Answer:
Answer explained below
Explanation:
GIVEN:
options issued = 1000
exercise per share = $6
market price = $20
net income = $50000
a) Diluted earnings per share
= (Total income - preference dividends) /( outstanding shares + diluted shares)
Amount paid towards shares = Options issued * Exercise price per share = 1,000 * 6 = $ 6,000
Value of options = Amount paid towards shares / Current market price = $ 6,000 /$ 20 = 300
Diluted shares = Options issued - value of options = 1000 - 300 = 700
So Diluted Earnings per share = ( 50,000) / ( 10,000 +700) = $ 4.67 per share.
b) Calculation of diluted shares 700 (same as above )
Weighted average for the period holding i.e, 3 months = 700 *3/12 = 175 shares increased during the period.
Diluted EPS = 50,000 /(10,000 +175) = $ 4.91 per share
Answer:
Business Process Reengineering (BPR).
Explanation:
In Business Process Reengineering (BPR), when business processes are not on target, we can choose different approaches to fix the problem. If the company is not concerned with cost or much lower-level employee input and decides to take a radical approach that involves a high risk and a lot of time, we can conclude that it has used the Business Process Reengineering (BPR).
Hence, Business Process Reengineering (BPR) is a strategic approach to evaluating and designing business processes and workflow in order to successfully achieve organizational set goals and objectives in product quality and output.
Answer:
The activity that will expose Baldwin to the most risk of needing an emergency loan is:
Retires $20,000 (000) in long-term debt
Explanation:
If Baldwin wants to retire the long-term debt of $20 million, it requires an emergency loan because the available cash is not enough to settle the long-term debt. Emergency loans charge higher interest rates. Given the risk of debt default, putting itself in the position of having to retiring $20 million at a time is not so palatable. Such long-term debts are better retired with long-term finance sources, like issuing shares.
<span>You can delay your payments.
You can cancel the loan.
Discharge the loan by going bankrupt.
The best of these three would be your personal preference..
</span>
