Answer:
Diluted earnings per share is $1.7 per share
Explanation:
The number of diluted shares from the options is calculated thus
Total number of shares from options 34,500
Actual number of shares that can be purchased
(options shares*option price/share market price)
(34,500*$11/$15) (25,300)
Diluted shares 9,200
Diluted earnings per share=net income/(outstanding common stock + diluted common stock)
net income is $331,840
outstanding common stock is 186,000
diluted common stock is 9200
diluted earnings per share=$331,840/(186,000+9200)
=$1.7 per share
Answer:
e) $37.05
Explanation:
Using the dividend growth model, the value of a stock is the present value of the future dividends receivable discounted at the required rate of return . The required rate of return is given as 12%.
So we discount the year 3 dividend using the dividend growth model formula
P = D (1+g)/r-g
r- rate of return, g = growth rate
Present value of the future dividends:
PV of Year 1 = 1.55(1.015)m × 1.12^(-1)
= 1.4047
PV of Year 2 = 1.55 (1.015)(1.015) × 1.12^(-2)
= 1.27
PV of Year 3 (this will be done in two steps)
Step 1; PV (in yr 2) of year 3 dividend
= (1.55)(1.015)^2×(1.08)/(0.12-0.08)
=43.114
Step 2 : PV (in yr 2) of year 3 dividend
=43.114 × (1.12^(-2))
= 34.37
Best estimate of stock = 1.40 + 1.27 +34.37
= $37.05
Note
To discount the year 3 dividend, we use two steps. The first stp helps get the PV in year 2, and step 3 helps to take it further to the PV in year 0
Answer:
Date Accounts Titles & Explanation Debit Credit
Dec 31 Rent Expense $2,040
($6,120 *2/6)
Prepaid Rent $2,040
Dec 31 Deferred Revenue $525
Service Revenue $525
Dec 31 Salaries Expense $700
Salaries Payable $700
Dec 31 Supplies Expense $2,390
($3,100 - $710)
Supplies $2,390
Demon Deacons Corporation
Adjusted Trial balance
December 31, 2021
Accounts Debit$ Credit$
Cash 9,100
Account receivable 14,100
Prepaid rent 4080
Supplies 710
Deferred revenue 1,575
Salaries payable 700
Common stock 11,000
Retain earnings 5,100
Service revenue 45,245
Salaries expenses 31,200
Rent expenses 2,040
Supplies expenses <u>2,390</u> <u> </u>
Total $<u>63,620</u> $<u>63,620</u>
Prepaid rent = 6,120 - 2,040 = 4080
Supplies = 3100 - 2390 = 710
Deferred revenue = 2,100 - 525 = 1575
Answer:
Evans Company
General Journal
Part a.
Debit : Cash $645
Debit : Cost of goods sold $375
Credit : Sales Revenue $645
Credit : Merchandise $375
Part b.
Debit : Cash $432
Debit : Cost of goods sold $195
Credit : Sales Revenue $432
Credit : Merchandise $195
Part c.
Debit : Accounts Receivable $670
Debit : Cost of goods sold $438
Credit : Sales Revenue $670
Credit : Merchandise $438
Part d.
Debit : Credit Card fees $85
Credit : Cash $85
Explanation:
The Perpetual inventory system calculates the cost of sale and inventory balance on each and every sale made hence the journals above.
Less money up front equals it to be better than renting an appartment
