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masya89 [10]
4 years ago
10

On January 2, 2018, Ava Co. issued at face value $53,300 of 9% bonds convertible in total into 9,649 shares of Ava's common stoc

k. No bonds were converted during 2018. Throughout 2018, Ava had 10,000 shares of common stock outstanding. Ava's 2018 net income was $120,226. The income tax rate is 30%. No potential common shares other than the convertible bonds were outstanding during 2018. The numerator in the diluted earnings per share calculation for 2018 would be: $___________
Business
2 answers:
aalyn [17]4 years ago
4 0

Answer: $123,583.90

Explanation:

Given the following Parameters,

Net income = $120,226,

Interest rate = 9%

Tax = 30%

The following formula then applies,

Diluted EPS = (Net income + Interest after tax)/Total outstanding shares outstanding

Now, Interest(Before tax) = $53,300 * 0.09 = $4797

Now we have to calculate it After Tax

= 4,797 (1-tax rate)

= 4,797(1-0.3)

= $3,357.90

The numerator is,

= (Net income + Interest after tax)

= 120,226 + 3,357.90

= $123,583.90

The numerator in the diluted earnings per share calculation for 2018 would be $123,583.90

puteri [66]4 years ago
3 0

Answer:

$171,927

Explanation:

Formula for diluted earnings per share is \frac{Net Income+(Interest Expense*(1-tax rate))}{Diluted Potential Common Stock}

Therefore the Numerator will be: Net Income+(Interest Expense *(1 - tax rate))

We have :

Ava's 2018 Net Income: $120,226

Interest Expense: $53,300

Tax rate: 30% or 0.03

So we replace the above values in in Numerator:

Numerator = $120,226 +($53,300(1-0.03))

Numerator = $120,226 + $51,701

Numerator = $171,927

Therefore, the numerator in the diluted earnings per share calculation for 2018 would be: $171,927

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Vadim26 [7]

Complete question:

Assume that the Texas legislature is not in session and the economy has gone into recession. What must occur before legislators can act to reformulate policy

A. The legislature as a body must wait for the comptroller to decertify the budget.

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C. The legislature must wait for economic conditions to deteriorate to a point where a constitutional provision allowing deficit spending kicks in.

D. The legislature must wait until the federal government increases monies for state governments.

Answer:

The legislature must wait for a special session to be called.

Explanation:

Once the Texas legislature passes a budget and the governor has acted, after 6 months does the budget go into effect.

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3 years ago
A stock had returns of 12 percent, 16 percent, 10 percent, 19 percent, 15 percent, and -6 percent over the last six years. What
OleMash [197]

Answer:

10.68%

Explanation:

Data provided in the question:

Returns on stock : 12%, 16%, 10%, 19%, 15%, -6%

Now,

Geometric average return on the stock is calculated as:

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Geometric average return

=[ (1 + 0.12)\times(1 + 0.16)\times(1 + 0.10)\times(1 + 0.19)\times(1 + 0.15)\times(1 + (- 0.06)) ]^{\frac{1}{6}}-1

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lukranit [14]

Answer:

In this case, Jack's "human/interpersonal skills" failed. The skills that Jack is failing to use are important for "managers."

Explanation:

From the statement above, we can assume that Jack's position is superior to that of Samantha. He is, probably, the manager. However, he yelled at Samantha last week because she was late. In this case, Jack failed in his "human skills." This is also known as<em> "interpersonal skills,"</em> which is <u>a set of skills related to interacting effectively with other people.</u>

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Answer:

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