Preferred dividends-calculate the earnings per share

Assignment Help Financial Management
Reference no: EM131014771

Assume there are 600,000 shares of common stock authorized by ABC Corporation. Of those, 500,000 shares have been issued. Later, 100,000 shares of the issued shares were repurchased by ABC Corporation and are currently held as Treasury Stock. Net Income for the year was $1,600,000. There are no preferred dividends. Calculate the earnings per share (eps).

Reference no: EM131014771

Questions Cloud

What is the composition of vapor in equilibrium with liquid : Estimate the temperature where half the p-xylene in the liquid has crystallized. Has either of the other isomers formed a solid at this temperature? What is the lowest temperature that the system can have in which only p-xylene crystallizes? Wh..
Corporation pays interest payments : If a corporation pays interest payments of $900,000 to bondholders on debt it has, and its Earnings Before Interest and Taxes (EBIT) is $6,000,000, what is taxable income? $__________What is the tax due?
Assume the marginal tax rate : Assume the Marginal Tax Rate is 34%. If a corporation received $1,000,000 in interest income from corporate bonds it holds in another corporation, how much is subject to tax? $___________, what is the tax due? $_________, how much do they clear after..
What is the marginal tax rate and average tax rate : Assume taxable income for Maxwell Corporation is $200,000. Calculate the tax due here. What is the marginal tax rate? What is the average tax rate, show work?
Preferred dividends-calculate the earnings per share : Assume there are 600,000 shares of common stock authorized by ABC Corporation. Of those, 500,000 shares have been issued. Later, 100,000 shares of the issued shares were repurchased by ABC Corporation and are currently held as Treasury Stock. Net Inc..
Applicable legal restraints on business : The objective of this project is to familiarize the student with applicable legal restraints on business.  It is important that each prospective business manager be able to locate applicable law regulating the business activity
Bond issue outstanding with an annual coupon : Quantitative Problem: Potter Industries has a bond issue outstanding with an annual coupon of 6% and a 10-year maturity. The par value of the bond is $1,000. If the going annual interest rate is 7.2%, what is the value of the bond? Round your answer ..
Focuses on cost allocation : This week's question focuses on cost allocation. A major manufacturer decided to put one of its divisions up for sale because managerial information showed the components produced by this division is losing money.
Required return exceed farleys required return : Bradford Manufacturing Company has a beta of 1.9, while Farley Industries has a beta of 0.75. The required return on an index fund that holds the entire stock market is 8.5%. The risk-free rate of interest is 6.75%. By how much does Bradford's requir..

Reviews

Write a Review

Financial Management Questions & Answers

  What will be total cost of payables in euros

On January 10, VW agrees to import auto parts worth $7 million from the US. The parts will be delivered on March 4 and are payable immediately in dollars. VW decides to hedge its dollar exposure by entering into CME futures contracts. If the hedged p..

  Computer stocks currently provide expected rate of return

Computer stocks currently provide an expected rate of return of 14%. MBI, a large computer company, will pay a year-end dividend of $1 per share. If the stock is selling at $20 per share, what must be the market's expectation of the growth rate of MB..

  How would the minimum yearly cash inflow change

Breakeven cash inflows The One Ring Company, a leading producer of fine cast silver jewelry, is considering the purchase of new casting equipment that will allow it to expand its product line.  If One Ring requires a 9% return on its investment, what..

  What is the bonds capital gain or loss yield

Ezzell Enterprises' noncallable bonds currently sell for $939.00. They have a 5-year maturity, semi-annual coupon rate of 12.00%, and a par value of $1000. What is the bond's capital gain or loss yield?

  Capital requirements obtained from different sources

The cost of capital may change when there are incremental capital requirements obtained from different sources, resulting in changes in capital structure. What qualitative considerations are important for a company seeking to raise capital? Answer th..

  Analyze how each of the hypothetical policy changes

Analyze how each of the hypothetical policy changes would affect people's decision to retire. Would the change induce people to retire sooner or later - An increase to 100 percent from its current 85 percent in the maximum fraction of Social Secur..

  What were the initial markup percentage

A retailer bought a sofa for $200. The initial price was $449, however the sofa sold for $329. What were the initial markup percentage_______________; maintained markup percentage_______________; markdown percentage__________; and reduction percentag..

  At what investment rate will the annuity stream

Respond to the items below. Part A: Given the following cash inflow at the end of each year, what is the future value of this cash flow at 6%, 9%, and 15% interest rates at the end of the seventh year? At what investment rate will the annuity stream ..

  Coupon bonds on the market t

Aloha Inc. has 8 percent coupon bonds on the market that have 13 years left to maturity. If the YTM on these bonds is 10.42 percent, what is the current bond price?

  Assume semi-annual coupon payments

What is the yield to maturity of a 23 year bond that pays a coupon rate of 8.25% per year and has $1,000 par value and is currently priced at $1,298.05. Assume semi-annual coupon payments. Round the answer to two decimal places in percentage form.

  What will the eps of stultz be after the merger

The shareholders of Flannery Company have voted in favor of a buyout offer from Stultz Corporation. Flannery has a P/E ratio of 6.35, 71,000 shares outstanding, and earnings of $239,000. Stultz has a P/E ratio of 12.70, 132,000 shares outstanding, an..

  What is the current value of the companys stock

JJ Industries will pay a regular dividend of $1.30 per share for each of the next four years. At the end of the four years, the company will also pay out a $44 per share liquidating dividend, and the company will cease operations. If the discount rat..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd