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
Which of the following is a correct statement regarding the shipment of goods?
Nutka1998 [239]

Answer:

The answer is A) The shipping document must be in paper form.

Explanation:

When you are shipping goods (specially if you´re exporting or importing goods) you need a lot of paperwork done. The carrier, customs official, the banks involved, insurance companies, etc., all require several types of documents. The most important ones are:

  • Proforma invoice
  • Bill of Lading
  • Shipper´s Letter of Instructions (SLI)
  • Packing List
  • Commercial Invoice
  • Customs documents
  • Certificates of Origin
  • Dangerous Goods forms
  • Bank Draft

And all those documents need to be in paper form and some require several copies.

6 0
3 years ago
Equipment purchased at the beginning of the fiscal year for $150,000 is expected to have a useful life of 5 years, or 15,000 ope
CaHeK987 [17]

Answer:

(a). Depreciation for 1st year= $24,000

Depreciation for 2nd year= $24,000

(b). 1st Year Depreciation = $20,000

for 2nd year depreciation = $26,000

(c) 1st year Depreciation= $60,000

2nd year Depreciation = $36,000

Explanation:

a).

Annual Depreciation of Equipment = (Cost of Equipment - Residual Value) ÷ Useful Life of Equipment

= ($150,000 - $30,000) ÷ 5

= $24,000

Rate of Straight Line Depreciation = Annual Depreciation of Equipment ÷ (Cost of Equipment - Residual Value) × 100

= 24,000 ÷ ( $150,000 - 30,000) × 100

= $24,000 ÷ $120,000 × 100 = 20%

Depreciation for 1st year= $24,000

Depreciation for 2nd year= $24,000

b). Unit Of Production For 1st Year Depreciation= (Cost Of Equipment -Residual Value) × Annual Production Units ÷ Total Operating Hours

= ($150,000 - $30,000) × 2,500 ÷ 15,000 = $20,000

Unit of Production for 2nd year depreciation = ( $150,000 - $30,000) × 32,50 ÷ 15,000

= $26,000

c). Declining Balance Depreciation Rate = Straight Line Depreciation Rate × 2

= 20% × 2 = 40%   (Because Declining Balance at Twice the Straight Line Rate)

1st year Depreciation= $150,000 × 40÷100 = $60,000

2nd year Depreciation = ($150,000 - $60,000) × 40÷100 =$36,000

8 0
2 years ago
Erin has been analyzing the manufacturing process for a local company and is starting to see some changes because of her suggest
galben [10]

Answer: six sigma; eliminate waste.

Explanation:

Here's the remainder of the question:

This scenario is an example of [budget review, Six Sigma, Total quality managment], a principle that is most likely being implemented to[eliminate waste,foster teamwork,exceed customer expectations].

The scenario discussed in the question is an example of six sigma. Six Sigma refers to a data driven method that is used in detecting defects and eliminating wastes. It helps organizations improve their business processes capability which is vital in the improvement of performance and the reduction in defects.

Six sigma also beings about improvement in the morales of the workers, and the improvement in profits.

7 0
3 years ago
How do Human Services differ from other Consumer Services? is it to Human Services are nonprofit agencies that help individuals
Amanda [17]

The ACTUAL answer to this question is Human Services focus on helping individuals live better lives rather than providing solely commercial or corporate services. Originally I thought this was the right answer but I wanted to make sure, so the other person who answered this question made me doubt myself and choose the wrong answer. I would've gotten 100% if this person ACTUALLY knew the right answer instead of guessing. Also I was thinking that Human Services isn't non profitable, but I blew off any doubts because I ASSUMED they'd write the right answer because if you're gonna answer a question on here you should be sure that the info is correct. Please rate the other answer 1 star so people know not to trust their answer.

5 0
3 years ago
Read 2 more answers
9. OMG Corporation just paid a $1.50 annual dividend on each share. It is planning on increasing its dividend by 15 percent a ye
Afina-wow [57]

Answer:

ggdhdhdhdhdjdhdhdhdhdhdhdhdhdbdbdbdbdbdbdbdbdbdbdbdbdbdbdndndndndbrbdbdbdb

Explanation:

bdbdndhrhehrhrhrhdhdh

5 0
2 years ago
Other questions:
  • Six years ago a commercial property owner paid $490,000 for her complex which included 10 acres of land valued at $100,000. Usin
    9·1 answer
  • What determines the color or a translucent object
    7·2 answers
  • The owner of Showtime Movie Theaters, Inc., would like to predict weekly gross revenue as a function of advertising expenditures
    6·1 answer
  • If the NCUA charges 6.3 cents per 100 dollars insured and Credit Union L pays $8,445 in NCUA insurance premiums, approximately h
    8·2 answers
  • To help maintain a competitive advantage, the emphasis for most companies is on _____.
    14·1 answer
  • Calistoga Produce estimates bad debt expense at 0.50% of credit sales. The company reported accounts receivable and allowance fo
    6·1 answer
  • Economists look at any situation in terms of its component parts: the people making decisions, the environment in which they're
    10·1 answer
  • If Jane attends graduate school, it will take her two years, during which time she will earn no income. She will pay a total of
    7·1 answer
  • On January 1, Year 1, a contractor began work on a $3.2 million construction contract that is expected to be completed in 3 year
    11·1 answer
  • a hospital has not insured itself for malpractice claims with a third-party insurer. which of the following statements best expr
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!