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marta [7]
3 years ago
15

Nolte Co. has 4,800,000 shares of common stock outstanding on December 31, 2017. An additional 200,000 shares are issued on Apri

l 1, 2018, and 480,000 more on September 1. On October 1, Nolte issued $6,000,000 of 9% convertible bonds. Each $1,000 bond is convertible into 40 shares of common stock. No bonds have been converted. The number of shares to be used in computing basic earnings per share and diluted earnings per share on December 31, 2018 is1. 5,110,000 and 3,050,000.2. 5,880,000 and 5,320,000.3. 5,110,000 and 5,170,000.4. 5,110,000 and 5,110,000.
Business
1 answer:
Artist 52 [7]3 years ago
5 0

Answer:

3. 5,110,000 and 5,170,000

Explanation:

Number of shares to be used in computing basic earnings per share

= 4800000*12/12 + 200000*9/12 + 4800004/12

= 4800000 + 150000 + 160000

= 5,110,000

Number of shares to be used in computing dilute earnings per share

= 4800000*12/12 + 200000*9/12 + 4800004/12 + (6000000/1000)*40*3/12

= 4800000 + 150000 + 160000 + 60000

= 5,170,000

Therefore, The number of shares to be used in computing basic earnings per share and diluted earnings per share on December 31, 2018 is 5,110,000 and 5,170,000.

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Suppose you are the CEO of a start-up toy manufacturer. You know that if your business is to be successful, you have to create a
Sauron [17]

Answer:

a. Leslie, who is independent and self-confident. She doesn’t need people to tell her what to do.

b. Malcolm, who loves to play. His last boss says that Malcolm was the "chief kid" in his last office.

c. Frankie, who has been in the toy business for 10 years and who knows what he’s doing, but who always likes testing a new idea.

Explanation:

In this scenario the CEO of a start-up toy manufacturer wants to create at least 10 wildly different toys in the next three years.

He will primarily need people that are creative and are inclined to work with new ideas.

The wrong choice will be someone who follows the rules and is stable. Such a staff will not contribute new ideas that will move the company to make profits.

Leslie is confident and does not need to be told what to do, so she will take initiative to do new things.

Malcolm loves to play and this will boost creative ideas.

Frankie likes testing new ideas and will be comfortable working creatively.

6 0
3 years ago
Consider a mutual fund with $300 million in assets at the start of the year and 10 million shares outstanding. The fund invests
djyliett [7]

Answer: Start = $300 million

End = $318.59 million

Explanation:

NAV can be calculated by dividing the funds Assets net of Liabilities by the total number of outstanding shares.

At start of the year NAV is $300 million and NAV per share is therefore,

= 300 million/ 10 million

= $30 per share.

Ending NAV

During the year the fund made Investments and increased by a price of 7%

= 300 million (1 + 0.07)

= $321 million

We still have to subtract the 12b-1 fees that the fund charges though and that would result in,

= 321 million * (1 - 0.0075)

= 318.5925

= $318.59 million.

Dividing this by the total number of outstanding shares we have,

= 318.59 /10

= $31.86

$31.86 is the NAV per share at year end.

5 0
3 years ago
"Bronson Manufacturing is planning to issue $12 million in bonds. Based on a poll of potential investors, they have the highest
telo118 [61]

Answer:

C.eight-year bond with 5.5% annual interest rate

Explanation:

The computation of the total options under each option is as follows:

As we assume the par value be $1,000

For Option A

Total interest

= 9.5% × $1,000 × 3 years

= $285

For Option  B      

Total interest is

= 7.25% × $1,000 × 4 years

= $290

For Option C

Total interest is

= 5.5% × $1,000 × 8 years

= $440

For Option D

Total interest is

= 6% × $1,000 × 6 years

= $360

As we can see that the option C contains high value of the total interest. So the same is to be selected

6 0
2 years ago
cientists have developed a bacteria that they believe will lower the freezing point of agricultural products. This innovation co
alex41 [277]

Answer:

equilibrium price would fall and equilibrium quantity would increase

Explanation:

The discovery would reduce the amount of crops now lost to frost damage and increase the supply of crops e.g. potato.

As a result of the increase in supply, there would be an excess of supply over demand equilibrium price would fall and quantity would increase

Please check the attached image for a graph showing increase in supply

5 0
3 years ago
According to state agencies that monitor day care facilities, a typical sanitation requirement is that one toilet and handwashin
kompoz [17]
After the word every the answer would be "students"

Final answer,

According to state agencies that monitor day care facilities, a typical sanitation requirement is that one toilet and handwashing fixture be provided for <span>every student</span>


6 0
3 years ago
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