Templet Corp. earned net income of $ 256 comma 500 and paid the minimum dividend to preferred stockholders for 2018. Assume that
there are no changes in common shares outstanding during 2018. Templet's books include the following figures:(Click the icon to view the figures.) Read the requirement Requirement 1. Compute Templet's EPS for the year. Select the formula, then enter the amounts to calculate the company's earnings per share for 2018.
1 answer:
Answer:
Earnings per share for 2018 is $5.5
Explanation:
Earning per share is the ratio of net earning of the business per outstanding share of the business after deducting the preferred dividend from net earning.
Net income = 256,500
preferred dividend = 30,000 x 4% = 1,200
Earning per share = ( Net Income - Preferred dividend ) / Outstanding shares
Earning per share = ( $256,500 - $1,200 ) / (48,000 common shares- 1,700 Treasury shares ) = $255,300 / 46,300 share = $5.5 per share
Data for the outstanding shares were missing, Data from attached question is used to calculate the EPS. Please find attached file.
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Answer:
$15960.94 is the amount I will have in my account after 17 years.
Explanation:
Firstly we are given the present value of the investment that we will be saving so it will be $7250. we are further given that this investment will be saved during a period of 17 years at different rates through the 17 years so we are looking for the future value after 17 years therefore we will use the future value investment formula as just only one amount is invested.
The future value formula =
where Fv is the future value of the investment after 17 years,
Pv is the invested amount initially $7250
i is the interest rate which here it is 4% for the first 5 years, then 4.6% after for 4 years, thereafter 5.3% for the remaining 8 years so we will.
n is the number of years of the investment as per their given interest rates, substitute these values to the above mentioned formula:
Fv= $7250((1+4%)^5) ((1+4.6%)^4)( (1+5.3%)^8) then compute on a calculator
Fv = $15960.938 then we round off to two decimal places
Fv = $15960.94 which will be the amount that will be saved after 17 years .