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Kay [80]
3 years ago
14

On January 2, 2021, Coronado Industries issued at par $298000 of 7% convertible bonds. Each $1,000 bond is convertible into 60 s

hares. No bonds were converted during 2021. Coronado had 106000 shares of common stock outstanding during 2021. Coronado's 2021 net income was $168000 and the income tax rate was 25%. Coronado's diluted earnings per share for 2021 would be:________ (rounded to the nearest penny)a. $5.18 b. $4.90 c. $4.67 d. $4.53
Business
1 answer:
Sliva [168]3 years ago
7 0

Answer: $1.48

Explanation:

Coronado's diluted earnings per share for 2021 would be calculated thus:

Net interest savings = ($298000 × 7%) × (1 - 25%)

= ($298000 × 0.07) × 75%

= $15645

Weighted average common stock outstanding will be:

= 106000 + (298000/1000 × 60)

= 106000 + 17880

= 123880

Therefore, Coronado's diluted earnings per share will be:

= ($168000 + $15645) / 123880.

= $183645/123880

= $1.48

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3 years ago
You currently have $4,400 (Present Value) in an account that has an interest rate of 8% per year compounded annually (1 times pe
I am Lyosha [343]

Answer:

It will take 6 whole years to be able to withdraw all the money

Explanation:

To calculate the number of years it will take for the present value in your account to reach the future value we can adopt the expression below;

FV = PV (1 + r/n)^(nt)

where;

FV = the future value of the initial investment

PV = Present value of the initial investment

r = the annual interest rate

n = the number of times that interest is compounded per unit t

t = the time the money is invested for

In our case;

FV=$6,600

PV=$4,400

r=8/100=0.08

n=interest is compounded annually which is once a year=1

t=unknown

Replacing values in the formula;

6,600=4,400(1+0.08/1)^(1×t)

6,600=4,400(1+0.08)^t

6,600=4,400(1.08)^t

1.08^t=6,600/4,400

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