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Harman [31]
3 years ago
5

Ayayai Inc. presented the following data. Net income $2,680,000 Preferred stock: 48,000 shares outstanding, $100 par, 8% cumulat

ive, not convertible 4,800,000 Common stock: Shares outstanding 1/1 729,600 Issued for cash, 5/1 273,600 Acquired treasury stock for cash, 8/1 160,800 2-for-1 stock split, 10/1
Compute earnings per share. (Round answer to 2 decimal places, e.g. $2.55.)
Business
1 answer:
bezimeni [28]3 years ago
4 0

Answer:

$1.35 per share

Explanation:

Note: See the attached excel file for the calculation of the weighted shares outstanding.

The earnings per share can be computed as follows:

Weighted shares outstanding = 1,702,000 shares

Preferred stock dividend = 48,000 * $100 * 8% = $384,000

Net income = $2,680,000

Net income after preferred stock dividend = $2,680,000 - $384,000 = $2,296,000

Earnings per share = Net income after preferred stock dividend / Weighted shares outstanding = $2,296,000 / 1,702,000 = $1.35 per share

Download xlsx
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A 2-year maturity bond with face value of $1,000 makes annual coupon payments of $80 and is selling at face value. What will be
il63 [147K]

Solution:

Annual coupon payment of the bond is $80

At the beginning of the year, remaining maturity period is 2 years.

Price of the bond is equal to face value, i.e. the initial price of the bond is $1000.

New price of the bond = present value of the final coupon payment + present value of the maturity amount.

New price of the bond = $\frac{80}{1+r} +\frac{1000}{1+r}$

where, r is the yield to maturity at the end of the year.

Substitute 0.06 for r in the above equation,

Therefore new price of the bond is  = $\frac{80}{1+0.06} +\frac{1000}{1+0.06}$

                                                           = $\frac{1080}{1.06}$

                                                           = $ 1010.87

Calculating the rate of return of the bond as

$\text{rate of return}=\frac{\text{coupon+new price-old price}}{\text{initial price}}$

                     $=\frac{80+1018.87-1000}{1000}$

                     = 0.09887

Therefore, the rate of return on the bond is 9.887%

                                                                    ≈ 10 %

4 0
3 years ago
Isabella needs to create a mini-presentation with her group for an advertising campaign project in her marketing class. What typ
Eva8 [605]

Answer: Social learning

Explanation:

Isabella is involved in social learning with her learning group, in preparation for her mini-presentation on an advertisement campaign.

Social learning involves a form of learning done in groups where ideas are exchanged and learning is enhanced.

5 0
3 years ago
On March 25, 2021, Phillips Corporation purchased bonds of Atlas Corporation for $132 million and classified the securities as t
ValentinkaMS [17]

Answer:

An unrealized holding gain of $28 million in 2019.

Explanation:

At the financial year-end, the company have to reevaluate the investment to recognize the gain or loss.  

If the fair value is higher than actual investment, the company gain and vice versa it lost.

In this scenario, the fair value adjustment = the valuation on 31st December – purchased value = $150 million - $132 million = $28 million.

Because this step is just an approach to record new valuation of investment, then it’s consider unrealized.

In short, Phillips Corporation should first update the fair value adjustment of $28 million on December 31 2021

4 0
3 years ago
You will be given descriptions of people in various situations. Using this information, you are asked to place each individual i
levacccp [35]

Answer:

Option B                  

Explanation:

Structural unemployment refers to the type of unintentional unemployment induced by some kind of disparity between both the skills that economic employees may provide, and the qualifications that companies require of employees. Structural joblessness is sometimes caused by changes in technology which outdated the job qualifications of several employees.

Structural unemployment becomes difficult to distinguish with frictional unemployment scientifically, other than to suggest it lasts much longer for every particular individual. Easy demand-side intervention, like with frictional unemployment, won't work to quickly eradicate this form of joblessness.

6 0
3 years ago
K Inc. has provided the following data for the month of May: Inventories: Beginning Ending Work in process $ 17,000 $ 12,000 Fin
MAVERICK [17]

Answer:

Instructions are listed below

Explanation:

Giving the following information:

Inventories:

Beginning  Work in process $ 17,000

Ending WIP= $ 12,000

Beginning Finished goods $ 46,000

Ending Finished goods $ 50,000

Additional information:

Direct materials $ 57,000

Direct labor cost $ 87,000

Manufacturing overhead cost incurred $ 63,000

Manufacturing overhead cost applied $ 61,000

First, we need to calculate the cost of goods manufactured:

cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP

cost of goods manufactured= 17000 + 57000 + 87000 + 61000 - 12000= 210,000

COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory

COGS= 46000 + 210000 - 50000 = 206,000

Adjusted COGS= COGS + under-allocated overhead= 206000 + 2000= 208,000

7 0
3 years ago
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