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larisa [96]
3 years ago
13

During the current year, East Corporation had 4 million shares of common stock outstanding. 2,200, 4% convertible bonds, each wi

th $1,000 face value, were issued at face amount at the beginning of the year. East reported income before tax of $11 million and net income of $6.6 million for the year. Each bond is convertible into 10 shares of common stock. What is diluted EPS?
A. $0.90.
B. $0.95.
C. $0.89.
D. $0.94.
Business
1 answer:
ASHA 777 [7]3 years ago
8 0

Answer:

$1.64

Explanation:

Diluted earning per share is calculated by adjusting all the convertible share options or securities in the outstanding share.

According to given data

Net Income for the year =  $6,600,000

Outstanding shares =  4,000,000 shares

Number of shares to be converted = 2,200 x 10 share = 22,000

Outstanding shares after adjusting options = 4,00,000 + 22,000 = 4,022,000 shares

Diluted EPS = Net Income / Outstanding share after adjustment

Diluted EPS = $6,600,000 / 4,022,000 = $1.64

Note

Options are inconsistent with data given.

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The employees at NeiFra Infosystems Inc., a website design company, have been struggling to provide quality services to clients.
tekilochka [14]

Answer:

C. Using software that helps with tracking progress.

Explanation:

As the employees at NeiFra Infosystems Inc. have been struggling to provide quality services to clients. An investigation reveals that employees feel dissatisfied and fatigued due to the challenging nature of their jobs. Ellen, the HR manager, suggests simplifying jobs in order to reduce errors and increase accuracy. Using software that helps with tracking progress can simplify the mental demands of employees' jobs. With the help of software, they can not only easily make the patterns but also can easily identify the main problems in a more effective and efficient way. Software can help NeiFra Infosystems Inc. in getting knowledge about the reasons of the employee's dissatisfaction in a more quick and fast way, which if they do it manually can take lot of time and unnecessary efforts.

8 0
3 years ago
The management of an SBU is addressing the issue of whether through investment and a new
White raven [17]

Using a market development investment-driven strategy, the SBU (Strategic Business Unit) that can be transformed into a star is a question mark SBU.

The characteristics of a question mark SBU are:

  • high growth prospects
  • low market share
  • consumes a lot of cash
  • generates little returns
  • loses money

For the transformation of a question mark SBU, more investments and new strategies have to be brought in.

Thus, a question mark SBU has the highest potential to turn into a star if the market growth is high.

Read more about the BCG growth share matrix at brainly.com

7 0
2 years ago
On October 28, 2013, Mercedes Company committed to a plan to sell a division that qualified as a component of the entity accordi
Marysya12 [62]

Answer: $2,500,000

Explanation:

Discontinued operations is when a particular division in a company shutdown.

With regards to the above question, the before-tax amount that Mercedes should report as loss on discontinued operations in its 2013 income statement will be:

= $2,000,000 + ($3,000,000 - $2,500,000)

= $2,000,000 + $500,000

= $2,500,000

4 0
3 years ago
​Calligraph Publishing Company has created a system for storing every piece of data about every one of its books, both those tha
Tanzania [10]

Answer:

The answer is (A) knowledge management system.

Explanation:

A knowledge management system is a type of system used to create, share, use, and manage the knowledge and information of an organization. It is used to manage documentation of information in a company, which can include information about products they manufacture, how to execute services that the company provides, how the company operates, and so on.  

6 0
3 years ago
Some sellers of used cars provide warranties to buyers, with the aim of reassuring buyers that the car is of good quality. These
NISA [10]

Answer:  

Adverse selection

                         

Explanation:

Adverse selection typically refers to such a circumstance when sellers possess knowledge that customers just don't have, about some type of quality of products — in other terms, it is a method of leveraging asymmetric data.

In other words, Asymmetric information, often referred to as intelligence loss, occurs when any group has better knowledge of data than any of the other group.

Thus, we can conclude that the warranty is given to ensure customers that nothing has been hidden from them.

5 0
3 years ago
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