Answer:
a. EPS = $4.78 per share
b. Basic EPS = $4.41 per share
Explanation:
a. Compute the earnings per share (EPS) of common stock
Number of shares outstanding = 38,000 + 10,000 + 1,000 = 49,000
EPS = Net income ÷ Number of common shares outstanding = $234,000 ÷ 49,000 = $4.78 per share
b. Compute the basic earnings per share of common stock
Preferred dividend = 6,000 × $50 × 6% = $18,000
Basic EPS = (Net income - Preferred dividend) ÷ Number of common shares outstanding = ($234,000 - $18,000) ÷ 49,000 = $4.41 per share
Answer:
The correct answer is A. Shopping and information agents
Explanation:
When a customer needs to acquire goods in the market, he needs the best information regarding those goods. That will allow you to optimize your purchases and act with good judgment.
If it is a minor purchase, the customer can do a market study. But when they are imported products, or when it comes to foreign trade operations, it is when it is more advisable to go to these professionals.
A purchasing agent acquires supplies and goods of all kinds for its customers, which can be individuals or companies. These clients need the goods to be able to develop their economic activity, but they are not aware of the market in a broad sense. That is why they resort to the figure of the purchasing agent, to do that work for him.
To carry out their functions, purchasing agents follow several steps:
- First they evaluate all the possible suppliers, investigating their degree of reliability and seriousness in the commercial relations.
- They contact them, negotiating quantities and prices, to get the best possible product, at the best price.
- Sometimes they request a sample of the product, to present it to the customer. This will determine if it suits your needs or not.
- Manage the entire purchase chain, solving any problems that may arise, until the final delivery of the product takes place
Answer:
$21
Explanation:
The earning per share of Rose Co. is $1.40
The benchmark PE of the organization is 15
We are required to find which stock price would be most appropriate
Therefore, the stock price can be calculated as follows
Stock price= Benchmark PE×Earning per share
= $1.40×15
= $21
Hence the stock price that would be considered appropriate is $21
Answer: If it looks bad it IS bad.
C.
BAD MEDIA
Answer:
Land, $65,625 and Garage, $39,375
Explanation:
The allocation would be done using the fair market values as basis. Fair market value is more appropriate as a basis instead of using the sizes of the building and the garage as basis.
Total fair market values = $125,000 + $200,000 + $75,000 = $400,000
Total amount paid for all assets = $210,000
Amount allocated to each asset = 
Amount allocated to land = 
= $65,625
Amount allocated to warehouse = 
= $105,000
Amount allocated to garage = 
= $39,375
