Answer:
a) c. $4.34
b) b. $4.10
Explanation:
a) Find Farewell's diluted earnings per share for 2021.
Use the formula below:
Diluted EPS = (Net income after tax - preferred dividend) / diluted common stock
Diluted EPS = $4.34 per share
b) stock options = 5,000
Value in current shares = 500,000/12 = $4,167
Diluted shares = 5000 - 4167 = 833
Use the formula below to find the diluted earnings per share:
Diluted EPS = Net income/share outstanding
Diluted EPS = $4.10 per share
Answer:
See attached picture.
Explanation:
See attached picture for explanation.
Answer:
Fixed costs are high, variable costs are low
Explanation:
The reason is that the fixed costs are high because these fixed costs are uncontrollable and their might not be an alternative which means we have to move with higher fixed costs. And this is because most of tasks in manufacturing are handled by the machines not humans. So the cost of maintenance, depreciation, etc are fixed costs which are uncontrollable.
Furthermore, the company has very small variable costs because the company enjoys economies of scales, fast paced manufacturing machines, etc. And this is controllable by investments in another more robust machinery.
Answer:
The correct answer is (B)
Explanation:
Deviant workplace behaviour is a voluntary action of the employees that negatively affects the organisational structure and operations. It is a counterproductive behaviour in which employees do not put all the efforts into work and sometimes even withdraw. It goes against the legitimate interest and well-being of an organisation. It also affects other employees, firms and clients.
Answer:
The stock price is $33.26
Explanation:
<u>Dividend of the year</u>
D1 = 1.85 * 1.24
D1 = 2.294
D2 = 2.294 * 1.18
D2 = 2.70692
D3 = 2.70692 * 1.12
D3 = 3.0317504
D4 = 3.0317504 * 1.06
D4 = 3.213655424
Price at year 4 = 2.70692 * 1.12 * 1.06^2/(14%-6%)
Price at year 4 = 42.58093437
Current price = 2.294/1.14 + 2.70692/1.14^2 + 2.70692*1.12/1.14^3 + 2.70692*1.12*1.06/1.14^4 + 42.58093437/1.14^4
Current Price = $33.26
So, the stock price is $ 33.26
