1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Harlamova29_29 [7]
4 years ago
9

ints) During 2018, Falwell Inc. had 500,000 shares of common stock and 50,000 shares of 6% cumulative preferred stock outstandin

g. The preferred stock has a par value of $100 per share. Falwell did not declare or pay any dividends during 2018.Falwell's net income for the year ended December 31, 2018, was $2.5 million. The income tax rate is 40%. Falwell granted 10,000 stock options to its executives on January 1 of this year. Each option gives its holder the right to buy 20 shares of common stock at an exercise price of $29 per share. The options vest after one year. The market price of the common stock averaged $30 per share during 2018.What is Falwell's basic earnings per share for 2018, rounded to the nearest c
Business
1 answer:
Butoxors [25]4 years ago
8 0

Answer: $4.34

Explanation:

The net income for diluted earnings per share will be calculated as:

Net income: $2,500,000

Less: preferred dividend: $300,000

= $2,200,000

To calculate the number of shares goes thus:

Total shares of stock options = 10,000 × 20 = 200,000 shares

Proceeds = 200,000 × $29

= $580,000

Shares of treasury stock will be:

= $580,000/$30

= 193,333 shares

Net shares added will be:

= 200000 - 193333

= 6667

Tge total shares for the diluted earnings per share will now be:

= 500,000 + 6667

= 506,667

The diluted earnings per share:

= $2,200,000/506667

= $4.34

You might be interested in
List the four ways to become a business owner
777dan777 [17]
1. Start your own business2. Take over a family-owned business3. Buy a franchise4. Buy an existing operating business.
8 0
4 years ago
Read 2 more answers
In this type of budget, the master budget is based on a single prediction for sales volume, and the budgeted amount for each cos
SOVA2 [1]

Answer:

Fixed budget.

Explanation:

A fixed budget can be regarded as financial plan which is not been modified for any variations that could come up in actual activity. In most times some companies may have experience of substantial variations as regards their expected activity levels within the encompassed period of budget as well as the amounts in that budget. The budget cost allowances in a fixed budget for each cost item cannot be changed as regards the variable items. It should be noted that in Fixed budget the master budget is based on a single prediction for sales volume, and the budgeted amount for each cost essentially assumes that a specific amount of sales will occur.

3 0
3 years ago
Select the correct answer. Which of the following can be classified as secondary data? A. focus groups B. telephone surveys C. g
BARSIC [14]
I would pick D. Because the customer would be giving feedback from their own personal experience from the product they bought.
6 0
3 years ago
Doogan Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Direct m
tia_tia [17]

Answer:

Direct labor rate variance= $1,666 favorable

Explanation:

Giving the following information:

The company produced 5,200 units in January using 2,380 direct labor-hours.

The actual direct labor rate was $19.30 per hour

<u>To calculate the direct labor rate variance, we need to use the following formula:</u>

<u></u>

Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity

Direct labor rate variance= (20 - 19.3)*2,380

Direct labor rate variance= $1,666 favorable

4 0
3 years ago
Which of the following is an incorrect way to avoid struck-by rolling hazards?
finlep [7]

The answer is: A.Position a worker to signal you when operating a vehicle in reverse gear without audible forward alarm

When operating vehicle in reverse gear, the operator cannot always see whether the worker who gives the signal able to see the moving vehicles or not.

Which is why an audible sound for moving vehicles is needed so the other workers could notify the location of your vehicles and avoid themselves from being crushed.

3 0
4 years ago
Read 2 more answers
Other questions:
  • You are the manager of a theater. At present the theater charges the same admisssion price of $8 to all customers, regardless of
    6·1 answer
  • Registration in Ms. McNick's classes reaches maximum enrollment quickly. Students register immediately online just to insure the
    13·1 answer
  • Oliver Industries is evaluating the manufacturing process for one of their products. Oliver has determined that the process has
    11·1 answer
  • Accounting information systems:
    5·1 answer
  • Vincente is conducting research to test the hypothesis that the social contagion effect is weak in adults. His finding that adul
    15·1 answer
  • Most of the managers and team members of Wilbesht, a pharmaceutical company, are under the age of 40. The structure of the compa
    14·1 answer
  • You have been using a variety of nested IF functions to calculate costs in your spreadsheet when a colleague stops by and commen
    14·1 answer
  • Olympus Climbers Company has the following inventory data:
    10·1 answer
  • In terms of general value propositions, the Hawks are providing greater value with a ____________________ strategy.
    5·1 answer
  • A division reports the following figures: Sales = $14,000; Net income = $2,800; Average assets = $28,000. The division's profit
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!