Answer:
Net income available to common stockholders is $1,075,000
Explanation:
Net Income $1,250,000
To Preferred Shareholders <u>$175,000 </u>
Net income available to <u>$1,075,000</u>
common stockholders
Basic earnings per share = Net income available to common stockholders / weighted average shares of common stock
Basic earnings per share = $1,075,000 / 380,000
Basic earnings per share = $2.8290 per share.
Answer:
The current stock price of Jersey Kids Corp in 2021 is expected to be $39.02.
Explanation:
The current stock price of Jersey Kids Corp in 2021 can be calculated using the formula for the dividend discount model as follows:
P2021 = D2022 / (r - g) ............................ (1)
Where,
P2021 = current stock price in 2021 = ?
D2020 = Annual dividends per share paid in 2020 = $3.00
D2021 = Annual dividends per share paid in 2021 = D2020 * (1 + g) = $3 * (1 + 0.02) = $3.06
D2022 = Annual dividends per share paid in 2022 = D2021 * (1 + g) = $3.06 * (1 + 0.02) = $3.1212
r = required return = 10%. or 0.10
g = growth rate = 2% = 0.02
Substituting the values into equation (2), we have:
P2021 = $3.1212 / (0.10 - 0.02)
P2021 = $3.1212 / 0.08
P2021 = $39.02
Therefore, the current stock price of Jersey Kids Corp in 2021 is expected to be $39.02.
Answer:
caring value of bond liability is $48000
interest expense = $3547
annual coupon = 3500
amount of bond discount amortization is $47
Explanation:
given data
face value = $50,000
bonds issue = 96
discount = 4%
time = 20 year
interest = 7%
effective rate of interest = 7.389%
to find out
compound annual coupon
solution
we have given face value and discount 4 %
so issue price will be
issue price = 96% of face value
issue value = 96% × 50000 = $48000
and
interest expense is here by effective interest rate is
interest expense = 7.389% of $48000
interest expense = $3547
and
annual coupon is here
annual coupon is 7% of face value
annual coupon = 7% × 50000
annual coupon = 3500
and
amount of bond discount amortization is 3547 - 3500 = $47
The American Opportunity Credit is a credit that is given to any eligible student wherein their expenses for the first four years in education are being paid. Based on the given statements above, the one that is NOT considered true about this kind of credit is the last option.
