per u
Ganezh [65]

Answer:

The total cost is $1,796,600

Explanation:

Fixed costs are costs that do not change with the change in the volume of good or service sols, but under certain circumstances, when the fixed cost is a direct cost, it can vary on a per unit basis.

Variable costs are costs that change with the change of the volume of goods or service.

Total number of units = 138,200

variable cost per unit = $8

Total variable cost = 8 × 138,200 = 1,105,600

Fixed cost per unit = $5

Total fixed cost = 5 × 138,200 = 691,000

Total cost = 1,105,600 + 691,000 = $1,796,600

4 0
3 years ago
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