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alex41 [277]
3 years ago
14

At December 31, 2020 and 2021, Funk & Noble Corporation had outstanding 820 million shares of common stock and 2 million sha

res of 8%, $100 par value cumulative preferred stock. No dividends were declared on either the preferred or common stock in 2020 or 2021. Net income for 2021 was $426 million. The income tax rate is 25%. Calculate earnings per share for the year ended December 31, 2021. (Round your answer to 2 decimal places.)
Business
1 answer:
Iteru [2.4K]3 years ago
6 0

Answer:

The earnings per share for the year ended 31st December 2021 is $0.52

Explanation:          

                                                                  million

Net income                                                   $426,000,000

preferred dividends(2million*8%)                         ($160,000)

Net income attributable to common shares   $425,840,000

Earnings per share =earnings attributable to common stock/common stock

common stock 820,000,000

Earnings per share=$425,840,000/820,000,000

Earnings per share=$0.52

The earnings attributable to each common  stock is $0.52 per share

The earnings per share is the dividend potential of Noble corporation, which implies the amount from  which dividends can be paid and also from investment projects can also be funded as retained earnings is the cheapest form of finance from availability and affordability points of views.

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Answer:

b. Short-term loss of $700 and a long-term gain of $900.

Explanation:

August 1, 2018, price per share $50

August 1, 2019, sold 50 shares at $36, resulting in a short term capital loss of ($700)

August 31, 2019, sold 50 shares at $68, resulting in a long term capital gain of $900

If you own a stock for 1 year or less, any gain/loss will be considered short term. If you own a stock for more than 1 year, any gain/loss will be considered long term.

8 0
3 years ago
What type of advertising communicates the specific features, values, and benefits of a product offered by a particular company?
steposvetlana [31]

Answer:

c. brand advertising

Explanation:

<em>c. brand advertising </em>

It engage the consumer to purchase the product or service being advertised.

a. internal advertising

this adverize is done to hire vacants inside the company instead of hiring from utside the company

b. corporate advertising

Is done to put into radar of consumer the entire organization or company. It d not advertize for an individual brand or product.

d. institutional advertising

It is done to focus on the benefits, ideas, or philosophies of the organization. It is done to iprove the reputation. It buils positive image. It do not sale a product or service.

8 0
2 years ago
As indicated in the chapter, return on investment (ROI) is well entrenched in business practice. However, its use can have negat
Juliette [100K]

Answer:

ROI = net profit / total investment

1. What is the current return on investment (ROI) being realized by your division

  • ROI = $625,000 / $4,150,000 =  15.06%

2. What would happen to the near-term ROI of your division after adding the effect of the new investment?

  • ROI = ($625,000 + $50,000) / ($4,150,000 + $550,000) =  14.36%

If you carry out the new project the ROI of your division will decrease.

3. As manager of this division, given your incentive compensation plan, would you be motivated to make the new investment?

  • Even though the new project's return (9.1%) is considered acceptable by upper management, you will probably reject it since it will decrease your division's total ROI. When managers are assigned bonuses based on certain achievements, reducing your profitability ratio will probably result in no bonus.
6 0
2 years ago
Address You, a fancy dress manufacturer, sold a dress for $8,000 on credit. The cost of producing this dress was $1,000. First,
givi [52]

Answer:

It will affect the accounting equation in $7.000.

Explanation:

The Assets will increase in $8.000 because Address You now have the right to claim to a customer $8.000 and is recognized in the Receivables. At the same time, Address You has to diminish its inventories at $1.000, because it delivered the dress to the customer. Finally, on the other hand, the profits for selling the dress ($8.000 - $1.000) affect the equity, and now the Accounting equation is balanced.

3 0
3 years ago
Outstanding stock of the West Corporation included 40,000 shares of $5 par common stock and 10,000 shares of 5%, $10 par non-cum
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Answer:

Dividend paid = (5%× 10,000 × $10) = $5000.

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<em>Preference shares entitles the holders to  participate in a fixed dividend out of the profit made by the company. The divide is always a fixed percentage of the nominal value of the preference shares</em>

It can be cumulative and non-accumulate.

Cumulative <em>simply implies that should the company misses the payment of dividend in a particular year such unpaid dividend would be carried carried forward and paid in arrears in the following year/</em>

Non-cumulative i<em>s the exact opposite of the case . Here, unpaid dividends are not paid in arrears in fact such are forfeited for life.</em>

Dividend in Year 1

Dividend paid in Year 1 was $ 4000 but ought to be $5,000 (5%× 10,000 × $10). An arrear of $1000

Dividend in Year   2

Dividend paid = (5%× 10,000 × $10) = $5000.

Note that the unpaid dividend of $1,000 in year 1 is lost forever

3 0
3 years ago
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