Answer:
$4.67 per share
Explanation:
The computation of the diluted earning per share is shown below:
= (Total income - preference dividends) ÷ ( outstanding shares + diluted shares)
where,
Total income is $50,000
Outstanding shares is 10,000
And, the diluted shares is
Amount paid towards shares = Options issued × Exercise price per share
= 1,000 × 6
= $6,000
And,
Value of options = Amount paid towards shares ÷ Current market price
= $6,000 ÷ $20
= 300
So,
Diluted shares is
= Options issued - value of options
= 1,000 - 300
= 700
So Diluted Earnings per share is
= ($50,000) ÷ (10,000 + 700)
= $4.67 per share
We simply applied the above formula
Incomplete question. Answered from a general perspective.
<u>Explanation:</u>
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To find Simon's maximum amount he can borrow against his home you will use the Home Loan Value Formula.
Home is worth: $400,000
Remaining balance: $175,000
Borrow: up to 75% on home
First, you'll want to take the market value of $400,000 and multiply it by 75% (.75) which gives you $300,000.
Then, you'll need to subtract what Simon owes on the home to find the amount he can borrow.
$300,000 - $175,000 = $125,000
Simon can borrow $125,000 against his home.
1. D. to participate in the day-to-day operations.
Let's say that you buy a stock for microsoft, it doesn't make you able to come to their offices and help them handling the customers.
2. C. the risk of bankrupt is less
when you sell your company's stock to other buyers, that buyers will also take the risk from all your company's activity because technically they own a part of your company, which make the risk of going bankrupt is less, but you surrender a part of ownership of your company
3. B. Preferred Stock
Where a company liquidates its assets, they will distribute the payment to all the holders of preferred stock first.
If there's any leftover after the company distribute the payment to preferred stock holders, than that leftover is distributed to the common stock holders
Hope this helped you out
