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Serjik [45]
3 years ago
12

The Presley Corporation is about to go public. It currently has aftertax earnings of $6,500,000, and 3,000,000 shares are owned

by the present stockholders (the Presley family). The new public issue will represent 700,000 new shares. The new shares will be priced to the public at $20 per share, with a 5 percent spread on the offering price. There will also be $300,000 in out-of-pocket costs to the corporation. a. Compute the net proceeds to the Presley Corporation. (Do not round intermediate calculations and round your answer to the nearest whole dollar.) Net proceeds b. Compute the earnings per share immediately before the stock issue. (Do not round intermediate calculations and round your answer to 2 decimal places.) Earnings per share c. Compute the earnings per share immediately after the stock issue. (Do not round intermediate calculations and round your answer to 2 decimal places.) Earnings per share
Business
1 answer:
m_a_m_a [10]3 years ago
8 0

Answer:A. Net proceed $13,700,000

($20*700,000)-$300,000

B. Earnings per share $2.17

$6500,000/3,000,000 shared

C. Earnings per share $1.76

$6,500,000/3,700,000 shares

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Pell Company acquires 80% of Demers Company for $500,000 on January 1, 2010. Demers reported common stock of $300,000 and retain
natulia [17]

Answer:

$74,400

Explanation:

Pell Company

Pell's income from Demers for the year ended December 31, 2010

Controlling Interest Share of Net Income for 2010- Excess Fair value Annual Amortization

Controlling Interest Share of Net Income for 2010= ($100,000 × .80) $80,000

Less Excess Fair Value Annual Amortization =($7,000 × .80) $5,600

Pell Income= $74,400

8 0
2 years ago
Which of the following users of accounting information are interested in the quality of a company assets?
kaheart [24]

Answer:

D

Explanation:

Well public is all about quality

7 0
2 years ago
PLEASE HELP ME
Gnom [1K]

Answer:

C

I hope it helps, sry if it doesn't!

I don't rly know how to explain it tho

Explanation:

6 0
2 years ago
At the beginning of the year, Monroe Company estimates annual overhead costs to be $800,000 and that 200,000 machine hours will
lora16 [44]

Answer:

$600,000

Explanation:

For computing the overhead applied first we have to find out the predetermined overhead rate

Predetermined overhead rate = (Total estimated manufacturing overhead) ÷ (estimated machine hours)

= $800,000 ÷ 200,000 hours

= $4

Now the overhead applied is

= Actual direct labor-hours × predetermined overhead rate

= 150,000 hours × $4

= $600,000

3 0
2 years ago
when an auditor of financial statements has substantial doubt about an entity's ability to continue as a going concern, the audi
tangare [24]

If information about an entity's ability to continue as a going concern is not disclosed in the financial statements, an auditor of financial statements is likely to express an adverse opinion.

<h3>Define a qualified or adverse opinion.</h3>

A remark made in an auditor's report that is attached to a company's audited financial statements is known as a qualified opinion. According to an auditor's judgment, a company's financial information may have been incomplete or there may have been a significant problem with how generally accepted accounting standards (GAAP) were applied, but the problem was not widespread.

With one or more exceptions, the financials often reflect the company's success and position. The financial statements are inaccurate or do not adhere to widely accepted accounting rules, in our opinion (GAAP).

To know more about qualified opinion, visit:

brainly.com/question/14310924

#SPJ1

7 0
10 months ago
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