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3 years ago

When a corporation has both preferred and common stock outstanding, earnings per share is computed by dividing net income

Business

1 answer:

vodka [1.7K]3 years ago

5 0

Answer:

D) less preferred dividends by weighted average of common shares outstanding.

Explanation:

When you want to calculate earnings per stock, you will do it for common stocks, not preferred stock. Therefore the dividends paid (or payable) to preferred stockholders must be deducted from net income, and then you divide net income by common stocks outstanding to get earnings per stock.

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Free Motion Enterprises paid a $2.20 per share annual dividend last week. Dividends are expected to increase by 3.75 percent ann

Tems11 [23]

Answer:

$20.29

Explanation:

The computation of the today share price is shown below:

= Next year dividend ÷ (Required rate of return - growth rate)

where,

Next year dividend

= $2.20 + $2.20 × 3.75%

= $2.20 + 0.0825

= $2.2825

The other items values would remain the same

So, the today price would be

= $2.2825 ÷ (15% - 3.75%)

= $2.2825 ÷ 11.25%

= $20.29

6 0

3 years ago

Suppose Raphael and Susan are playing a game in which both must simultaneously choose the action Left or Right. The payoff matri

erica [24]

Answer: Please refer to Explanation

Explanation:

The Dominant Strategy in a game is the strategy that a player will choose that will provide them with the highest payoff regardless of what the other player does.

In the above, the dominant strategy will be for RAPHAEL to choose LEFT.

By choosing left Raphael makes a payoff of 4 if Susan picks Left as well and a Payoff of 6 if Sudan picks Right. This is better than him picking Right and he will get a Payoff of 3 if Susan chooses Right as well.

The Nash Equilibrium is the strategy where both are making the best that they can given the strategy of the other player and deviating from it will give them less pay out.

The dominant strategy therefore is for RAPHAEL to choose LEFT and for SUSAN to choose RIGHT.

This is because Raphael will pick Left as it maximises their payoff and Susan will then pick a strategy that gives her the highest payoff based on Raphael's decision which is to go RIGHT.

7 0

3 years ago

Asset sales, Usage fees, Brokerage frees, and advertising are all ___?

lapo4ka [179]

Answer:

sources of business revenue

Explanation:

Revenue is the money a business gets from its normal trading activities. It is the income a business obtains through the sales of goods and services to customers. Revenue includes discounts received and purchase returns.

The sale of an asset is revenue to a business because it will receive money from the transaction. Usage fees, Brokerage fees, and advertising are money that businesses receive for offering services.

7 0

3 years ago

A self-employed person deposits $2,000 annually in a retirement account (called a Keogh or H.R. 10 plan) that earns 8 percent. U

lana [24]

Answer:

$146,212.00

Explanation:

PMT which is the annual savings is $2000

Rate is 8%

The annual savings would last for 25 years(65-40)

FVIFA FACTOR=(1+r)^n-1/r

r=8%

n=25

FVIFA FACTOR=(1+8%)^25-1/8%

FVIFA FACTOR=(1.08)^25-1/0.08

FVIFA FACTOR=(6.848475196-1)/0.08=73.106

Amount in the account at retirement=PMT*FVIFA FACTOR

Amount in the account at retirement=$2000*73.106=$146,212.00

6 0

2 years ago

Jason is going to play golf this afternoon and has to choose between two different golf courses. The greens fees to play each ar

yuradex [85]

Answer:

Explanation:

the relevant total cost is 4 dollars

3 0

2 years ago