1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
borishaifa [10]
3 years ago
11

Burns Company reported $1,161.405 million in net income in 2021. On January 1, 2021, the company had 409 million shares of commo

n stock outstanding. On March 1, 2021, 29.4 million new shares of common stock were sold for cash. On June 1, 2021, the company's common stock split 2 for 1. On July 1, 2021, 13.4 million shares were reacquired as treasury stock.Required: Compute Burns' basic earnings per share for the year ended December 31, 2021
Business
1 answer:
CaHeK987 [17]3 years ago
4 0

Answer:

Earnings Per Share = $1.35

Explanation:

To calculate the basic earnings per share, we first need to compute the Weighted Average No. of Shares Outstanding:

Jan.1: 409 * (12/12)    = 409 * 2                                    = 818 million

Mar.1: 29.4 * (10/12)   = 24.5 * 2                                   =  49 million

July 1: 13.4 * (6/12)                                                        =   <u>(6.7) million</u>

Weighted Average No. of Shares Outstanding:        =   860.3 million

Note: We multiplied by 2 in Jan.1 and Mar.1 transactions to account for common stock split 2 for 1.

Now calculate the Earnings Per Share:

Earnings Per Share =   <u>                        Net Income                                </u>

                                    Weighted Average No. of Shares Outstanding

Earnings Per Share =       <u>1,161.405</u>

                                            860.3

Earnings Per Share = $1.35

You might be interested in
Operating leverage is easier to control and manage than financial leverage because operating leverage deals with the internal wo
zzz [600]

Answer: FALSE

               

Explanation: In simple words, operating leverage refers to the criteria which shows how much operating income can be increase by increasing the revenue of a project. Whereas, financial leverage refers to the level of debt that a firm has acquired for financing its operations.

The management of a company can easily control financial leverage as it is in their hands to issue or redeem debt. On the other hand, increase or decrease in operating income is dependent on various external factor.

Hence the given statement is false.

7 0
2 years ago
A ________ rate means the value of the currency is fixed relative to a reference currency and then the exchange rate between tha
Harlamova29_29 [7]

Answer:

Pegged exchange rate system

Explanation:

In the pegged exchange rate system, a country ties its currency exchange price to that of a more widely used currency at a fixed rate. The US dollar is the most accepted currency for international trade. Countries that use the fixed exchange system peg their currency price to the US dollar.   The government will set a  fix the exchange rate of its currency relative to the US dollar value.

A pegged exchange rate is also known as a fixed exchange rate. A pegged or fixed exchange rate keeps the currency value within a narrow range. It gives certainty to exporters and importers and helps the government to keep inflation low.

4 0
3 years ago
Read 2 more answers
Networking is a key benefit to a college education.which of the following is not an example of a networking benefit
Rufina [12.5K]

Answer:

D. Networking ensures higher-paying jobs.

Explanation:

Networking is the act of interacting and sharing information between a group of people with common interests in various settings, such as the work environment, schools, and other social gatherings. When students attend the same school, they share common interests and goals. Networking among them would pave way for possible help in the future with regards to finding a job. But it would be wrong to assume that networking would be a guarantee for higher-paying jobs.

Networking would also help graduates from college to interact with people who have progressed farther in their career than they have. So, they can learn from their wealth of experience.

4 0
3 years ago
A monopolist:
Llana [10]

Answer:

The answer is C. can earn profits or incur losses in the short run.

Explanation:

A monopolist maximizes profit or minimizes losses by producing that quantity that corresponds to when marginal revenue = marginal cost. However, if the average total cost is above the market price, then the firm will incur losses, equal to the average total cost minus the market price multiplied by the quantity produced

5 0
3 years ago
Raymond owns an Accidental Death and Dismemberment Policy with a principal sum of $50,000, and a capital sum of $25,000. After o
schepotkina [342]

Answer:

He will get nothing from the Accidental Policy.

Explanation:

  • Raymond owns an Accidental policy but he Dies from Coronary artery disease. according to insurance companies policy, he will get nothing when he is dead by any means other than by accident.
  • Insurance companies have their own regulations and policy.
  • The insurance company is liable to pay for the incident for which the insurance is taken.

6 0
2 years ago
Other questions:
  • Rene is the manager at an event and catering company. He has just received a request for proposal (RFP) for managing the City Ar
    6·1 answer
  • A client has a Cash Account at a broker-dealer and one week ago was sold out of a position for failure to make prompt payment. T
    13·1 answer
  • Poulter Corporation will pay a dividend of $3.25 per share next year. The company pledges to increase its dividend by 5.1 percen
    13·1 answer
  • Which of the following best represents the Plan step in the​ Plan-Do-Check-Act (PDCA)​ cycle? A. Implement the chosen course of
    14·1 answer
  • Samuel's Dad is looking to deposit a sum of money immediately into an account that pays an annual interest rate of 9.00% so that
    12·1 answer
  • Presented below is information related to Equipment owned by Bobcat Manufacturing, Inc. at December 31, 2019.
    11·1 answer
  • What can be used to customize how the data is tracked in the Conversions<br> column
    5·1 answer
  • Challenges associated with creating a benchmark program ​
    11·1 answer
  • Plz help...... What is a term deposite? ​
    9·1 answer
  • The eu has benefited firms in its member nations because.
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!