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2 years ago

The information below pertains to Barkley Company for 2015.

Business

1 answer:

Nataliya [291]2 years ago

6 0

Answer:

EPS: 3.04

Diluted EPS: 2.50

Explanation:

Earnings per share:

$EPS = \frac{income - preferred \: dividends}{common \: stock}$

preferred dividends: 2,112,000 x 6% = 126,720

2,240,000 income - 126,720 = 2,113,280‬

outstanding shares:

$6,959,000 / 10 each = 695,900

EPS 2,113,280 / 695,900 = 3,03675

Diluted EPS:

we will calculate as if all possible new share option are exercised.

convertible bonds

2,240,000 / 1,000 = 2,240 bonds

2,240 bonds x 30 possible new shares = 67,200

convertible preferred stock

2,112,000 / 100 = 2,112 preferred stock

2.112 x 3 possible new shares = 6,336‬

stock option: 75,800

Total shares: 695,900 + 67,200 + 6,336 + 75,800 = 845,236

2,113,280‬ / 845,236 = 2,50022 = 2.50

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= $130,000.

Explanation:

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2 years ago

A candidate for political office announces the following policies which, he says, economics clearly demonstrates will lead to hi

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Answer:

1. False 2. True

Explanation:

1. The candidate for political office announcing that the policy to reduce immigration from abroad which, he says, economics clearly demonstrates will lead to higher output in the long run; is false.

What increases output are the factors of production of which labor is a major component. When there are more people willing and able to work in an economy, they help companies to produce more output but that is not the case when immigration is reduced, obviously that would reduce productivity and output.

2. However his second claim is right, that making trade more open between the US and other countries will increase output on the long run.

Trade barriers like tariffs and duties impede the level of trade between countries which could either reduce the amount of money countries make after netting off custom duties or the price of imported goods are increased by the effect of tariffs. Increased price means reduced demand

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2 years ago

Read 2 more answers

Imagine that you are the CEO of Wal-Mart. Pick three ways discussed in this section to explain how you would improve customer se

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Answer:

make sure workers aren't slacking and helping customers

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2 years ago

Chez Fred Bakery estimates the allowance for uncollectible accounts at 3% of the ending balance of accounts receivable. During 2

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Answer:

$50,120

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Account receivable on December 31, 2021 × 3% = 600

Account receivable on December 31, 2021 = $600 ÷ 3% = $20,000

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Therefore, the balance of accounts receivable on January 1, 2021 is $50,120.

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2 years ago

Assume that you purchased 140 shares of Misty Company stock for $78 a share, that you received an annual dividend of $1.60 a sha

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Answer:

Return (%) = 17.43%

Explanation:

The return on investment is the sum of the dividends earned and capital gains made during the holding period of the investment.

Dividend is the proportion of the profit made by a company which is paid to shareholders.

Capital gains is another type of the return made on an equity investment as a result of increase in the value of the shares. It is difference between the cost of the share and the value at the time of disposal.

Therefore, we can can compute the return on the investment as follows:

Dividend= ($1.60× 140)= $224

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Total dollar return on Investment = $224+ $1680= $1904

Total return in (%) = Return/ cost of shares × 100

= 1904/ (140 × 78) × 100

= 17.43%

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2 years ago