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Svetllana [295]
3 years ago
15

Getaway Travel Company reported net income for 2021 in the amount of $68,000. During 2021, Getaway declared and paid $18,000 in

cash dividends on its nonconvertible preferred stock. Getaway also paid $28,000 cash dividends on its common stock. Getaway had 58,000 common shares outstanding from January 1 until 28,000 new shares were sold for cash on July 1, 2021. A 2-for-1 stock split was granted on July 5, 2021. What is the 2021 basic earnings per share
Business
1 answer:
Lynna [10]3 years ago
4 0

Answer:

$0.35 per share

Explanation:

According to the scenario, computation of the given data are as follows,

Net income = $68,000

Preferred cash dividend = $18,000

So, we can calculate the basic earning per share by using following formula,

Basic Earning per share = ( Net income - Preferred cash dividend) ÷ Outstanding common shares

= ($68,000 - $18,000) ÷ [( 58,000 × 2) + (28,000 × 2 × 6/12)

= $50,000 ÷ [ 116,000 + 28,000]

= $50,000 ÷ 144,000

= $0.35 per share

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Tcecarenko [31]

Internalizing a positive externality will result in the demand curve to 'shift to the right'. Therefore, option A <em>'shift to the right' </em>is the correct answer.

A positive externality exists if the consumption and production of a service or good benefits a third party that is not directly involved in the market transactions.  When a company <em>internalizes </em>a positive externality, then the demand for its products and services would increase. Since this improves the delivery of goods and services with improved quality to consumers without having any direct motives to increase the monetary income of the company. This is clearly a positive boosting factor for the company, which in turn, will increase the demand for the company's goods and services and shift the curve to the right.

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2 years ago
A stock has a required return of 11%; the risk-free rate is 7%; and the market risk premium is 4%.
kotegsom [21]

Answer:

The Beta is 1

The required return increases to 13%

Explanation:

The formula for required return is given below:

Required Return = Risk-Free Rate of Return + β(Market Return – Risk-Free Rate of Return)

required return is 11%

risk-free rate of return=7%

Beta is unknown

market return-risk free rate of return is market risk premium is 4%

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beta=4%/4%

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If the market risk premium increased to 6%,required return is calculated thus:

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This implies that the riskier the stock, the higher the market risk premium, the higher the required return to investors.

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atroni [7]

Answer:

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Explanation:

hope it helps

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