Answer: $123,583.90
Explanation:
Given the following Parameters,
Net income = $120,226,
Interest rate = 9%
Tax = 30%
The following formula then applies,
Diluted EPS = (Net income + Interest after tax)/Total outstanding shares outstanding
Now, Interest(Before tax) = $53,300 * 0.09 = $4797
Now we have to calculate it After Tax
= 4,797 (1-tax rate)
= 4,797(1-0.3)
= $3,357.90
The numerator is,
= (Net income + Interest after tax)
= 120,226 + 3,357.90
= $123,583.90
The numerator in the diluted earnings per share calculation for 2018 would be $123,583.90
A family day care allows you to make money while caring for your own children
Answer:
$120,000
Explanation:
The computation of increase shareholders' equity is shown below:-
Number of bonds issued = Total face value of bonds ÷ Face value per bond
= $1,000,000 ÷ $1,000
= 1,000 bonds
Increase in shareholders equity = Number of bonds × Share warrants per bond × Market price of each warrant
= 1,000 × 30 × $4
= $120,000
So, we have applied the above formula to determine the increase in shareholder equity.
Answer:
Yes as the average accounting rate of return is higher than 9.45%
Explanation:
The computation of given question is shown below:-
Average income = ($14,500 + $16,900 + $19,600 + $23,700) ÷ 4
= $74,700 ÷ 4
= $18,675
Now,
Average investment = ($300,000 + 0) ÷ 2
= $150,000
So,
Average accounting rate of return = Average income ÷ Average investment
= $18,675 ÷ $150,000
= 12.45
So, Yes as the average accounting rate of return is higher than 9.45%