1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Taya2010 [7]
3 years ago
8

Frankfort Corporation purchases an investment in Bradley, Inc. at a purchase price of $9.8 million cash, representing 40% (at bo

ok value) of Bradley. During the year, Bradley reports net income of $1,680,000 and pays $413,000 of cash dividends. At the end of the year, the market value of Frankfort’s investment is $11.9 million. What amount of equity earnings would be reported by Frankfort Corporation? Select one:A. $165,000B. $672,000C. $507,000D. $1,267,000E. None of the above
Business
1 answer:
vazorg [7]3 years ago
7 0

Answer:

B. The amount of equity reported by Frankfort Corporation is $672,000

Explanation:

Equity earnings

= Frankfort's share in net income of Bradley

= 1,680,000 * 40%

= 672,000

Option B

Please comment if you face any issues****************

You might be interested in
A rapidly growing company just paid a dividend of $1.50 a share. For the next three years, the earnings growth rate is projected
Lelu [443]

Answer:

$41.66

Explanation:

Let us assume the dividend in year n be denoted by Dn and the Stock price by Pn

Given that,

D0 = $1.50

Now

Growth rate for next 3 years

g1 = 15%

D1 = D0 × (1 + g1)

    = 1.50 × (1 + 0.15)

   = 1.725

D2 = D1 × (1 + g1)

= 1.725 × (1 + 0.15)

= 1.984

D3 = D2 × (1 + g1)

= 1.984 × (1 + 0.15)

= 2.282

Subsequent Growth rate = g2 = 4%

Now  

D4 = D3 × (1 + g2)

     = 2.282 × (1 + 0.04)

     = 2.373

So, According to Gordon's Growth Rate,

P3 = D4 ÷(r - g2)

P3 = 2.373 ÷ (0.09 - 0.04)

    = $47.46

Now  

Value of Stock now  is

= P0

= D1 ÷ (1 + r) + D2 ÷ (1 + r)^2 + D3 ÷ (1 + r)^3 + P3 ÷ (1 + r )^3

= 1.725 ÷ (1 + 0.09) + 1.984 ÷ (1 + 0.09)^2 + 2.282 ÷ (1 + 0.09)^3 + 47.46 ÷ (1 + 0.09)^3

= $41.66

4 0
3 years ago
According to Herman, one of the differences of managing a nonprofit versus a for-profit corporation is
marusya05 [52]
Managing because it's non profit
4 0
3 years ago
Which activity relates to judging the seriousness or gravity of a given problem?
yKpoI14uk [10]

B. Evaluation  

Evaluating means to systematically determine somethings merits and significance, including the seriousness or gravity of a problem.

3 0
3 years ago
Read 2 more answers
Suppose that a chicken farm uses a nearby stream to dispose of the wastes released by its chickens. These wastes flow downstream
Julli [10]

Answer:

d. Charities

Explanation:

Charity is one  the ways of solving or dealing with externalities that affect a society, without the intervention of the government. This involves the effort of a charitable organization in raising enough money to do something useful for the society to mitigate such externalities affecting it.

As stated in the question above, we can see that the environmental organization is a charitable organization, who have taken it upon itself to advance the course of campaigning against far’s pollution. It is a nonprofit organization that raises money through donations, in order to help finance the campaign. Their main objectives focused on the well-being  the local community.

5 0
3 years ago
1. Keira’s Kitchen Company presented the following data: Net Income $2,500,000 Preferred Stock, 50,000 shares outstanding, $100
GarryVolchara [31]

Answer:

Earnings Per Share (EPS) = $1.18

Explanation:

We know,

Earnings Per Share (EPS) = \frac{Net Income - Preferred Dividend}{No. of shares outstanding}

Here,

Net Income = $2,500,000

Preferred Dividend = Total preferred stock in dollar x cost of preferred stock

Preferred Dividend = $5,000,000 x 8% = $400,000

No. of shares outstanding table is shown below (Weighted):

Shares outstanding + Additional shares - Treasury stock =

[750,000 x stock split] + [300,000 x (8/12) x stock split] - [150,000 x (5/12) x stock split]

= (750,000 x 2) + (200,000 x 2) - (62,500 x 2)

= 1,500,000 + 400,000 - 125,000

= 1,775,000

Now, EPS = \frac{2,500,000 - 400,000}{1,775,000}

EPS = 1.18 (rounded to 2 decimal places)

<em>Note:</em> 1. As, there is a stock split of 2-for-1, that's why we multiply the stock by 2.

2. Since additional shares are issued on 1st May, therefore, the weight from May to December is for 8 months. Repurchased or Treasury stock should be removed from number of shares.

7 0
3 years ago
Other questions:
  • At the beginning of the call, the team members ask how one another is doing and mention the weather. What piece of advice for vi
    10·1 answer
  • Which term refers to the beginning of the constitution?
    14·1 answer
  • Many people believe that pure monopolies charge any price they want to without affecting sales. Instead, the output level for a
    7·1 answer
  • Pennewell Publishing Inc. (PP) is a zero growth company. It currently has zero debt and its earnings before interest and taxes (
    8·1 answer
  • The following data is from the income statement of Ralston Company: Revenue$36,000 Cost of goods sold (14,400) Operating expense
    8·1 answer
  • Which of the following is a good reason to have a financial reserve that's larger than normal? (Select the best answer.) a. Your
    13·1 answer
  • Andrew Industries purchased $165,000 of raw materials on account during the month of March. The beginning Raw Materials Inventor
    7·1 answer
  • The Buck Store is considering a project that will require additional inventory of $216,000 and will increase accounts payable by
    6·1 answer
  • On June 13, the board of directors of Siewert Inc. declared a 2-for-1 stock split on its 20 million, $5.00 par, common shares, t
    13·1 answer
  • The new-product development process is:
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!