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nlexa [21]
3 years ago
6

Venzuela Company’s net income for 2020 is $50,000. The only potentially dilutive securities outstanding were 1,000 options issue

d during 2019, each exercisable for one share at $6. None has been exercised, and 10,000 shares of common were outstanding during 2020. The average market price of Venzuela’s stock during 2020 was $20.
Compute diluted earnings per share.
Business
1 answer:
aev [14]3 years ago
4 0

Answer:

$4.67 per share

Explanation:

The calculation of the diluted earning per share is given below:

= (Total income - preference dividends) ÷ (outstanding shares + diluted shares)

where,

Total income is $50,000

Outstanding shares is 10,000

And, the diluted shares is computed by following calculations

Amount paid towards shares = Options issued × Exercise price per share

= 1,000 × $6

= $6,000

And,

Value of options = Amount paid towards shares ÷ Current market price

= $6,000 ÷ $20

= 300

Therefore,

Diluted shares is

= Options issued - value of options

= 1,000 - 300

= 700

So Diluted Earnings per share is

= ($50,000) ÷ (10,000 + 700)

= $4.67 per share

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Jobisdone [24]

Answer:

There are no barriers to entry.

5. Both buyers and sellers are price takers

.7. Firms’ products are identical.

Explanation:

A perfect competition is characterised by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.

In the long run, firms earn zero economic profit. If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.

Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.

A monopoly is when there's only one firm operating in an industry.

I hope my answer helps you

6 0
2 years ago
Read 2 more answers
Match the business strategies with their characteristics.
zavuch27 [327]

Answer:

The correct answer is : A-Y, B-Z, C-X

Explanation:

Niche is a business strategy in which a specific buyer group or regional market is focused.

Imitation is the strategy of adopting the best practices of another company usually a firm which was first in the market. It is a low-cost strategy.

High-speed strategy concentrates on speed. It is based on the belief that time is money.

3 0
2 years ago
Which of the following is NOT a step in the strategic planning process?A) defining the company missionB) setting company objecti
Colt1911 [192]

Answer:

Which of the following is NOT a step in the strategic planning process?

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Explanation:

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4 0
3 years ago
The following transactions are for Kingbird Company.
raketka [301]

Answer and Explanation:

The Journal entries are shown below:-

1. Account Receivable Dr, $450,000  

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(Being credit sales is recorded)

here we debited the accounts receivable as it increased the assets and we credited the sales revenue as it also increased the sales.

Cost of goods sold Dr, $310,000

         To Inventory $310,000

(Being Cost of goods sold is recorded)

here we debited the cost of goods sold as it increased the expenses and we credited the inventory as it decreased the assets

2. Sales return and allowances Dr, $ 22,000

         To Account Receivable $22,000

(Being sales return is recorded)

here we debited the sales return and allowances as it increased the sales return and we credited the accounts receivable as it decreased the assets

3. Cash Dr, $423,720

Sales discount Dr, $4,280 ($428,000 × 1%)

     To Account Receivable $428,000   ($450,000 - $22,000)

(Being cash and sales discount is recorded)

Here we debited the cash and sales discount as it increased the assets and sales discount and we credited the accounts receivable as it decreased the assets

8 0
3 years ago
True or false: the student with this role should never submit an asking price of less than $10.50.
Gwar [14]
That should be false because it says never and the person is student
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