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
Kay [80]
3 years ago
11

On December 31, 2020, Dow Steel Corporation had 600,000 shares of common stock and 300,000 shares of 8%, noncumulative, nonconve

rtible preferred stock issued and outstanding. Dow issued a 4% common stock dividend on May 15 and paid cash dividends of $400,000 and $75,000 to common and preferred shareholders, respectively, on December 15, 2021.
On February 28, 2021, Dow sold 60,000 common shares. In keeping with its long-term share repurchase plan, 2,000 shares were retired on July 1. Dow's net income for the year ended December 31, 2021, was $2,100,000. The income tax rate is 25%.

Compute Dow's earnings per share for the year ended 31, 2021.
Business
2 answers:
lara31 [8.8K]3 years ago
7 0

Answer:

EPS  = (Net Income- Preference dividends ) / Common Dividends

        = ($2,100,000-$75,000)/ (600,000 + 60,000 - 2,000)

       = $2,025,000/658,000

       = $3.08

Explanation:

The Net income for the year is already after all expense including taxes.

The shares sold means they were issued out to public and raised capital through the sale. Retired shares are first bought back the retired hence the minus 2000 shares.

SVEN [57.7K]3 years ago
6 0

Answer:

Dow's earnings per share for the year ended 31, 2021 is 335 cents

Explanation:

Earnings Per Share = Profit Attributable to Shareholders of Common Stock/Weighted Average Number of Common stocks

<u>Profit Attributable to Shareholders of Common Stock :</u>

Net income for the year                                                   $2,100,000

Less Dividends to preferred shareholders                        ($75,000)

Profit Attributable to Shareholders of Common Stock   $2025,000

<u>Weighted Average Number of Common stocks :</u>

Shares of Common Stock at the Beginning of the Year   600,000

Add Common Shares Shares Sold (6,000 × 10/12)                5,000

Less Shares Retired ( 2,000 × 6/12)                                        (1,000)

Weighted Average Number of Common stocks                604,000

Earnings Per Share = $2025,000/604,000

                                =  $ 3.35

                                =  335 cents

You might be interested in
How could the adoption of blockchain within a supply chain help the world become more sustainable and, in some cases, eco-friend
weqwewe [10]

Incomplete question. The options read;

  • Consumers could easily return and get refunds for products that didn't meet their expectations.
  • Consumers could still purchase items at a store even if they forgot their wallet and phone at home.
  • Consumers will be able to store their personal identifiable information for recurring purchases.
  • Consumers will be able to effectively track where the components of their product were sourced.

Answer:

  • <u>Consumers will be able to effectively track where the components of their product were sourced.</u>

Explanation:

Note, the term supply chain simply refers to the various distribution channels consisting of different individuals, activities, and resources that are involved in supplying a product or service.

Hence, by the adoption of blockchain technology, it would be <u>easier for </u><u><em>consumers will be able to effectively track where the components of their product were sourced</em></u> since the technology enables an open ledger of transactions.

7 0
3 years ago
a treasury bill has a face value of $65,000, an asked yield of 3.05%, and matures in 60 days. what is the price of this bill?
Nataliya [291]

the price of this bill is $64669.58 in 60 days.

In this question the given things is:

a treasury bill has a face value of $65,000.

yield percentace = 3.05%

time = 60days

the price of this bill = a face value of a treasury- (a face value of a treasury *yield percentage * given time per year)

the price of this bill = $65,000 - $65,000*(3.05/100)*(60/360)

the price of this bill =$64669.58.

To know more about everyone, click the below link

brainly.com/question/29714892?referrer=searchResults

#SPJ4

7 0
1 year ago
Quebec's cross-border linkages to the u.s. are most strongly developed with the state of:
Gnesinka [82]
<span>Maine, Quebec and New Brunswick all share about 611 miles of borderline territory. Between the three states, there are 24 border line crossings that can be used to go from Maine into either Canadian province. Some of these border lines are very heavily used traffic lanes that allow access to various other Canadian countries.</span>
8 0
3 years ago
Dante borrowed to buy a truck for his business. He borrowed from his parents who charge him simple interest. He borrowed from a
GenaCL600 [577]

Answer:

This cannot be solved. There isn't a number at the beginning.

Explanation:

8 0
3 years ago
New Age Electronics expects to earn $100,000 this year. Earnings will grow 3% indefinitely if the firm makes no new investments.
vampirchik [111]

Answer:

5.7 1

Explanation:

Given:

  • Earning expect: $100,000
  • Grow rate: 3% = 0.03 (g)
  • Discount rate: 10% = 0.1 (r)
  • Number of shares: 250,000

We need to find the EPS because all of the earnings are paid out as dividends

= $100,000/250,000 shares

= $0.4

=> Current price:

P = D1 / (r-g)

<=> P = 0.4 (0.1 - 0.03) = 5.7 1

So the price per share of stock is  5.7 1

Hope it will find you well  

4 0
3 years ago
Read 2 more answers
Other questions:
  • Jasper Company has a defined benefit pension plan. Effective at the beginning of the current year, the company retroactively ame
    8·1 answer
  • Happy Monkey Manufacturing currently has 20,000 shares of common stock outstanding. Its management believes that its current sto
    7·1 answer
  • The logistics/operations manager of a mail order house purchases two products for resale: king beds (K) and queen beds (Q). Each
    13·1 answer
  • If the total cost of producing 4 units is $150 and the marginal cost of producing the fifth unit is $20, then the total cost of
    14·1 answer
  • A shift which is designed to cause team b to encroach is a false start.
    5·2 answers
  • After the presentation, you discover that you provided some inaccurate figures. in a few cases, you inadvertently overstated by
    14·2 answers
  • You recently purchased a stock that is expected to earn 12.6 percent in a booming economy, 8.9 percent in a normal economy and l
    12·1 answer
  • Why might Robert choose to attend a technical school rather than a four-year university?
    5·1 answer
  • ABC reports income tax expense of $800,000. Income tax payable at the beginning and end of the year are $50,000 and $70,000, res
    9·1 answer
  • Put the following statements in the correct order to summarise the sequence of events in moving from the short-run to the long-r
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!