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Gre4nikov [31]
3 years ago
13

Western Company has net income of $100 million in 2018. If net income in 2019 is $175 million or more, executives will receive 2

million additional shares of common stock. How does this effect the calculation of diluted EPS?
Business
1 answer:
djverab [1.8K]3 years ago
7 0

Answer:

Diluted earnings per share (EPS) measures how EPS would be affected if all convertible securities are turned into common stock. As more convertible securities are turned into common stock, the EPS dilutes or decreases since net income must be divided by a larger amount of stocks.

In this case we are not told how many outstanding common stocks exist, but whatever the number, e.g. 50 million, the effect of the 2 million additional stocks given to the company's executives will reduce the EPS of all the outstanding common stocks. Current EPS = $175 million / 50 million = $3.50 per stock. With 2 million more common stocks, EPS = $175 million / 52 million = $3.37 per stock.

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Why does actual group productivity never equal potential productivity?
Rama09 [41]

The answer to the question is (C) time is lost to coordinating and organizing group members.

Actual group productivity is never quite equal to the expected productivity mainly because there are other processes involved in the team that the team members must do in order to reach the set common goal. Some of these processes usually include determining how to do the work and distributing the assignments to the right person, as well as setting the roles in the team.

4 0
3 years ago
Holiday Corp. has two divisions, Quail and Marlin Quail produces a widget that Marlin could use in its production Quail's variab
Neporo4naja [7]

Answer:

Cost savings when transfer are made = $0

Explanation:

In the question it was given that Quail is operating at capacity, then the  Minimum and Maximum transfer price would be market price = $15.80

Cost savings when transfer are made = No of unit Marlin purchase*(Maximum transfer price - Minimum transfer price)

Cost savings when transfer are made = 195,000 unit * ($15.80 - $15.80)

Cost savings when transfer are made = $3,081,000 - $3,081,000  

Cost savings when transfer are made = $0

5 0
3 years ago
A company is usually unable to take advantage of economies of scale during the __________ stage of the product life cycle.
AfilCa [17]

The Correct Answer Is C.

Growth

5 0
3 years ago
Read 2 more answers
When individuals use all available information about an economic variable to make a decision, expectations are?
monitta

when individuals use all available information about an economic variable to make a decision, expectations are   -rational

What is economic variable?

An economic variable is any measurement that helps to consider how an economy may function . for instance  population, poverty rate, inflation, and available resources.

What are the five economic variables?

There are 5 common economic variable that are considered :

output, gross domestic product ( GDP ), production, income, and expenditures.

What factors cause economic growth?

Basically , there are two main cause  of economic growth: growth in the size of the workforce and growth in the production activity (output per hour worked) of that workforce.

Learn more about economic variable:

brainly.com/question/14980411

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7 0
1 year ago
Joe's Hardware is adding a new product line that will require an investment of $ 1,512,000. Managers estimate that this investme
Sati [7]

Answer:

6.05 years

Explanation:

Payback period is the time in which a project returns back the initial investment in the form of net cash flow. For this purpose we use the net cash flows to calculate the payback.

Payback working is attached with this answer please find it.

7 0
3 years ago
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