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Mama L [17]
3 years ago
5

Mayan Company had net income of $132,000. The weighted-average common shares outstanding were 80,000. The company has no preferr

ed stock. The company sold 3,000 shares before the end of the year. There were no other stock transactions. The company's earnings per share is:
Business
1 answer:
katrin [286]3 years ago
4 0

Answer:

EPS = $1.71 per unit

Explanation:

<em>Earnings per share is the total earnings attributable to ordinary shareholders divided by the number of units of common stock .</em>

<em>It represents profit per unit of stock unit  held by common stock holder investor. The higher the more profitable and the  better.</em>

Earnings per share = Earnings attributable to ordinary shareholders / units of common stock

Earnings attributable to ordinary shareholders= Net income after tax - preference dividend  

Net income = 132,000

Preference dividend = Nil

<em>Number of shares at the end of the year = Number of shares at the beginning - number of shares at the end</em>

Number of shares at the end of the year = 80,000 - 3000 = 77,000  units

Earnings = = 132,000 - 0 = 132,000

Earnings per shares(EPS) = $132,000 / 77,000 units = $1.71 per unit

EPS = $1.71 per unit

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b. If the indirect exchange rate increases, the dollar also strengthens relative to the other currency.

Explanation:

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AJ Manufacturing Company incurred $54,000 of fixed product cost and $43,200 of variable product cost during its first year of op
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Answer:

Explanation:

The preparation of the income statement is presented below using the generally accepted accounting Principles (GAAP) :

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Less: Selling and administrative cost ($31,000)    ($17,200 + $13,800)

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Marpor Industries has no debt and expects to generate free cash flows of $16 million each year. Marpor believes that if it perma
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Answer and Explanation:

The computation is shown below:

a.  Marpor's value without leverage is

But before that first we have to calculate the required rate of return which is

The Required rate of return = Risk Free rate of return + Beta × market risk premium

= 5% + 1.1 × (15% - 5%)

= 16%

Now without leverage is

= Free cash flows generates ÷ required rate of return

= $16,000,000 ÷ 16%

= $100,000,000

b. And, with the new leverage is

= (Free cash flows with debt ÷ required rate of return) + (Tax rate × increase of debt)

= ($15,000,000 ÷ 0.16) + (0.35 × $40,000,000)

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3 years ago
Michael receives a monthly salary of $2500 plus a commission of 2% of total orders written. If his orders for the month were $34
Bumek [7]

Answer:

$3,180

Explanation:

Monthly salary would be the base salary = $2500

Since he would earn 2% of all orders, calculate the dollar value of the commission when total orders amount to $34000;

Commission = 2% *34000 = $680

His total pay would be calculated by adding the base salary to the commission amount;

Total pay = base salary + commission

Total pay = $2500 + $680

Total pay = $3,180

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