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Anika [276]
4 years ago
12

At December 31, 2021 and 2020, P Co. had 67,000 shares of common stock and 6,700 shares of 5%, $100 par value cumulative preferr

ed stock outstanding. No dividends were declared on either the preferred or common stock in 2021 or 2020. Net income for 2021 was $755,000. For 2021, basic earnings per common share amounted to: (Round your answer to 2 decimal places.) Multiple Choice $10.77. $5.00. $10.72.
Business
1 answer:
dmitriy555 [2]4 years ago
6 0

Answer:

The basic earnings per share is $10.77

Explanation:

Basic earnings per share is the earnings specifically for common stockholders.

This is computed by dividing earnings after preferred dividends with weighted average number of common stock which is the same as the common stock outstanding  of 67,000 shares.

Earnings after preferred dividends=$755,000-(6700*5%*$100)

                                                         =$755,000-$33,500

                                                         =$721,500

Basic earnings per share=$721,500/67000=$10.77

The correct option is first one of the multiple choices provided

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Answer:

10% is a high-profit margin

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Solution:

In years      Best estimate of return            Working note

5                   12.36%              ((5-1)/(40-1)*0.1024)+((40-5)/(40-1)*0.126)

10                   12.06%             ((10-1)/(40-1)*0.1024)+((40-10)/(40-1)*0.126)

20                    11.45%               ((20-1)/(40-1)*0.1024)+((40-20)/(40-1)*0.126)

The formula for the return on assets is calculated by dividing the net income by the total average assets. The profit margin and total asset sales can also be represented as a consequence of this ratio. For the calculation of the total asset return, either formula may be used.

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3 years ago
Bank reserves are $200, the public holds $1000 in currency, and the reserve-deposit ratio is 20%. What is the Value of Bank Depo
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Answer:

What is the Value of Bank Deposits?

bank deposits = bank reserves / required reserve ratio = $200 / 20% = $1,000

What is the Money Supply?

money supply = bank deposits + currency held by the public = $1,000 + $1,00 = $2,000

Suppose that the Fed sells $50 worth of bonds in an "open market sale." Assuming that the public does not wish to change the amount of currency it holds, what is the new money supply after this open market purchase?

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Answer:

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Strong arguments are those that provide probable support for an idea. Weak arguments fail to provide support for different matters. Then, when talking about marketing, strong arguments are more likely to engage consumers with a product while weak arguments can attract consumers at low levels but the ideas lack reliability.

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Learn more about Marxist-socialist tenets here

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