Answer:
$4.67 per share
Explanation:
The calculation of the diluted earning per share is given below:
= (Total income - preference dividends) ÷ (outstanding shares + diluted shares)
where,
Total income is $50,000
Outstanding shares is 10,000
And, the diluted shares is computed by following calculations
Amount paid towards shares = Options issued × Exercise price per share
= 1,000 × $6
= $6,000
And,
Value of options = Amount paid towards shares ÷ Current market price
= $6,000 ÷ $20
= 300
Therefore,
Diluted shares is
= Options issued - value of options
= 1,000 - 300
= 700
So Diluted Earnings per share is
= ($50,000) ÷ (10,000 + 700)
= $4.67 per share
Answer:
I strongly believe that the correct answer is B. Im going to give an example. if we take into account a company like Honda produces 4000 units, for example Mercedes Benz produces 7000 units, this is very important for welfare economics which tries to put values on consumption.
Explanation:
Answer:
C. They fail to incorporate cash flows beyond the first year of the analysis.
Answer:
a.Preferred Stock for $475,300
and Paid-In Capital in Excess of Par—Preferred Stock for $164,900.
Explanation:
The par value it's a minimum price that the company assigns to the issued shares only to be used in the accounting system but it's not related to market price.
This par value will be shown as a separate value in the section of stockholders' equity, reported under the item Paid-in-Capital, the difference with the market price it's reported as Preferred Stock.
Cash $640.200 Debit
Preferred Stock $475.300 Credit
Paid-In Capital in Excess of Par—Preferred Stock $164.900 Credit
i believe it is A, you’re welcome!
