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Ede4ka [16]
3 years ago
15

Financial information for Forever 18 includes the following selected data (in millions): ($ in millions) 2018 2017 Net income $

156 $ 188 Preferred stock dividends $ 23 $ 18 Average shares outstanding (in millions) 300 400 Stock price $ 11.87 $ 10.82 Required: 1-a. Calculate earnings per share in 2017 and 2018
Business
1 answer:
e-lub [12.9K]3 years ago
6 0

Answer:

$0.4433 and $0.425

Explanation:

The computation of the earning per share is shown below:

Earning per share is

= (Net income - preference dividend) ÷ (average shares outstanding)

For 2017, it is

= ($156 - $23) ÷ (300 shares)

= $0.4433

For 2018, it is

= ($188 - $18) ÷ (400 shares)

= $0.425

We simply applied the above formula so that the earning per share could be come for both the years

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Sheridan Company declared a $229000 cash dividend. It currently has 12300 shares of 4%, $100 par value cumulative preferred stoc
dem82 [27]

Answer and Explanation:

The computation is shown below:

For preferred shareholders

The dividend is

= 12,300 shares × 4% × $100

= $49,200

For two years, it would be

= $49,200 × 2

= $98,400

And, the total cash dividend declared is $229,000

So, the cash distribute to common stockholder is

= $229,000 - $98,400

= $130,600

hence, the cash distribute to common stockholder is $130,600

5 0
3 years ago
Bill is the owner of M.E. Inc., which produces miniature internal combustion engines that are used to operate hydraulic systems
Anna11 [10]

Answer:

ME should make the investment because it results in not only higher market share but also a $24,000 increase in profits.

Explanation:

Currently ME's marketing expenditures represent 25% of the industry's marketing expenditures and it matches his market share. Using the competitive parity approach, three additional market share points should cost $120,000 ($40,000 for each point) and should increase gross profits to a total of $1,344,000 ($144,000 increase). The difference between incremental revenue and incremental expenses = $144,000 - $120,000 = $24,000.

4 0
3 years ago
In coming years, high-tech growth areas such as computers, biotechnology, and robots are likely to experience a:
Sergio039 [100]

Answer:

C. shortage of skilled labor.

Explanation:

The invention of high-tech (computers, biotechnology, robots, drones, self driving vehicles and so an) is reducing the involvement of skill human labor which will continue incoming years. For example humans carryout the task of carrying-out calculation several years ago, but in recent years computers carry out such works and at a faster pace. Also routine human works such as arranging, bottling, pasting of labels can be carried-out by well programmed out and trained robots. These and many more will cause the shortage of labor(human) in coming years.

5 0
3 years ago
Assume there are two people in a society. Person A is willing to pay $140 to have one unit of a public good produced and Person
Shtirlitz [24]

Answer:

$300

Explanation:

Given:

Society A

Society B

Society A will pay $140 per unit  

Society B will pay $160 per unit  

Commonly pay $140 for two units produced.

Computation:

Society will pay total amount for the public goods = $160 + $140  

Society will pay the total amount for the public goods = $300

Therefore, $300 Is the total amount paid by society.

7 0
4 years ago
Your company incurs a cost for factory rentfactory rent​, ​which, in the short​ run, is fixed. What happens to this cost in the
mixas84 [53]

Answer:

A. becomes a variable cost

Explanation:

Fixed costs are the expenses that remain constant in a period. During the period under review, fixed costs do not change regardless of the level of output. Fixed costs are mostly made up of overheads such as rent , depreciation, and administrative salaries.

Fixed cost remains constant in a particular financial year. In the long run,  business budgets and projections tend to change, resulting in changes to the fixed cost. In other words, in the long run, fixed costs will change. Therefore, in the long run, all costs are variable expenses.

5 0
3 years ago
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