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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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What labor-related factors should be considered when deciding where to locate production?
ycow [4]

Answer and explanation:

Labor is one of the main factors that can drive a company to success or failure. When deciding where to locate production the labor-related factors to take into account are labor skills (<em>employees' knowledge</em>), labor costs and productivity (<em>wages and how their levels can affect employees' performance</em>), and labor laws (<em>employees' benefits according to where they work</em>).

5 0
3 years ago
In​ 1916, the Ford Motor Company sold​ 500,000 Model T Fords at a price of​ $440. Henry Ford believed that he could increase sal
kirza4 [7]

Answer: they costed alot of money

Explanation:

5 0
3 years ago
On September 1, 2021, Hiker Shoes issued a $100,000, 8-month, noninterest-bearing note. The loan was made by Second Commercial B
djyliett [7]

Answer: 11.87%

Explanation:

Effective interest rate on this loan is:

= Interest payment / (Note - Interest payment) * 12/8 months

Interest payment:

= Note * Interest rate * 8/12 months

= 100,000 * 11% * 8/12

= $7,333

Effective interest:

= 7,333 / (100,000 - 7,333) * 12/8

= 11.87%

6 0
3 years ago
Suppose that a property can generate cash flows of $10,000 per year for eight years and can sell for $80,000 at the end of the i
Valentin [98]

Answer:

$90,669.85

Explanation:

Present value is the sum of discounted cash flows.

Present value can be calculated using a financial calculator

Cash flow each year year from year one to seven = $10,000 

Cash flow for year in year eighth = $10,000 + $80,000 =$90,000

Discount rate = 10%

Present value = $90,669.85

To find the PV using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

I hope my answer helps you

5 0
3 years ago
In recent years, there has been a large push for an increase in the use of renewable resources to produce the energy we need to
GaryK [48]

Hi there!

Answer:

Total cost with gasoline : $ 62.50

Total cost with E85 : $63.33

Explanation:

First, we must calculate the consumption in gallons of each type of fuel.

<em>For gas </em>

500 miles/28 miles * 1 gallon = 17.86 gallons

<em>For E85  </em>

500 miles/22.5 miles * 1 gallon = 22.22 gallons

With that, all we have to do is calculate the total cost in dollars .

<em>For gas </em>

17.86 galons * $3.5/gallon = $62.50

<em>For E85 </em>

22.22 galons * $2.85/gallon = $63.33

6 0
3 years ago
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