Solution:
Numerator (Basic EPS): Net income = $900 million;
Preferred dividends = $27 million (9% x $100 = $9/share x 3 million;
Since the preferred stock is cumulative, the dividend is deducted whether or not paid)
Denominator (Basic EPS): Weighted average # shares of common stock outstanding
1/1 – 12/31 => 540 x (12/12) => 540 x 1.05 = 567
3/1 – 12/31 => (24) x (10/12) = (20) x 1.05 = 21
10/1 – 12/31 => 4 x (3/12) = 1
= 567 - 21 - 1 = 547
Weighted average # shares 190
Basic EPS = ( $900 - $27 ) ÷ $547
= $873 ÷ $547 = 1.59
Answer:
The given statement is <u>False.</u>
A balance sheet is often described as a "snapshot of a company's financial condition.
Answer:
Short-term creditors are most interested in liquidity ratios because they provide the best information on the cash flow of a company and measure its ability to pay its current liabilities or the money a company owes to its creditors.
Answer:
<em>2. EasyOpen's patent expired after 20 years</em>
Explanation:
<em>Patent rights last for about a limited period of time, as well as the right to file a lawsuit on other sides for infringement of the patent is centered on that time. </em>
Inventors and other patent proprietors may therefore choose to measure and evaluate their patent's expiry date.
It will mostly rely heavily on the date of filing of your patent application, and also the sort of patent they obtained.
Patents are defined as utility patents, patents on designs or patents on plants.
Patent protection for utility patents, which are the most common type of patent, and which EasyOpen Inc is part of, lasts 20 years after the patent application's filing date.