<span>above equilibrium.
~~~~~~~~~~~~~~~~~
(Make me brainliest if ya feel so)</span>
Darby's correct response is $0.045 per share.
Because we can calculate earnings per share by taking net income after taxes and then dividing it by the total number of common shares that are issued.
Income after taxes = <span>$2,000,000
shares = $44,000,000
Earnings per share = $2,000,000 / $44,000,000
=$2/$44
=$0.045</span>
Answer:
Darby Company
a. The amount of interest payable at December 31, 2016 is $100.
b. The amount of interest expense in 2016 is $100.
c. The amount of interest paid in 2016 is $0.
Explanation:
a) Data and Calculations:
Notes Payable to the bank = $3,000
Interest rate = 10%
Period of note = 1 year
Issue date = September 1
Interest on the note = $3,000 * 10% * 4/12 = $100
b) The interest payable in 2016 equals the interest expense for 2016. From the calculations, there is no payment for interest expense in 2016, that is why the interest payable equals the interest expense.
Answer:
b. CEO and other executive salaries
Explanation:
Product cost is defined as the costs that a company shares to the product it manufactures. For example cost of producing a car.
Product costs are made up of 3 cost elements: direct material cost, direct labour cost, and manufacturing overhead.
Direct material and direct labour contributes directly to production cost. While manufacturing overhead contributes indirectly to the product cost.
Examples of manufacturing overhead are rent and machine maintenance.
CEO and other executive salaries is not considered a product cost.
Answer:
12.42%
Explanation:
WACC is the average cost of capital of the firm based on the weightage of the debt and weightage of the equity multiplied to their respective costs.
According to WACC formula
WACC = ( Cost of equity x Weightage of equity ) + ( Cost of debt ( 1- t) x Weightage of debt ) + ( Cost of Preferred equity x Weightage of Preferred equity )
As per given data
Weights
Common Stock = 58%
Preferred Stock = 12%
Debt = 30%
Cost
Cost of Preferred Share = 11%
Cost of debt = 6%
Cost of Equity
Capital asset pricing model measure the expected return on an asset or investment. it is considered as the cost of common stock.
Formula for CAPM
Cost of Equity = Risk free rate + beta ( market return - risk free rate )
Cost of Equity = Rf + β ( Rm - Rf )
Cost of Equity = 3.2% + 3.55 ( 7% - 3.2% ) = 16.69%
Placing Values in the WACC formula
WACC = ( 16.69% x 58% ) + ( 6% ( 1- 0.21) x 30% ) + ( 11% x 12% )
WACC = 9.68% + 1.42% + 1.32 = 12.42%