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Natasha2012 [34]
3 years ago
14

Vessels Corporation's net income for the most recent year was $2,532,000. A total of 200,000 shares of common stock and 200,000

shares of preferred stock were outstanding throughout the year. Dividends on common stock were $3.80 per share and dividends on preferred stock were $1.25 per share. The earnings per share of common stock is closest to:A. $12.66. B. $8.86. C. $7.61. D. $11.41.
Business
1 answer:
Usimov [2.4K]3 years ago
6 0

Answer:

  • The earnings per share of common stock is closest to

D. $11.41.

Explanation:

To find the Price-Earning Ratio first, it's necessary to deduct from the Net Income the part corresponding to Preferred Stock,

which is , $2,532,000 - (200,000*1,25= $250,000) = $2,282,000

Then we calculate the Earning/Share Ratio : $2,282,000/200,000 = 11,41

Shares of Common stock outstanding    200.000     

Shares of Preferred stock outstanding    200.000*$1,25 = $250.000  

NET INCOME Available    $2,282,000  = $ 2,532,000  - $250,000

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Achieving high product quality lowers operating costs because of the effect of quality on:___________.
denpristay [2]

Answer:

Option C, corporate-level planning, is the right answer.

Explanation:

Option C, “corporate-level planning” is the correct answer because it is the corporate planning according to which every employee has to work. If the quality of planning is good then the firm will produce higher output with lower operating cost and if the planning is not good or suitable then the firm can increase the productivity but operating cost may go very high. Therefore, option C is right.

5 0
3 years ago
Common stock, par $12 per share, 49,000 shares outstanding. Preferred stock, 8 percent, par $17.5 per share, 7,710 shares outsta
Vlad [161]

Answer:

<h2>a. The Preferred stock is noncumulative.</h2>

Preferred stock

= 7,710 * 17.5 * 8%

= $‭10,794‬

Per share

= 10,794/7,710

= $1.40

Common Shareholders.

= 63,800 - 10,794

= $‭53,006‬

Per share

= ‭53,006‬/49,000

= $1.08

<h2>b. Preferred stock is cumulative. </h2>

This means that if preferred dividends are not paid in a year, they will be accrued and paid when they can.

Preferred stock

= 7,710 * 3 years (2017,2018,2019)

= $‭23,130‬

Per share = 23,130/7,710

= $3

Common stock

= 63,800 - 23,130

= $‭40,670‬

Per share

= 40,670/49,000

= $0.83

c. Why were the dividends per share of common stock less for the cumulative preferred stock than the noncumulative preferred stock?

b. The dividends in arrears on the preferred stock had to be fulfilled before dividends could be paid for the current year.

7 0
3 years ago
A modification to a product that changes the taste, texture, sound, smell, or appearance is a(n) _______.
Paha777 [63]

A modification to a product that changes the taste, texture, sound, smell, or appearance is a <u>style modification.</u>

<u></u>

Product modification is the process of improving already-existing items by making the required adjustments to their nature, size, packing, colour, and other attributes in order to better meet changing market demands. The goal of the product change is to retain current demand, draw in new customers, and effectively compete with rivals.

The company's earnings improve as a result of increased sales, which are aided by this. The product's look is altered as part of the style enhancement plan. Nevertheless, a product's quality never changes. Here, the product's packaging or its shape, colour, or other characteristics may be altered. The fashion business frequently employs this tactic.

To learn more about Product modification here,

brainly.com/question/13922806

#SPJ1

6 0
2 years ago
If an advertiser places a TV commercial using a​ lonely, lost puppy to sell its​ products, then that advertiser is said to be ut
ryzh [129]

Answer:

correct answer is Sadvertising

Explanation:

these type of advertiser is said to be Sadvertising because it is that type of advertising by which advertiser creator is use some certain type of strategy by which they play on peoples emotion and feeling of sadness.

nowadays emotional advertising become popular in the recent year,  

many firms work for creating strong emotional ties about their product

they think ad. with emotional reaction is viewed  more likely to be shared  

so here the correct answer is Sadvertising

5 0
3 years ago
Glaston Company manufactures a single product using a JIT inventory system. The production budget indicates that the number of u
dezoksy [38]

Answer:

$ 317,000

Explanation:

Octuber Production:  200,000    

Variable Overhead:      $      0.80 per unit    

Fixed Overhead:        $ 157,000    

     

<u>Factory Overhead Budget for Octobe</u>r:      

   

Octuber Production x Variable Overhead =    <em>200,000 x 0.80 =  160,000</em>      

           

Variable Overhead:  <em>$ 160,000</em>

+  

Fixed Overhead:     <em>  </em><em><u>   $ 157,000</u></em><em> </em>  

     

Total Overhead:<em> </em>      <em>   </em><em>$ 317,000</em><em>    ( $ 160,000 + $ 157,000 )  </em>

4 0
3 years ago
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