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ASHA 777 [7]
3 years ago
14

Elite Trailer Parks has an operating profit of $307,000. Interest expense for the year was $32,000; preferred dividends paid wer

e $31,600; and common dividends paid were $41,800. The tax was $65,100. The firm has 21,400 shares of common stock outstanding. Required:a. Calculate the earnings per share and the common dividends per share for Elite Trailer Parks.b. Wnat was the Increase in retained eings for the year?
Business
1 answer:
ollegr [7]3 years ago
7 0

Answer:

a. $8.33

$1.95

b.$136,500

Explanation:

The computation of earnings per share and the common dividends per share is shown below:-

a. Earning per share = Earnings Available to Common Stockholders ÷ Number of Shares of Common Stock Outstanding

= $178,300 ÷ 21,400

= $8.33

Dividends per Share = $41,800 ÷ 21,400

= $1.95

b. Increase in retained earnings = Operating Profit (EBIT) - Interest expense - Taxes - Preferred dividends - Common dividends

= $307,000 - $32,000 - $65,100 + $31,600 + $41,800

= $136,500

We simply applied the above formulas

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The debt to equity ratio for the period, based on the total liabilities and total equity, would be  1.31

<h3>How to find the debt to equity ratio?</h3>

The debt to equity ratio shows the amount of debt that a company has as a ratio of the debts to the equity that the company has.

The debt to equity ratio can be found by the formula:

= Total liabilities / Total Equity

Total liabilities = $16, 113, 000

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5 0
1 year ago
A firm producing good y recently increased monthly production from​ 1,500 units to​ 2,000 units. this had no impact on the marke
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6 0
3 years ago
7. Identifying costs of inflation Bob manages a grocery store in a country experiencing a high rate of inflation. He is paid in
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Answer:

Shoe-leather Costs.

Explanation:

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What he can't spend, he converts into a more stable foreign currency for a steep fee. This is an example of the Shoes-leather costs of inflation.

A Shoe-leather costs refers to the costs of time, energy and effort people expend to mitigate the effect of high inflation on the depreciative purchasing power of money by frequently visiting depository financial institutions in order to minimize inflation tax they pay on holding cash.

Metaphorically, it ultimately implies that in order to protect the value of money or assets, some people wear out the sole of their shoes by going to financial institutions more frequently to make deposits.

Hence, Bob is practicing a shoe-leather cost of inflation so as to reduce the nominal interest rates.

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3 years ago
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Answer:

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Book value per share of Red Inc = $1.20 per share

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Net gain = Sale price - Book value

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Total gain for the year end on June 30 will be

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8 0
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