The formula used to determine free cash flow is cash from operations minus capital expenditures.
Answer:
EPS = $4.50
diluted EPS = $2.46
Explanation:
no option is correct since EPS = $4.50, and the rest of the options are all higher amounts. Diluted EPS are always smaller than EPS.
common stock outstanding = 1,000 stocks
bonds shares (diluted) = 1,000 stocks
net income = $4,500
bond interest = $10,000 x 6% x (1 - 30%) = $420
diluted earnings per share = ($4,500 + $420) / (1,000 shares + 1,000 shares) = $4,920 / 2,000 shares = $2.46
Answer:
Amount of change in millions (Revenue) = $1,339 (Increase)
Percent of change = 0.08178 = 1.88 % (Approx)
Explanation:
Given:
Current Previous
Revenue $72,618 $71,279
Find:
Amount of change in millions = ?
Percent of change = ?
Computation:
⇒ Amount of change in millions (Revenue) = Current year revenue - Previous year revenue
⇒ Amount of change in millions (Revenue) = $72,618 - $71,279
⇒ Amount of change in millions (Revenue) = $1,339 (Increase)
⇒ Percent of change = Amount of change in millions (Revenue) / Previous year revenue
⇒ Percent of change = $1,339 / $71,279
⇒ Percent of change = 0.08178 = 1.88 % (Approx)
Answer:
The correct answer is letter "B": required rate of return.
Explanation:
The required rate of return helps investors determine where to invest and allows them to compare their investment returns to all other choices. They can do this by taking the <em>Risk-Free Rate of Return, Inflation, </em>and <em>Liquidity</em> into account. The required risk of return is subjective and varies from investor to investor.
<em>The lower the required risk of return implies investors are confident in the stock providing them profits which is a signal of stability of that asset that will be interpreted in an increase in the stock value.</em>
