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attashe74 [19]
3 years ago
13

Analysts predicted earnings per share (EPS) for your company to be $0.XX at the close of 20XX. How does this compare to actual E

PS for 20XX? If actual EPS is higher than the analysts’ prediction, what factors contributed to the success? If actual EPS is lower than the prediction, how will you explain the shortfall to your investors? Is there anything you did or could have done to meet/exceed the prediction?
Business
1 answer:
nikdorinn [45]3 years ago
7 0

Answer and Explanation:

Earnings per Share, EPS = <u>Net Income dividend of preferred stock</u>

                                            Number of stock outstanding

EPS  depends on the earnings and its dilution due to increase in preferred stock also it depends on the net income earned

When EPS is higher than analyst prediction,

this may be due to increase in the net income

or

payback of common stock or preferred stock

thereby leading to reduction in the number of stock outstanding

When EPS is lower than analyst prediction

this would be due to reduction in the net income

or

increase of stock or preferred stock due to fresh issue

Insurance against issues that could lead to reduction on income and inrease in the activities that will lead to net income increase can help meet or surpass analyst prediction

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You buy a 6% coupon $1,000 par T-bond 59 days after the last coupon payment. Settlement occurs in two days. You become the owner
AfilCa [17]

Answer:

dirty price: 1,225.39

Explanation:

When we purchase the bond, we are paying the bond and the accrued interest

<em>bond price:</em> 1,000 x 120.59375/100 = 1,205.9375‬ = 1,205.94

accrued interest at purchase:

face value x bond coupon rate x time

1,000 par value x 6% x 59/(59+2+121) =

1,000 x 0.06 x 59/182 = <em>19,45</em>

Total amount for the bonds: 1,205.94 + 19.45 = 1,225.39

4 0
3 years ago
Using these data from the comparative balance sheet of K. Leen Company, perform vertical analysis.
iogann1982 [59]

Answer and Explanation:

The vertical analysis is presented below:

Comparative Balance Sheet

<u>Particulars Dec 31, 2020      Percentage    Dec 31, 2019            Percentage </u>

(a)                      [(a) ÷ $3200000] × 100 (b)   [(b) ÷ $3000000] ×100

Accounts

receivables $400,000            12.5%             $400,000                  13.3%

Inventory        $864,000             27.0%           $600,000                   20.0%

Total Assets  $3,200,000          100.0%           $3,000,000              100.0%

4 0
2 years ago
Multiple Choice Question 121 The following information pertains to Ortiz Company. Assume that all balance sheet amounts represen
olasank [31]

Answer:

Inventory TO 5.5

This means Ortiz sales his inventory 5.5 times per year.

Explanation:

Inventory turnover for Ortiz

\frac{COGS}{Average Inventory} = $Inventory Turnover

​where:

$$Average Inventory=(Beginning Inventory + Ending Inventory)/2

COGS:     66,000

In this case the average inventory is provided already: 12,000

\frac{66000}{12000} = $Inventory Turnover

Inventory TO 5.5

This means Ortiz sales his inventory 5.5 times per year.

5 0
3 years ago
The problem of _________________ arises when an antique dealer knows more about the quality of an item than the potential buyer,
vlada-n [284]

Answer:

Option (D) is correct.

Explanation:

Imperfect information refers to a situation in which both the parties (i.e buyer and seller) have different information. For example; In a market of second hand car industry, the buyer have less information about the car as compared to the seller. In this type of industry, the seller have more information about the condition and quality of used car.

In our case, the seller of antique have more information about the product, so this will lead to give a disadvantage to a potential buyer of antique.

8 0
3 years ago
Read 2 more answers
Mentor Graphics Corporation, a supplier of electronic design automation systems, just announced its second quarter results. Acco
saveliy_v [14]

Answer:

1. Which of the excluded items represent ongoing costs of running the business and which are one-time "special" costs?

it depends on the company and the actual transactions, e.g. equity based compensation might be a one time special cost because it occurred only once and is doubtful that it happens again. But if the company regularly rewards its top managers with this type of compensation, then it is an ongoing cost. E.g. Tesla awarded a HHHHUUUUUUGGGGGGGEEEEEEE bonus to Elon Musk (worth hundreds of millions) but it was a one time event. While many companies use equity compensation on a regular basis.

Severance and related employee "rebalancing" costs generally take place when a company fires a lot of people because it is cutting down some division or product line. Hopefully, they should never happen, and if they do, it should be only a one time event.

Fees paid to consultants and interest expenses are ongoing costs that will probably occur in the future.

Losses related to the abandonment of excess facility space and a facility fire should be one time events. It would be really bad for them to keep happening (same as severance and rebalancing costs)

8 0
3 years ago
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