1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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

You might be interested in
Definition of collateral​
Romashka [77]
Collateral- Something pledged as security for repayment of a loan, to be forfeited in the event of a default.
8 0
3 years ago
Read 2 more answers
Do you prefer to work alone or as a member of a team? Explain.
deff fn [24]

Answer:

If you're an introvert, you can say that you generally enjoy working alone, but explain that you can also work well with others, too. For example, “I really enjoy collaborating with a team and brainstorming ideas, but that doesn't mean I can't work independently to get things done.

Acknowledging working as a team and independently shows you are a well-rounded individual who likes all work environments. However, employers won't accept you directly answering “both”, so you need to pick one depending on the type of role you're going for – but remember to address the other side too.

5 0
2 years ago
Read 2 more answers
Madrid Company plans to issue 9% bonds with a par value of $5,300,000. The company sells $4,770,000 of the bonds at par on Janua
ASHA 777 [7]

Answer and Explanation:

The journal entry are as follows

1. Interest expense $214,650

       To Cash $214,650

(Being the first interest payment is recorded)

The computation is shown below

= $4,770,000 × 9%  × 6 months ÷ 12 months

= $214,650

For recording this we debited the interest expense as it increased the expenses while on the other hand the cash is paid which reduced the cash balance so it is credited

2. Cash $530,000

      To Bond payable $530,000

(Being the cash sale of bond is recorded)

For recording this we debited the cash as cash is received that increased the cash balance and at the same time we credited the bond payable

5 0
3 years ago
A fee that covers the cost of ensuring that the home belongs to the seller, and may also include title insurance, which protects
Aleks [24]

C. Title Fee

The company will perform a title search to ensure that there is a clear path of ownership so there can be a legal sale contract.

8 0
3 years ago
Read 2 more answers
Activity-Based Costing for a Service Business Sterling Hotel uses activity-based costing to determine the cost of servicing cust
Sunny_sXe [5.5K]

Answer:

Total cost= $40.3

Explanation:

Giving the following information:

The activity rates associated with each activity pool are:

$8.30 per guest check-in

$20.00 per room cleaning

$4.00 per served meal (not including food).

Tara Washington visited the hotel for a 3-night stay. Washington had 6 meals in the hotel during her visit.

Total cost= 8.30*1 + 20*1 + 4*3= $40.3

8 0
3 years ago
Other questions:
  • Complete the table by calculating the surplus or deficit both in absolute (dollar) terms and as a percentage of gdp. if necessar
    5·2 answers
  • You are a loan officer at a bank. An applicant comes to
    10·1 answer
  • Select all the correct answers.
    5·1 answer
  • Danny is working to provide food, clothing, and shelter for his family. This is an example of which function of a family?
    15·1 answer
  • Hayes Bakery has sales of $30,600, costs of $15,350, an addition to retained earnings of $4,221, dividends paid of $469, interes
    8·1 answer
  • A service management tool has the ability to store templates for common incidents that define the steps to be taken to resolve t
    12·1 answer
  • ABC Company is structured so that one department services the military and another department services the medical community. Wh
    6·1 answer
  • Most of the procedural, or due process, rights given to criminal suspects or defendants in the United States are found in
    13·2 answers
  • Suppose the manager of an ice cream store is trying to forecast the pounds of ice cream that they will sell based on what they h
    5·1 answer
  • ______ effect happens when the place a product was manufactured influences how consumers perceive the product.
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!