Answer: D. The company reissues the treasury stock it holds.
Explanation:
Earnings per share is calculated by dividing the Net Income by the weighted average number of shares that a company has outstanding. If the company reissues treasury stock, this would increase the number of average stock outstanding thereby increasing the denominator of the EPS equation which would have the effect of reducing the Earnings per share.
For instance, if a company had net income of $50 and common equity outstanding of $40, the EPS would be;
= 50/40
= $1.25
If the company reissues treasury stock of $30, the EPS would change to;
= 50/ (40 +30)
= $0.71
Answer:
decrease
Explanation:
Marginal cost is a concept that explains the cost a company has to produce one more unit of good. This is a measure that is associated with the productivity of the inputs used in the production process. When a company increases production, marginal cost tends to decrease as inputs are better utilized. This is because the company specializes in production in order to streamline inputs and increase productivity.
Answer:
Miller's retained earnings on December 31, 2016 is $9,000,000.
Explanation:
Miller's retained earnings on 31 December 2016 = retained earnings on January 1, 2016 + net income - declared dividends
= $8,000,000 + $1,500,000 - $500,000
= $ 9,000,000
Therefore, Miller's retained earnings on December 31, 2016 is $9,000,000.
