Answer:
The basic and diluted earnings per share for the year ended December 31, 2018 are $ 0.24 / Share and $8.89
/share respectively.
Explanation:
BASIC EPS CALCULATION
The preferred dividend = 30 million x $ 2/share
= 60 Million
Basic EPS = ( Net income - preferred dividends ) / weighted average common shares
= ($840 million - $ 60 Million ) / 100 million
= $ 0.24 / Share
DILUTED EPS CALCULATION
After-tax bond interest expense = $ 2.200 million x 10%
= $ 220 Million
$ 220 Million x (100 + 40%) = $ 308 Million after-tax interest expense.
Shares assume converted to common
Common Shares = 100 Million
Preferred stock = 40 Million
Convertible bonds = 17.0 Million
Total = 157 Million shares outstanding
Diluted EPS = ( $ 840 Million - $60 Million + $308 Million+ $ 66 Million ) / 157 million
= $8.89
/share
Therefore, The basic and diluted earnings per share for the year ended December 31, 2018 are $ 0.24 / Share and $8.89
/share respectively.
Answer:
B) Trusts (except those that are exempt)
Explanation:
The only three entities that are allowed to select a fiscal year are: estates, C corporations and tax exempt entities.
Trusts, along with partnerships, S corporations and personal service corporations mus use the calendar year as their taxable period or the tax year of their owners. Some trusts can change to a different calendar year if they can establish a business purpose for doing so.
Answer:
A.
$0.05
B.
$18,600
C.
30,000 units
Explanation:
Economic order quantity is the quantity at which business incur minimum cost. This is the level of order where the holding cost equals to the ordering cost of the business.
As per given data
Annual Demand = 90,000 batteries
Ordering cost = $250
Carrying cost = $0.046
A.
Annual Holding cost = Holding cost per unit x Annual Demand = $0.046 x 90,000 batteries = $4,140
Opportunity cost = $0.046 X 110% = $0.05
B.
Purchase cost = 90,000 x $0.14 = $12,600
Ordering cost = (90,000/15,000) x $250 = $1,500
Storage cost = $0.05 x 90,000 = $4,500
Total cost of Inventory = $12,600 + $1,500 + $4,500 = $18,600
C.
EOQ = 
EOQ = 
EOQ = 30,000
Answer:
You will have $16,111.99
Explanation:
a) Data and Calculations:
Annual savings $3,500
Years = 4
Interest rate = 5.7%
Future value using finance calculator:
FV (Future Value) $16,111.99
PV (Present Value) $12,907.71
N (Number of Periods) 4.000
I/Y (Interest Rate) 5.700%
PMT (Periodic Payment) $3,500.00
Starting Investment $0.00
Total Principal $14,000.00
Total Interest $2,111.99
b) Your annual savings of $3,500 with 4 deposits will have a future value of $16,111.99 compounded at 5.7% for 4 years with a total principal of $14,000 ($3,500 * 4).
Answer:
Under a) r=0.1;Id=50;Cd=750;P=7 b) P only changes and is now 9.33
Explanation:
a) In a closed economy national savings are equal to investments or:
S d = I d = Y - Cd - G
Id = Y - 100 - 0.8*Y + 500*r - 0.5*G
100 - 500*r = 0.2*Y -100 + 500*r -0.5*G
200 - 1000*r = 0.2*1000 - 0.5*200=100
-1000*r=-100
r= 0.1
i = 0.15
Id = 100 -50 =50
Cd= 100 + 800 - 50 - 100=750
P = Md/Y-2000 i
P= 2100/1000 -300=7
b) If money supply increases to 2800, the price level would be:
P = 2800/Y - 2000*i = 2800/Y- 2000*(i-inflation)
However, since the variables determining real interest rate remained the same, r is also the same or 0.1 and i is 0.15. Consumption and investment remain the same, only price level changes or:
P=9.33
