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yan [13]
3 years ago
5

Lerner Co. had 200000 shares of common stock, 20000 shares of convertible preferred stock, and $600000 of 10% convertible bonds

outstanding during 2021. The preferred stock is convertible into 40000 shares of common stock. During 2021, Lerner paid dividends of $0.55 per share on the common stock and $1.80 per share on the preferred stock. Each $1,000 bond is convertible into 45 shares of common stock. The net income for 2021 was $360000 and the income tax rate was 30%. Basic earnings per share for 2021 is (rounded to the nearest penny)
Business
2 answers:
Finger [1]3 years ago
8 0

Answer:  

Basic EPS is $1.62

Explanation:

Basic earnings per share=(Net income-preferred dividends)/weighted average number of shares

net income is $360,000

preferred dividends=$1.80*20,000=$36000

Weighted average number of common stock is 200,000

Basic Earnings Per Share=($360,000-$36000)/200,000

=$1.62  

From the computation the basic EPS year 2021 is $1.62

This implies that each share had earnings of $1.62 during year from which $0.55 was paid out as dividends and the balance $1.07 was reinvested in the business for further growth

mestny [16]3 years ago
7 0

Answer:

Basic EPS=$1.08                

Explanation:

Basic EPS= Net income after tax-preferred shares' dividend/Weighted average of outstanding shares

Net income after tax=$360,000*.7=$252,000

Dividend to preference shareholders=20,000*1.8=$36,000

Weighted average shares outstanding=200,000

Basic EPS=($252,000-$36,000)/200,000

Basic EPS=$1.08

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The likelihood that a decision maker will ever receive a payoff precisely equal to the EMV when making any one decision is: a. L
djyliett [7]

Answer: low (near 0%)

Explanation:

The expected monetary value(EMV) simply refers to the amount of money that an economic agent can expect to make based on a particular decision that's made.

It should be noted that the likelihood that a decision maker will be able to receive a payoff that is exactly as thesame as the EMV when a decision is being made will be near to zero as it's very low that it'll happen.

4 0
3 years ago
What are the benifits of electric kitchens
Ksju [112]
<span>Induction offers the following benefits and performance advantages: Faster. Because energy is directly transferred within the pan metal, cooking on an electric induction range is extremely fast - even faster than gas.</span>
3 0
3 years ago
MONEY Deanna and Lise are playing games at the arcade. Deanna started with $15, and the machine she is playing costs $0.75 per g
goblinko [34]

Answer:

The answer is: after 8 games

Explanation:

You can solve this problem in two ways:

                                        Deanna                        Lise

Start with                            $15                            $13

After 1 game                      $14.25                       $12.50

After 2 games                   $13.50                       $12.00

After 3 games                   $12.75                        $11.50

After 4 games                   $12.00                        $11.00

After 5 games                   $11.25                         $10.50

After 6 games                   $10.50                        $10.00

After 7 games                    $9.75                         $9.50

After 8 games                   $9.00                        $9.00

Or you can solve this equation:

= (price of arcade D - price of arcade L) / (Deanna's money - Lise's money)

= ($0.75 - $0.50) / ($15 - $13) = $0.25 / $2 = 8

7 0
3 years ago
A lawn service company has the following production possibilities. With​ one, two,​ three, and four​ workers, the company can mo
Marianna [84]

Answer: Third

Explanation:

Diminishing returns to labor refers to the phenomenon where every additional worker leads to an increase in production at a decreasing rate.

Using the scenario described, when there was only one employee the company could mow 4 lawns a day. They added a 2nd worker and that figure went to 9 lawns a day which is an increase of FIVE.

When they added a 3rd worker, the figure again went up but only to 12 which is an increase of THREE only as opposed to the last increase of FIVE.

After the third worker therefore, there was an increase but at a smaller rate.

7 0
3 years ago
Data concerning a recent period’s activity in the Prep Department, the first processing department in a company that uses proces
lys-0071 [83]

Answer and Explanation:

a. The computation of cost of ending work in process inventory for materials, conversion, and in total is shown below:-

For material = 2,080 × $15.66

= $32,572.80

For conversion = 930 × $6.23

= $5,793.90

For total cost of work in process inventory = $32,572.80 + $5,793.90

= $38,366.70

b. The computation of cost of the units completed and transferred out for materials, conversion, and in total is shown below:-

For material = 21,700 × $15.66

= $339,822

For Conversion = 21,700 × $6.23

= $135,191

For total cost of completed and transferred units = $339,822 + $135,191

= $475,013

3 0
3 years ago
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