The answer is <span>a. attempt to make large payments or bribes to influence policy decisions of foreign governments.</span>
Answer:
Diluted earnings per share is $2.87
Explanation:
The extent to which the option would dilute the earnings per share to the extent of the difference between the option of price and the share market price.
The shares that are capable of dilute the earnings can be computed thus:
Market price-option price/market price*outstanding options shares
market price is $36
option price is $30
outstanding options shares is 12,600
($36-$30)/$36*12,600=2,100 shares
Diluted earnings per share=$602,000/(208,000+2100)=$2.87
Answer:
Sustainable Growth Rate: 2.5%
Explanation:
Sustainable growth rate is calculated by multiplying return on equity with retention ratio.
Logic behind above is that whatever portion of net profit is retained by the Company, is used in the Company's operations, which earns certain percentage of equity known as return on equity. By multiplying both return on equity with retention ratio, we assume that the practice will continue for foreseeable future and the Company will continue to grow at the calculated growth rate.
Growth rate = Retention ratio * return on equity
Retention ratio = 50%
Return on equity = Net profit available for distribution / Opening equity
Return on Equity = (25,000 * 10%) / 50,000
Return on Equity = 5%
Growth Rate = 5% * 50%
Growth Rate = 2.5%
Answer:
Current Yield = 0.05882 or 5.882% rounded off to 5.88%
Explanation:
A current yield refers to the annual return that a security provides based on the interest or dividend payments it makes expressed as a percentage of it current price. Thus, the current yield on preferred stock can be calculated as follow,
Current Yield - Preferred stock = Dividend per year / Current price
Dividend per year = 100 * 0.06 = $6 per year
Current Yield = 6 / 102
Current Yield = 0.05882 or 5.882% rounded off to 5.88%
