Answer:
The answer is 'it increases the number of shares outstanding'
Explanation:
Stock split increases the number of shares outstanding. It causes dilution of earnings per share.
For example, ABC Inc. has 50,000 shares outstanding and it announces a stock split of 3-for- 1.
This means that any shareholder that has 1 will exchange that 1 share for 3 shares. So at the end of the stock split the total number of shares outstanding will be 150,000 shares (50,000 x 3)
Answer and Explanation:
The computation of the asset turnover for all three companies is as follows:
<u>Particulars YRC UNP CH
</u>
Sales 4697500 19941000 13144413
Divided by
Average
total assets 1824700 55159000 3436058
Assets turnover 2.6 0.4 3.8
Answer:
The correct answer is letter "D": Reliability.
Explanation:
In customer care, the quality dimensions refer to a set of five (5) characteristics companies must pay attention to in implementing their operations to attract customers and ensure their loyalty. Those characteristics are: Reliability, Responsiveness, Assurance, Empathy, and Tangibles.
Reliability refers to providing a service the customers can trust. Most consumers prefer traditional methods than innovative because the first has been proven to work. Then, <em>if a university promotes itself as a very traditional campus with an old-world look and feel, where the facilities are manicured and the dorm rooms are large, it is focusing on the reliability aspect of service quality.</em>
Answer:
We have to find the value of Larry's investement before and after the issue of new shares, to see if Larry's worries are justified.
The current value of Larry's investment is:
2,000 x $41.00 = $82,000
To find the value of Larry's investment if the new shares are issued, we use the following formula:
Investment = ¨[[(Oustanding shares x price per share) + (New issue of shares x price per share)]/ Outsanding shares + new issue] x No. of shares held
Investment = [[(20,000 x 41.00) + (5,000 x 32.80)] / 20,000 + 50,000] x 2,000
Investment = 39.36 x 2,000
Investment = $78,720
Thus, if the new shares were issued, Larry's investment value in the company would fall from $82,000 to $78,720, confirming his reasons to be worried.
Answer:
Times preferred dividends eared: 7.08333
Explanation:
income before taxes - taxes = net income
180,000 - 78,000 = 102,000
preferred dividends:
outstanding preferred shares x yield
$ 240,000 x 6% = $14,400
Times dividends earned:
102,000 / 14,400 = 7.08333333333
