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lora16 [44]
3 years ago
11

Rudyard Corporation had 110,000 shares of common stock and 11,000 shares of 7%, $100 par convertible preferred stock outstanding

during the year. Net income for the year was $420,000 and dividends were paid to both common and preferred shareholders. Rudyard's effective tax rate is 25%. Each share of preferred stock is convertible into four shares of common stock. What is Rudyard's diluted EPS (rounded)
Business
1 answer:
Burka [1]3 years ago
7 0

Answer:

$2.73

Explanation:

<em>Diluted Earnings Per Share = Earnings Attributed to Common Stockholders ÷ Weighted Average Number of Common Stockholders Outstanding</em>

where,

Earnings Attributed to Common Stockholders = $420,000

and

Weighted Average Number of Common Stockholders Outstanding = 110,000 + (11,000 x 4) = 154,000

therefore,

Diluted Earnings Per Share = $420,000 ÷ 154,000 = $2.73

Conclusion

Rudyard's diluted EPS is $2.73

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Lohn Corporation is expected to pay the following dividends over the next four years: $20, $16, $15, and $8.50. Afterward, the c
Vesnalui [34]

Answer:

Current share price=$1.49

Explanation:

The current share price of the stock can be expressed as;

Current share price=D1/(k-g)

where;

D1=Expected annual dividend per share

k=required rate of return

g=growth rate of dividend

In our case;

D1=Average dividend per share=(20+16+15+8.5)/4

D1=59.5/4=$14.875

k=15%

g=5%

Replacing;

Current share price=14.875/(15-5)

Current share price=14.875/10

Current share price=$1.49

7 0
3 years ago
What is the required return for a stock that has a constant-growth rate of 3.3%, a price of $25, an expected dividend of $2.10,
Sav [38]

Answer:

11.7%

Explanation:

The required rate of return = (D1/ / price) + g

The required rate of return = (2.1 / 25) + 0.033

The required rate of return = 0.084 + 0.033

The required rate of return = 0.117

The required rate of return = 11.7%

8 0
3 years ago
an organization that seeks to operate efficiently and effectively to achieve its goals without focusing on profit as a motive
Likurg_2 [28]

Answer: A non profit organization

Explanation: A non profit organization is an establishment created to perform efficiently and effectively, without necessarily making profit as its aim.

They most times function in the area of humanitarian needs, health and medicine, financially empowering the unemployed in communities.

The non profit organization are most times sponsored by government of nations, international bodies ( such as UN, WHO, UNESCO).

6 0
3 years ago
Why is investing in a mutual fund less risky than investing in a particular company’s stock?
amm1812
Risk is measured by the probability of loss. If one invested everything he had in 1 specific stock, and that stock drops in a major way, then he loses a lot. This is a high-risk setup. On the other hand, if one divides his portfolio into several stocks, then his risk is much lower, because it is less likely that all those stocks drop at the same time. So this is how mutual funds diversify their portfolios to lower risk, and the right answer is C.
8 0
3 years ago
Read 2 more answers
According to equity theory, employees tend to experience anger or frustration when they perceive _________.
gregori [183]

According to equity theory, employees tend to experience anger or frustration when they perceive being<u> </u><u>under-rewarded</u>.

Fairness theory is an idea of motivation that suggests that employee motivation at paintings is driven in large part by their feel of equity. Employees create an intellectual ledger of the inputs and consequences of their activity after which use this ledger to evaluate the ratio of their inputs and outputs to others.

The equity idea focuses on figuring out whether or not the distribution of sources is honest to each relational companion. equity is measured by way of evaluating the ratio of contributions and benefits for everybody.

The fairness principle is in play when people say such things as: “Andy earns more than I do, but doesn't do almost as a lot of work!” “I am getting paid a lot much less than Andy, but this region would disintegrate without me!”

Learn more about equity theory here brainly.com/question/14639287

#SPJ4

7 0
2 years ago
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