Answer:
A. $0.90
Explanation:
Earning per share = (Net Income - dividends on preferred stocks)/average outstanding common shares
Particulars Amount
Earning After Tax 128750
Taxes 15000
Earning before Tax & Interest Expense 143750
Interest Expense (20000)
Earning after Interest, but before Tax 123750
Taxes (15000)
Earning after Taxes 108750
Preferred Dividends (18750)
Earning available for common stock holders 90000
common stock outstanding 100000
Earning per share 0.9
Therefore, The outstanding Earnings per share on the common stock was $0.90
Answer: b. Dow Jones Industrial Average
Explanation: The Dow Jones Industrial Average index futures has a multiplier of $10 times the index value which is used to calculate contract settlements and helps determine the dollar value of each point of price movement. For example, Dow multiplier is 10, meaning each Dow point is worth $10 per contract.
Answer:
time period
Explanation:
In accounting, the time period principle states that a firm must report its financial statements for specific periods of time. For example, the Securities and exchange Commission (SEC) requires public corporations to submit their financial reports every quarter. This is done in order for accounting periods to be comparable, e.g. comparing a quarterly report vs an annual report is not correct.
Answer:
4.7
Explanation:
The computation of the degree of operating leverage is presented below:
= Contribution margin ÷ Net income
= $59,690 ÷ $12,700
= 4.7
where,
Contribution margin = Sales - Variable costs
And, the net income would be
= Sales - Variable costs - Fixed costs
The net income is also known as earning before interest and taxes
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