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Fofino [41]
2 years ago
6

he Alford Group had 220,000 shares of common stock outstanding at January 1, 2018. The following activities affected common shar

es during the year. There are no potential common shares outstanding. 2018 Feb. 28 Purchased 24,000 shares of treasury stock. Oct. 31 Sold the treasury shares purchased on February 28. Nov. 30 Issued 96,000 new shares. Dec. 31 Net income for 2018 is $1,590,000. 2019 Jan. 15 Declared and issued a 2-for-1 stock split. Dec. 31 Net income for 2019 is $1,590,000.
Business
1 answer:
nalin [4]2 years ago
6 0

Answer:

Consider the following calculation

Explanation:

1. Determine the 2018 EPS.

EPS = Net Income / Weighted Average number of shares

Numerator

Net Income = $15,90

Denominator

Weighted Average number of shares = 2,20 – (24x10/12) + (24x2/12) + (96x1/12)

= 2,52 Shares

EPS 2018 = $15,90 / 2,52 Shares

= $6.31 per share

2. Determine the 2019 EPS.

Numerator

Net Income = $15,90

Denominator

Weighted Average number of shares

=[ 2,20 – 24 + 24 + 96 ] x 2 Stock Split

= 6,32 Shares

EPS 2019 = $15,90 / 6,32 Shares

= $2.52 per share

3. At what amount will the 2018 EPS be presented in the 2019 comparative financial statements?

Numerator

Net Income = $15,90

Denominator

Weighted Average number of shares

= 2,520 x 2 Stock split

= 5,04 Shares

EPS = $15,90 / 5,04

= $3.15 per share

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An investor purchases a stock for $39 and a put for $0.55 with a strike price of $32. The investor sells a call for $0.55 with a
Archy [21]

Answer:

The maximum profit and loss for this position is $3 and -$7 respectively

Explanation:

The computations are shown below:

For maximum profit:

= Strike price at the sale - stock price + put price - call price

= $42 - $39 + $0.55 - $0.55

= $3

For maximum loss:

= Strike price at purchase - stock price + put price - call price

= $32 - $39 + $0.55 - $0.55

= -$7

Simply we take the difference between the strike price ,and the stock price and after that the put and call price are adjusted

3 0
3 years ago
Requiring industries to recycle 25% of plastics in their manufacturing process is an example of:
vodka [1.7K]
<span>By requiring industries to recycle 25% of plastics in their manufacturing process is one way to prevent pollution and save our environment. We all know that most plastics are not biodegradable, it means that they cannot be decomposed naturally no matter what you do to it. Burning plastic would even harm our environment. In that being said, recycling them would be a better choice. By reusing plastics, the number of it that would just contribute to the world's pollution would be reduced.</span>
4 0
3 years ago
An increase in consumer income increases the demand for automobiles. As a result of the adjustment to a new equilibrium, there i
Bumek [7]

Answer:

B. upward movement along the supply curve.

Explanation:

An increase in the income of a consumer income would have a significant impact on the quantity of goods demanded by him or her such as increasing the demand for automobiles. As a result of the adjustment to a new equilibrium, there is an upward movement along the supply curve

7 0
3 years ago
Consider the following work breakdown structure:What is the probability that this project will be completed within 210 days AND
ella [17]

Answer: 0.8186  

Explanation:

Given that;

activity To    Tm Tp     Te (V)^0.5            v

A         38    50 62    50 4                   16

B         90    99 108    99 3                    9

C         70    80 90    80 3.333333    11.11111

D         19    25 31    25 2                    4

E         91    100 115    101 4                   16

F         62    65 68    65 1                    1

Expected duration Te = (4 × Tm + To + Tp ) / 6

Variance = ( Tp-To/6]²

variance of the critical path = 9+16 =25

SD of the critical path = ( var)^0.5 = 5

probability that the project will be completed within  210 days is given by

z = (210-200) / 5 = 2

which gives probability of 0.97725

Probability that the project will be completed within 195 days

z = (195-200) / 5 = -1

which corresponds to probability of 0.1586

Now required probability that project completes within 210 but before 195 days is given by

0.97725 - 0.1586 = 0.8186  

4 0
3 years ago
Potomac Industries is a manufacturer of high-definition televisions. The industry has gone through a period of rapid growth and
scZoUnD [109]

Answer:

Option B. Implement process innovations that lower per unit costs

Explanation:

The reason is that the controlling cost will give cost advantage over the competitors and will let the company to compete at a better platform making greater number of sales and driving maximum sales which will also give economies of scale. Economies of scale is the benefits of additional costs savings that comes with the additional manufacturing of the product which means that greater the manufacturing the greater would be the savings of costs. So economies of scales give competitive advantage over the rivals so the correct option is B.

8 0
3 years ago
Read 2 more answers
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