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
patriot [66]
3 years ago
8

Culver Corporation earned $262,000 during a period when it had an average of 100,000 shares of common stock outstanding. The com

mon stock sold at an average market price of $15 per share during the period. Also outstanding were 13,500 warrants that could be exercised to purchase one share of common stock for $10 for each warrant exercised.(a) Are the warrants dilutive?
(b) Compute basic earnings per share. (Round answer to 2 decimal places, e.g. $2.55.)
(c) Compute diluted earnings per share.
Business
1 answer:
Westkost [7]3 years ago
5 0

Answer:

a) The warrant are Dilutive

b) Basic EPS $2.62

c) Diluteed EPS = $2.31

Explanation:

a) The warrants are dilute because the cost of exercising the rights is lover than the market price

b) Basic Eps = Total Earning/Share Outstanding = $262,000/100,000 = $2.62

c) Diluted Eps = Earnings/(Shares outstanding+potential shares)

= $262,000/(100,000+13,500) = $2.31    

You might be interested in
Now that you have identified Verdure Wellness Club's target market, you need to turn your attention to the buyer decision proces
tigry1 [53]

Answer: The answer is True.

Explanation: The Buyer Decision process has 5 phases and they are as follows:

1. Need recognition phase, where the buyer recognizes that they have a need to fill.

2. Information search phase, where the buyer seeks information on the best options to meet their needs.

3. Alternative evaluation phase, where a buyer evaluates the alternative enterprises that can best meet their needs.

4. The purchasing phase, where a buyer makes the decision to purchase the product or service of the best alternative, based on the evaluation in phase 3.

5. Post-purchase behavior phase where the buyer will either be happy with the product or service or will regret buying the product or service. Often, the buyer will advice other people to either buy or avoid buying that product or service, based on their experience.

4 0
3 years ago
Sherry owns a car business. She just received a shipment of Volkswagen SUVs. She paid $60,000 for each vehicle and wants to make
densk [106]

The selling price of the price that is offered to the buyer of the goods. The selling price of the car should be $<u><em>75,000</em></u>.

<h3>What is the selling price?</h3>

The selling price is the ultimate value of the goods the seller is willing to offer to the buyer at the time of sale. It is determined by adding up the profit margin to the actual cost of the goods.

The computation of the selling price of the car:

Given,

  • Cost price =$60,000
  • Margin =25%

\begin{aligned}\text{Selling Price}&=\text{Cost Price}+\text{Margin}\\&=\$60,000+(\$60,000\times25\%)\\&=\$60,000+\$15,000\\&=\$75,000\end{aligned}

Therefore, if Sherry wants to make 25% on the sale of each car then the car must be sold at $75,000 each.

Learn more about selling price, here:

brainly.com/question/3798799

5 0
2 years ago
What would you do if you were in the position of the business executives described in the “gift giving and the african elder” ca
lubasha [3.4K]
The business executives were further complicating a situation that was even that complicated to begin with. Tribal elder or not, the business executives were informed that the man was a tribal elder, thus following through with the gift giving customs. This type of act walks hand and hand with the philosophy behind sending something a card. This act should be seen as an act of respect and continued growth, nothing more. This gift should not have been foreseen as an unethical compromise of any <span>kind, but rather a token of appreciation.

FOUND BY: </span>https://www.coursehero.com/file/7010504/Session-8-Discussion-Copy/
3 0
3 years ago
Klose Outfitters Inc. believes that its optimal capital structure consists of 60 percent common equity and 40 percent debt, and
Eduardwww [97]

Answer:

WACC 10.38305%

Explanation:

<em><u>First we solve for the source of financing:</u></em>

Expansion: 5,900,000

60% Equity: 3,540,000

Retained Earnins 2,000,000

then 1,540,000 will be common equity

40% debt: 2,360,000 It can raise up to 3,000,000 so it will be sufficient

D  2,360

E  1,540

RE 2000

V  5,900

Now we can solve for Weighted average cost of capital

WACC = K_e(\frac{E}{E+RE+D}) + K_{re}(\frac{P}{E+RE+D}) + K_d(1-t)(\frac{D}{E+RE+D})

Ke 0.15

Equity weight 0.261016949 (1,540,000 / 5,900,000)

Kre 0.12

RE Weight  0,338983  (2,000,000 / 5,900,000)

Kd 0.1

Debt Weight 0.4 ( 2,360,000 / 5,900,000)

t 0.4

WACC = 0.15(0.261016949152542) + 0.12(0.338983050847458) + 0.1(1-0.4)(0.4)

WACC 10.38305%

5 0
3 years ago
If someone give gift to his wife of 255000 how much is taxable
padilas [110]
I do believe that gifts to a spouse are exempt from any gift tax. So $0 is taxable.
8 0
3 years ago
Read 2 more answers
Other questions:
  • Overcharging Medicare for care and services provided to patients is an example of Behavior
    8·1 answer
  • Ann is in the middle of completing her first 1040EZ tax form. She has some questions about an instruction on the form. What shou
    15·1 answer
  • Which of the following correctly describes an example of a secondary competitor?
    9·2 answers
  • During the ________ stage of the product life cycle sales reach a peak, profits are declining, and the number of competitors sta
    13·1 answer
  • All of the following are good reasons why employers often consider hiring veterans from the armed services EXCEPT...
    8·1 answer
  • Although a marketing information system primarily serves the​ company's marketing and other​ managers, it might also provide inf
    14·1 answer
  • Jake’s Market recorded the following events involving a recent purchase of merchandise: Received goods for $60000, terms 2/10, n
    5·2 answers
  • Tall Guys Clothing has a 45-day collection period. Sales for the next calendar year are estimated at $2,100, $1,600, $2,500 and
    15·1 answer
  • The demand for bus rides is a downward-sloping straight line demand curve. The price elasticity of demand for bus rides ________
    14·1 answer
  • Juno Co. purchased a machine for $10,000 and estimates it will use the machine for three years with a $2,000 salvage value. It e
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!