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Olin [163]
3 years ago
10

Using the information presented above, determine the following: Determine EPS for Net Income ('x2) $_____________________ (Round

your answer to the nearest whole cent. Example: if you determine EPS from Net Income to be $6.94724, round your answer to 6.95. If you determine EPS from Net Income to be $6.94321, round your answer to 6.94. Do not use dollar signs in recording your answer.)
Business
1 answer:
taurus [48]3 years ago
6 0

Question Completion:

Income Before Taxes (from ongoing operations) $2,470,000

Income Tax Rate (’x2) 30%

5% Preferred Stock ($100 Par, 10,000 shares issued)

Common Stock ($1 par, 600,000 shares issued, 500,000 outstanding)

Answer:

The company's EPS is:

= 3.46

Explanation:

a) Data and Calculations:

Income Before Taxes (from ongoing operations) (’x2)= $2,470,000

Income Tax Rate (’x2) = (30% * $2,470,000) = $741,000

Net Income after taxes = $1,729,000

5% Preferred Stock ($100 Par, 10,000 shares issued) = $1,000,000

Common Stock ($1 par, 600,000 shares issued, 500,000 outstanding)

Outstanding common stock = $500,000

EPS (Earnings per share) = Net income after taxes/No. of outstanding shares

= $1,729,000/500,000

= $3.458

b) The earnings per share (EPS) equals Company A's net profit after taxes divided by the number of its outstanding common stock shares. Using the EPS, it indicates how much money Company A makes for each share of its stock.  As a widely used metric, a potential stockholder of Company A can use it to estimate Company A's value when combined with the price per share.

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Explanation:

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Suppose the United States has two​ utilities, Commonweath Utilities and Consolidated Electric. Both produce 20 million tons of s
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Answer:

The incomplete part of the question is "Using a cap-and-trade system of tradable emission allowances will eliminate half of the sulfur dioxide pollution at a cost of $1 million per year. If the permits are not tradable, what will be the cost of eliminating half of the pollution? If permits cannot be traded, then the cost of the pollution reduction will be $1 million per year." The full question is attched as picture as well

1) Tradable permit system

Then lower MAC firm will abate the all pollution units

Then as MAC1 = $250, MAC2 = $275

Firm 1 = Consolidated electric

Firm 2 = Commonwealth utility

Then 1 will sell all permits to 2, at a price between $250 & $275.

So total cost of abatement of 20 units = MAC1 * 20

= $250 * 20  Unit

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3 years ago
Stanley Corporation manufactures an electronic switch for dishwashers. The cost base per unit, excluding selling and administrat
sammy [17]

Answer:

So markup percentage will be 8 % on total unit cost

Explanation:

We have given that cost base per unit including selling and  administrative expenses is $60

per unit cost of selling and and administrative expenses is $15

The company desired ROI per unit is $6

We have to calculate the markup percentage on total unit cost

Markup percentage on total unit cost is given by '

markup percentage = \frac{desired\ ROI}{cost\ base\ per\ unit+ The \ per\  unit \ cost \ of \ selling \ and \ administrative\  expense}=\frac{6}{60+15}=0.08=8%  

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3 years ago
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3 years ago
Crystal Lodging recorded $330,000 in revenues, $247,500 in expenses, and $45,000 of dividends for the year. The company began th
Luda [366]

Answer:

Change in Assets is $127,500

Explanation:

The accounting equation for a corporation is:

Assets = Liabilities + Stockholders' Equity

⇒ Liabilities = Assets - Stockholders' Equity

= $285,000 - $130,500

= $154,500

At the end of years,

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The assets at the end of year = $168,000 + $244,500 = $412,500

Change in Assets = $412,500 - $285,000 = $127,500

Shorter answer:

Change in Assets = Change in Liabilities + Change in Stockholders' Equity

= $90,000 + $37,500 = $127,500

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