Answer:
When several types of potential common shares exist, the one that enters the computation of diluted EPS first is the one with the:
D. Lowest incremental effect
Explanation:
Diluted EPS:
Diluted EPS is known as diluted earning per share which is a method that is used to measure the determine the earning of business per share when all the convertible securities are used.
- Convertible securities are the simply those securities which include, warrants, convertible bonds etc.
The formula for calculating diluted EPS is as follow:
Diluted EPS = (Net income - Preferred dividend) / (convertible securities + Outstanding shares)
- So, the option d is correct as in the computation of diluted EPS, lowest incremental effect comes first.
Answer:
Option (A) is the correct answer to this question.
Explanation:
The cessation of the Sporty line would forfeit the profits produced by the Sporty line business, but the business (Beautiful Watches) will have to bear the $38,000 fixed expenses involved by Spotify Watches.
However, if production continued, the Sporty watches would have suffered a loss of $32,000. The company will bear fixed costs regardless of whether the company continues or discontinues the Sporty line market.
Accordingly, the gross operating profits should have been
= Total operating expenses - ( $ 38000 - $ 32000)
= $ 55000 - ( $ 38000 - $ 32000)
= $ 55000 - $ 6000
= $ 49000
There is also a fall of $6000 ($55000-$49000) in operating profits.
Other options are incorrect because they are not related to the given scenario.
The interest payable at the time period indicated will be $3000.
<h3>How to calculate the interest?</h3>
From the information given, the interest payable will be:
= Note value × Interest time × Time period
= $100000 × 9% × 4/12
= $100000 × 0.09 × 1/3
= $3000
In conclusion, the interest payable at the time period indicated will be $3000.
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Answer:
Check the explanation
Explanation:
If Mary issues stock, she would not be bearing any interest expense for the money she raised. since all the money she raised is through stock. Therefore, Cash flow for the year would be
$69000: [1592,000 *5150,000/ (V50,000+550,000)]
This is the cash flow for the year to be for Mary if she issues stock and remains open 6 days a week
Answer:
Wage rate is $5
Explanation:
The marginal utility of money=marginal utility of leisure/wage rate
When the formula is rearranged,wage rate is given thus:
wage rate=marginal utility of leisure/marginal utility of money
wage rate=15/3
wage rate =$5
In other words, the correct option is C,wage rate is $5
Option D would have been correct if the requirement was to calculate marinal utility of leisure
