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Nezavi [6.7K]
3 years ago
7

At December 31, 2021 and 2020, P Co. had 58,000 shares of common stock and 5,800 shares of 5%, $100 par value cumulative preferr

ed stock outstanding. No dividends were declared on either the preferred or common stock in 2021 or 2020. Net income for 2021 was $620,000. For 2021, basic earnings per common share amounted to: (Round your answer to 2 decimal places.)
Business
1 answer:
Finger [1]3 years ago
6 0

Answer:

$10.19 per share

Explanation:

With regards to the above, the basic earnings per common share is seen below;

Preferred dividend = Shares × Par value × Shares percentage

= 5,800 × $100 × 5%

= $29,000

So, basic earning per share = (Net income - Preferred dividend) ÷ Common shares

= ($620,000 - $29,000) ÷ 58,000

= $10.19 per share

Therefore, for 2021, basic earnings per common share amounted to $10.19

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Costly Corporation is considering a new preferred stock issue. The preferred would have a par value of $1000 with an annual divi
shutvik [7]

Answer:

28.63%

Explanation:

The computation of the cost of preferred stock is shown below:

Cost of the preferred stock = Dividend ÷ Price of the stock

where,

Dividend is

= $1,000 × $15%

= $150

And, the price of the stock is

= Market value of the stock - flotation cost

= $576 - $52

= $524

So, the cost of preferred stock is

= $150 ÷ $524

= 28.63%

We ignored the marginal tax rate i.e 40%

3 0
3 years ago
You are CEO of Eastco, and you recently paid $58,000 or about 2x revenue (well under industry average) to purchase Westco, which
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Answto be honest I really don’t know er:

Explanation:

4 0
4 years ago
6. Which of the following statements is NOT an element of a well-designed Service System?a. It is consistent with the operating
alekssr [168]

Answer:

e. It effectively separates the back office and the front office so each can focus on their own tasks in order to optimize their departmental performance.

Explanation:

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  • It is apart of service management, sued in service operations, and found in service marketing. It's designed for client contact, capital flows, and the level of customer involvement.
8 0
3 years ago
Nadira stood outside the mall and asked people which stores they visited and if they bought anything. If they said yes, she aske
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Answer: In-depth interview.

Explanation:

Nadira engaged the buyers at the mall in in-depth interview to gather information on the buyers behavior. An in-depth interview is a form of information gathering that involves, a one-on-one interaction between two people, where one person ask some set of questions and the other person offers sincere answers to questions asked.

8 0
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