Answer:
A. $5.17
Explanation:
Use the following formula to calculate the Earnings per share
Earnings per share = ( Net Income - preferred Dividend ) / Weighted average numbers of outstanding shares
Where
Net Income = $370,000
Preferred Dividend = 10,000 x $100 x 6% = $60,000
Weighted average numbers of outstanding shares = 54,000 shares + ( 18,000 shares x 4/12 ) = 54,000 shares + 6,000 shares = 60,000 shares
Placing values in the formula
Earnings per share = ( $370,000 - $60,000 ) / 60,000 shares
Earnings per share = $5.17 per share
Answer:
False
Explanation:
"Microeconomics" is the branch of economic theory that deals with behavior and decision making by small units such as individuals and firms.
However, Macroeconomics deal with structural analysis of the economy as a whole.
Explanation:
we should use income statement to find the new profit and the gross profit first then we can find out the expenses while doing it down on the statement anything which had written expenses is expenses.
Answer:
The Contribution margin ratio (CRM) is 78.57%
Explanation:
CRM (Contribution margin ratio), it indicates the percentage (%) of each sales dollar available to cover the fixed assets as well as profits of the company.
The formula to compute the contribution margin ratio (CMR) is as:
CMR (contribution margin ratio) = (Sales - Variable expense) / Sales
where
Sales amounts to $56
Variable cost or expense amounts to $12
Putting the values above:
CRM (contribution margin ratio) =($56- $12) / $56
= $44 / $56
= 78.57%
Answer:
Average annual rate of return should Louis expect to earn over the next four years is 10.7%
Explanation:
The formula we are going o use is:
Where:
R is the number of years over which Louis expect to earn.
N is the number of years of average arithmetic return.
i_{g} is the average geometric return=10.50%=0.105.
i_{a} is the average arithmetic return =11%=0.11.
Solution:
Average annual rate of return should Louis expect to earn over the next four years is 10.7%
