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olganol [36]
3 years ago
10

Information from the financial statements of Henderson-Niles Industries included the following at December 31, 2018: Common shar

es outstanding throughout the year: 100 million Convertible preferred shares (convertible into 10 million shares of common): 30 million Convertible 10% bonds (convertible into 17.0 million shares of common): $ 2,200 million Henderson-Niles’s net income for the year ended December 31, 2018, is $840 million. The income tax rate is 40%. Henderson-Niles paid dividends of $2 per share on its preferred stock during 2018. Required: Compute basic and diluted earnings per share for the year ended December 31, 2018. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)
Business
1 answer:
zalisa [80]3 years ago
8 0

Answer:

The basic and diluted earnings per share for the year ended December 31, 2018 are $ 0.24 / Share and $8.89 /share respectively.

Explanation:

BASIC EPS CALCULATION

The preferred dividend = 30 million x $ 2/share

                                        = 60 Million

Basic EPS = ( Net income - preferred dividends ) / weighted average common shares

                 = ($840 million - $ 60 Million ) / 100   million

                 = $ 0.24 / Share

DILUTED EPS CALCULATION

After-tax bond interest expense    =   $ 2.200 million x 10%

                                                         = $ 220 Million

$ 220 Million x (100 + 40%) = $ 308 Million after-tax interest expense.

Shares assume converted to common

Common Shares = 100 Million            

Preferred stock = 40 Million

Convertible bonds   = 17.0 Million

Total = 157 Million shares outstanding  

Diluted EPS   = ( $ 840 Million - $60 Million  + $308 Million+ $ 66 Million ) / 157 million  

                       = $8.89 /share

Therefore, The basic and diluted earnings per share for the year ended December 31, 2018 are $ 0.24 / Share and $8.89 /share respectively.

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Answer:

The correct word for the blank space is:  Permissive.

Explanation:

Permissive parenting is the style by which parents allow their children to do what the children consider best for them, even if it is not necessarily correct. Under this approach, parents are seen more like friends since they do not provide the children with a well-established set of rules.

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3 years ago
Sun Inc. assigns $6,000,000 of its accounts receivables as collateral for a $2 million 8% loan with a bank. Sun Inc. also pays a
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Answer:

The answer is: Assigning accounts receivables as collateral for a bank is not a asset transfer.

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Even as the bank offers Sun Inc. with a factoring limit, the accounts receivables are still in the firm's accounting book. The firm has the obligations to go after their debtors for collections. The account receivables are transferred to creditors when a company becomes defaulted or bankrupted.

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3 years ago
The following information is available regarding the total manufacturing overhead of Olsen Company for a recent four-month perio
Eduardwww [97]

Answer:

$33,000

Explanation:

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= ($198,000 - $153,000) ÷ (110,000 hours - 80,000 hours)

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= $1.5

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3 years ago
A store asked 250 of its customers to study the relationship between the amount spent on groceries and income. a meaningful disp
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A store asked 250 of its customers to study the relationship between the amount spent on groceries and income. a meaningful display of the data from this study would be <u>a scatterplot</u>

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When one continuous variable is under the experimenter's control and the other depends on it or when both continuous variables are independent, a scatterplot can be utilized. The data are shown as a series of points, with each point's value dictating its position on the horizontal axis and its value dictating its position on the vertical axis.

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8 0
1 year ago
Western Union is in the business of providing a medium for international money transfers. Through the services of Western Union,
tatiyna

Answer: core service

                                                 

Explanation: In simple words, core service refers to the service which are of highly value and importance to the user or provider or both.

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