Answer:
Earning per share is 2.44 dollars.
Explanation:
The earning per share is a financial ratio determine by dividing total profit after tax made by a company in a period with total number of outstanding shares.
The earning per share is calculated below
EPS = $ 415,000/ 170,000 = 2.44 $
This ratio is widely used in stock market and valuation of business.
Answer:
c. $400K
Explanation:
Given that
Offered price for sale = $350K
Asked price = $450K
Worth of the yacht determined by the purchaser = $375K
The Purchase value of yacht = $400K
By considering the historical cost principle, the yacht should be recorded at the purchase price or acquired price or original price i.e $400K in the purchase records so that the reliability of the books could be maintained
A proofreader will look for misspelling, incorrect/ missed punctuation, inconsistencies , etc. Editing, corrects issues at the core of writing like sentence construction and language clarity.
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Answer:
if the flotation costs were 2%, the after-tax cost of debt is 5.10%
if the flotation costs were 11%, the after-tax cost of debt is 4.63 %
Explanation:
<em>After-tax cost of debt = Market Interest × ( 1 - tax rate)</em>
<u>Calculation of the Market Interest </u>
Hint : Use the time value of money principles
Pv = -$1,000
Pmt = $1,000 × 8 % = $80
P/yr = 1
N = 20
Fv = $1,000
YTM = ?
Using a financial calculator, the market interest is 8%
After-tax cost of debt = Market Interest × ( 1 - tax rate)
= 0.08 × (1- 0.35)
= 0.052 or 5.20 %
<u>If Flotation cost is 2%</u>
Net Receipts after flotation cost = Cost × ( 1 - flotation rate)
= 5.20 % × (1-0.02)
= 5.096 % or 5.10% (two decimal places)
<u>If Flotation cost is 11%</u>
Net Receipts after flotation cost = Cost × ( 1 - flotation rate)
= 5.20 % × (1-0.11)
= 4.628 % or 4.63 % (two decimal places)