Answer:
a) diluted earnings per share = 0
Explanation:
Diluted earnings per share (DEPS) is a recalculation of the basic EPS. The difference between DEPS and EPS is, EPS represents the current position of earnings per share. No changes in number shares and/or earnings in the future are incorporated in the basic EPS.
Whereas DEPS is a representation of not only the current position of earnings and shares but also includes the commitments an entity has already made whose occurrence may result in an increase/decrease in the amount of earnings and/or number of shares. For example, in the question Culver Company has issued 10-year convertible bonds which right now have no impact on basic EPS but if in the future these bond holders exercise their right of conversion, this would result in an increase in number of ordinary shares hence decreasing/diluting the basic EPS. The entities use DEPS to show shareholders the impact of such commitments on the basic EPS to improve their decision making.
So in 2017 none of the bonds were converted therefore no diluted earnings per share is calculated in 2017.
If all of the bonds were converted in 2017 the DEPS would have been calculated as follows:
The formula for calculating DEPS is as follows;
DEPS = (Net income + interest savings) ÷ number of ordinary shares + increase in ordinary shares as a result of conversion.
Tax savings as a result of conversion=$128400 ($2140000×6%). Because if bond holders convert into ordinary shares then Culver company will not have to pay them interest and hence the amount of interest is saved.
Increase in ordinary shares upon conversion= 29960 ($2140000÷$1000=2140 bonds. Each bond is convertible into 14 shares therefore, 2140×14=29960).
Now Lets calculate DEPS as follows;
DEPS = ($296000+$128400) ÷ 91000+29960
DEPS =$424400÷120960
DEPS = $3.5
Answer: 4) Under the business analysis stage, if the new product satisfies the company's objectives, the product then moves to the product development stage.
Explanation:
The Business Analysis stage of the New Product Development Process is a more in-depth analysis of the product to find out the viability of the product in the market and what it means for the firm.
Here the big questions are asked such as;
- The Cost of the product to produce
- If adequate profit will be generated
- Projected market demand
- Existing competitors etc
Once these questions have been answered and other analysis made and the company is satisfied, the product can then move to the Product Development Stage.
Answer:
B)secure industries that are expected to grow.
Explanation:
The other person was right but just accidently said A) instead of B)
Hope this helps! :D
Answer:
$1,950 more than expected
Explanation:
In this question ,we have to compare the revenues based on expected and the actual
So, the expected revenues would be
= Number of customers × per hour rate × expected time spent
= 30 customers × $26 × 8 hours
= $6,240
And, the actual revenues would be
= Number of increased customers × per hour rate × average time spent
= 42 customers × $26 × 7.5 hours
= $8,190
The revenue is increased by
= $8,190 - $6,240
= $1,950 more than expected
This is the answer but the same is not provided in the given options
Answer: Reminder
Explanation:
The reminder advertising is one of the type of marketing advertisement strategy that is used for reminding about the various types of products and the services in the market and this strategy is also used for introducing the new features and characteristics in the existing products.
The main objective of the reminder advertisement is that it basically using the promoting or the advertising strategy for targeting the customers or users about the goods and the services ion the market.
According to the given scenario, a chocolate manufacturer is basically using the reminder advertising during the Christmas. Therefore, reminder advertising is the correct answer.
