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lora16 [44]
2 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]2 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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The risk-free rate is 5%; Stock A has a beta of 2.0; Stock B has a beta of 1.0; and the market risk premiumis positive. Which of
butalik [34]

Answer:

C) If Stock B's required return is 11%, then the market risk premium is 6%.

Explanation:

In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below

Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)

The (Market rate of return - Risk-free rate of return)  is also known as the market risk premium

If we take the required return is 11%, so the market risk premium would be for stock B

11% = 5% + 1 × Market risk premium

11% - 5% = Market risk premium

So, the market risk premium would be 6%

If we take the required return is 11%, so the market risk premium would be for stock A

11% = 5% + 2 × Market risk premium

11% - 5% = Market risk premium

So, the market risk premium would be 3%

Hence, the correct option is C

3 0
3 years ago
Bauerly Co. owned 70% of the voting common stock of Devin Co. During 2012, Devin made frequent sales of inventory to Bauerly. Th
kolezko [41]

Answer:

                                                                         $                            $

Net Income (137000*30%) (a)                                             41,100

Add:  

Unrealized gains in the beginning inventory 40,000  

Unrealized gains at the end of the year         25,000  

Difference                                                         15,000  

(NCI in Unrealized gain (15,000*30%) (b)                             4,500

Non-controlling interest's share of Devin's net income for 2012 ($41,100+$4,500)                                                                    45,600

Non-controlling interest's share of Devin's net income for 2012= $45,600

Explanation:

7 0
3 years ago
jervis sells 3400 of its accounts receivable to northern bank in order to obtain necessary cash northern bank charges a 2% facto
lesya692 [45]

Answer:

Factoring fee = 2% * Account Receivable

= 2% * $3,400

= $68

​

Date  Account Titles and Explanation     Debit    Credit

          Cash                                                   $3,332

          Factoring expenses                           $68

                    Account receivables                             $3,400

          (To record the receipt of cash against the receivables)

6 0
2 years ago
A second method for determining the forecasted cost at completion assumes that, regardless of the efficiency rate the project or
ElenaW [278]

Answer:

Answer is the FCAC is greater than the TBC.

Refer below.

Explanation:

A second method for determining the forecasted cost at completion assumes that, regardless of the efficiency rate the project or work package has experienced in the past, the work to be performed on the remaining portion of the project or work package will be done according to budget. If the cumulative actual cost is greater than the cumulative earned value, then: FCAC is greater than the TBC.

4 0
2 years ago
Mervon Company has two operating departments: mixing and bottling. Mixing occupies 23,045 square feet. Bottling occupies 18,855
fiasKO [112]

Answer:

Mixing= $112,000

Bottling= $91,800

Explanation:

Giving the following information:

Mixing occupies 23,045 square feet

Bottling occupies 18,855 square feet.

Total sq= 41,900

Indirect factory costs include maintenance costs of $204,000.

First, we need to calculate the proportion of square feet for each department:

Mixing= 23,045/41,900= 0.55

Bottling= 18,855/41,900= 0.45

Now, we can allocate overhead:

Mixing= 0.55*204,000= $112,000

Bottling= 0.45*204,000= $91,800

7 0
3 years ago
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