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lozanna [386]
3 years ago
5

At December 31, 2018 and 2019, Frist Company had outstanding 50 million common shares and 4 million shares of 10%, $10 par cumul

ative preferred stock. Net income for 2019 was $20 million. No dividends were declared in 2018 or 2019. EPS for 2019 was:
Business
1 answer:
klemol [59]3 years ago
8 0

Answer:

The EPS for 2019 was $0.32

Explanation:

A                           Net Income                                 $20,000,000

B            No. of preferred Stock shares                  $4,000,000

C                     Par value per share                          $10.00

D = C*10%     Dividend per share (10%)                   $1.00

E = B*D           Preferred Dividend                          $4,000,000.00

F = A - E     Net Income(Common Stockholders)    $16,000,000.00

G          Number of share(common stock)outstanding    50,000,000

H = F - G       Earning per share for 2019                            $0.32

Therefore,The EPS for 2019 was $0.32

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8 0
2 years ago
When choosing between two alternatives, such as replacing or not replacing the machine, do not include _______ costs in the anal
zysi [14]

Answer:

Head Office Cost Allocations

Explanation:

Usually Projects have Head Office costs that are allocated to them.

Head office costs allocated to projects will be the same for the choices of alternatives (replacing or not replacing the machine).

The Head office costs are a costs that is incurred at Head office as well.

Thus, Head Office Costs allocations are <em>irrelevant</em> and must not be included in the analysis.

4 0
3 years ago
Planet Company purchased goods worth $50,000 in July and expects to purchase goods worth $70,000 in August. Planet typically pay
trapecia [35]

Answer:

57,000

Explanation:

Planet company purchases goods worth $50,000July and also expect to purchase goods worth $70,000 in August

They pay 35% of tbs purchase in the month and 75% in the following month

Therefore the total expected cash disbursement can be calculated as follows

= (70,000×35/100)+(50,000+65/100)

= {70,000×0.35) + (50,000+0.65)

= 24,500+32,500

= 57,000

6 0
2 years ago
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