Answer:
$1.28
Explanation:
The computation of the earning per share is shown below:
As we know that
Earning per share = Net income ÷ Number of shares outstanding
where,
Net income is
Earning before interest and taxes $24,600
Less: Interest
($60,000 × 6%) - $3,600
Income before tax $21,000
Less: tax for 40% - $8,400
Earning after tax $12,600
Less: Preference dividend
(1,500 shares × $5) -$7,500
Income available $5,100
So the earning per share is
= $5,100 ÷ $4,000
= $1.28
Answer:
c. Exporting
Explanation:
Exporting strategy -
It offers the prospective of new markets , better profit , more sales and wider spread of customers .
The strategy can even make the person successful .
The strategy of export is based on the assessment of the position and the research into a promising opportunities .
Hence , from the options given , the most appropriate is the Exporting .
Dividend to be paid to Preference shareholders in 2014= No of Preference shares*par value per share*Percentage of Shares
=2500*50*4%
=$5000
Dividends declared duing 2014=$3000, Thus Preference share holders need to be paid $2000 , in 2015, as preference shares are cumulative in nature.
Dividend to pe paid to Preference shareholders in 2015= $5000+$2000
=$7000.
Dividend to be paid to common share holders= $18000-$7000
=$11000
Thus B will be the answer.
Answer:
d) EPS cannot be calculated if a company has no preferred stock.
Explanation:
The above statement is untrue about E.P.S because the reason why 'Preferred dividend' (which is dividend on preference shares) is subtracted from Net Income, before being divided by the 'Average Number of Common Shares Outstanding' is for comparability.
Since the denominator is based on 'common shares' or 'ordinary shares', it makes sense not to include the part of income that has fallen to preferred shares.
As a matter of fact there are a lot of companies that do not have preferred stock and still report Earnings Per Share on their financial statements.
Finally, still on comparability; E.P.S helps to compare the performance of big companies that have preferred stock with small companies that do not have. Hence EPS can be calculated even when there is no preferred stock.
Answer:
The correct answer is option A,strategic alliance
Explanation:
Strategic alliance it is a form of partnership where businesses avail one another strategic resources in the areas of supply chain management,production,marketing,distribution,technological advancement and know-how for the joint benefits and advantage of all partners.
In this case,Alpha as the leader in laptop designing is combining resources with another technological giant Microchips Inc. in order that they may complement each other's efforts.The synergy impact of such arrangement is enormous as each partner concentrates on what he knows best.
