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Charra [1.4K]
3 years ago
11

Kevin’s Bacon Company Inc. has earnings of $7 million with 2,500,000 shares outstanding before a public distribution. Eight hund

red thousand shares will be included in the sale, of which 500,000 are new corporate shares, and 300,000 are shares currently owned by Ann Fry, the founder and CEO. The 300,000 shares that Ann is selling are referred to as a secondary offering and all proceeds will go to her. The net price from the offering will be $18.50 and the corporate proceeds are expected to produce $1.4 million in corporate earnings. a. What were the corporation’s earnings per share before the offering? (Do not round intermediate calculations and round your answer to 2 decimal places.)
Business
1 answer:
seraphim [82]3 years ago
8 0

Answer:

$2.80

Explanation:

The computation of the corporation’s earnings per share before the offering is shown below:-

Corporation’s earnings per share before the offering = Earnings ÷ Outstanding shares

= $7,000,000 ÷ 500,000

= $2.80

Therefore for computing the corporation’s earnings per share before the offering we simply applied the above formula.

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For an auto insurance company, the average cost of collision claims is $500 per year for careful drivers and $3000 per year for
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Answer:

option (c) $875 per year

Explanation:

Given;

Average cost of collision claims for careful drivers = $500 per year

Average cost of collision claims for for poor drivers = $3000 per year

Poor drivers known by the company = 15%

thus,

Careful drivers = (100% - 15%) = 85%

Therefore,

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= 0.15 × $3000 + 0.85 × $500

= $450 + $425

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Hence, the correct answer is option (c) $875 per year

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2 years ago
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zysi [14]

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3 years ago
Swan Song is a spa that caters to the needs of a small percentage of highly health-conscious consumers. It offers state-of-the-a
Andreyy89

Answer:

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Explanation:

The focused differentiation strategy refers to position 5 of the strategic clock. In this strategic position, companies offer products / services with a high added value perceived by customers in exchange for high acquisition prices.

Companies that offer Premium products / services as well as companies dedicated to the luxury sector have the strategy of focused differentiation as the axis of the company's operation.

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6 0
3 years ago
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Car insurance that pays for your injuries when you are in an accident in your car is ? insurance?
zmey [24]

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6 0
3 years ago
Risks of global trade include all of the following EXCEPT ________.
mihalych1998 [28]

Answer:

Option e: Increased opportunities for growth

Explanation:

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Increased opportunities for growth is not an effect of risk in global trade.

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2 years ago
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