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zysi [14]
3 years ago
9

Getaway Travel Company reported net income for 2016 in the amount of $50,000. During 2016, Getaway declared and paid $2,000 in c

ash dividends on its nonconvertible preferred stock. Getaway also paid $10,000 cash dividends on its common stock. Getaway had 40,000 common shares outstanding from January 1 until 10,000 new shares were sold for cash on July 1, 2016. A 2-for-1 stock split was granted on July 5, 2016. What is the 2016 basic earnings per share?
A. $.56B. $.53C. $.42D. $.47
Business
1 answer:
PSYCHO15rus [73]3 years ago
4 0

Answer:

Option (B) is correct.

Explanation:

Given that,

Net income = 50,000

Preferred dividend = 2,000

Outstanding common stock:

= (40,000 × 2) + (10,000 × 6/12 × 2)

= 80,000 + 10,000

= 90,000

2016 basic earnings per share:

= (Net income - Preferred dividend) ÷ Outstanding common stock

= (50,000 - 2,000) ÷ 90,000

= 48,000 ÷ 90,000

= $0.53 per share

Therefore, the 2016 basic earnings per share is $0.53.

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The Fed offers three types of discount window loans. ________ credit is offered to small institutions with demonstrable patterns
Soloha48 [4]

Answer:

The answer options to this question are as follows:

to. Seasonal; extended; adjustment

b. Extended; adjustment; seasonal

c. Adjustment; extended; seasonal

d. Seasonal; primary; secondary

and. Adjustment; seasonal; extended

The correct answer is d. Seasonal; primary; secondary.

Explanation:

Seasonal credit is a freely available credit. Seasonality is a concept frequently used in the economic study. It assumes that a large part of the economic variables experience regular fluctuations or changes over time, which makes them predictable and facilitates their temporal study.

The fact that the aforementioned regular variations occur makes many aspects of the present day to be expected. That is, patterns of behavior are often formed in historical series that can be classified in periods of time and that show the evolution of some economic aspect, such as the demand for goods or services, supply, consumption, employment data. , prices, among others.

Primary credit, also known as net internal credit, refers to the financing that the Central Bank provides to residents in the country less the liabilities that it has in favor of these. It is obtained from the difference between the amount of the monetary base and that of net international assets.

Whereas sequential credit is issued on the basis of other credit, for example, a back to back credit.

5 0
3 years ago
Entitlement culture is the idea that __________________________. a. basic salaries are extra pay for sales performance rather th
Lunna [17]

Answer:

The correct answer is letter "D": bonuses are deferred salary rather than extra pay for extra sales performance.

Explanation:

In the corporate world, entitlement culture refers to the workers' beliefs that they deserve a series of privileges. This tends to happen during growth periods. Employees assume that the optimal situation of the firm has to do with their performances then, the organization owes them.

An idea that is commonly spread under such a scenario is that bonuses and commissions are deferred salaries and not extra payment for outstanding performance.

3 0
3 years ago
Value-added" describes the economic enhancement a company gives its products or services and helps explain why companies are abl
Eduardwww [97]

Answer:

What Is Value-Added?

The term "value-added" describes the economic enhancement a company gives its products or services before offering them to customers. Value-added helps explain why companies are able to sell their goods or services for more than they cost to produce. Adding value to products and services is very important as it provides consumers with an incentive to make purchases, thus increasing a company's revenue and bottom line.

Explanation:

3 0
2 years ago
You are evaluating a project that will cost $500,000, but is expected to produce cash flows of $125,000 per year for 10 years, w
boyakko [2]

Answer:

1. 4 years

2. No

Explanation:

Payback period calculates the amount of time to recoup the total investment made on a project. It calculates how long the cash flows generated from a project would cover the cost of the project.

The cost of the project is $500,000

Cash flows are $125,000 per year for 10 years.

In the first year, the cost of the project is reduced by $125,000 and becomes $375,000.

In the second year, the cost of the project is reduced by $125,000 and becomes $250,000.

In the third year, the cost of the project is reduced by $125,000 and becomes $125,000.

In the fourth year, the cost of the project is reduced by $125,000 and becomes $0.

The cost of the project is totally recouped in the 4th year. therefore, the payback period is 4 years.

But the company has a preferred payback period of 3 years ,therefore , the firm won't undertake the project because the payback period is more than 3 years.

3 0
3 years ago
Rolling Coast Inc. issued BBB bonds two years ago. These bonds provided a yield to maturity (YTM) of 11.5 percent. Long-term ris
vaieri [72.5K]

Answer: 9.2%

Explanation:

The interest rate that Rolling Coast should expect to issue new bonds will be calculated thus:

Firstly, we will calculate the previous risk premium on BBB bonds which will be:

= 11.5% - 8.7% = 2.8%

Then, the new risk premium on BBB bonds will be:

= Previous risk premium / 2

= 2.8% / 2

= 1.4%

Then, the interest rate that Rolling Coast should expect to issue new bonds will be:

= 7.8% + 1.4%

= 9.2%

8 0
2 years ago
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