Compute earnings per common share

Assignment Help Finance Basics
Reference no: EM131750046

Question: The Bjorn Grad in Blade Manufacturing Corporation has 500,000 common shares and 200,000 preferred shares outstanding. The preferred shares call for an annual dividend of $ 1.60 per share. The firm has just issued $2,000,000 worth of 20-year debentures with a 1 0-percent coupon rate and sinking-fund payments of $ 1 00,000 per year. Corporate income taxes are 40 percent. Compute

(a) earnings per common share; and

(b) earnings per common share available after annual sinking-fund payments, for different assumptions about future performance. Assume that earnings before interest and taxes could be $7 50,000, $900,000, or $ 1,400,000.

Reference no: EM131750046

Questions Cloud

Discuss pretax income from continuing operations : Prepare the lower portion of the 2016 income statement beginning with pretax income from continuing operations
How many representatives would the minority group have : Use the information provided in the preceding problem with solution. Assume that the existing board of directors is interested in keeping minority.
How protecting older adults might actually lead to more harm : Provide 2 examples of how protecting older adults might actually lead to more harm than help.
Determine whether or not larry has legal grounds : Explore the legal rights and responsibilities of the tenant and the landlord - Decide whether or not the landlord and / or the tenant had a legal duty
Compute earnings per common share : The Bjorn Grad in Blade Manufacturing Corporation has 500,000 common shares and 200,000 preferred shares outstanding. The preferred shares call for an annual.
Describing your current and the compensation system : Write a short paper describing your current (or most recent) job and the compensation system in place at your current (or most recent) place of employment.
Difference between purchasing rights and purchasing warrants : Contrast rights and warrants from an issuer's point of view, with particular reference to how they come into being, what the issuer expects to receive.
Critically evaluate this advice and ideas : 1. List and briefly summarize Jeff Pfeffer's advice and ideas on power.
Discuss the equipment is expected to have no scrap value : The equipment is expected to have no scrap value and is depreciated over a 15-year useful life

Reviews

Write a Review

Finance Basics Questions & Answers

  What was your real rate of return

Last year, you earned a rate of return of 12.37 percent on your bond investments. During that time, the inflation rate was 3.6 percent. What was your real rate of return?

  Assume a required rate of return of 10 percent compute the

ted mckay has just bought the common stock of ryland corp. the company expects to grow at the following rates for the

  Write a one page summary about the article barings bank plc

Write a one page summary about the article Barings Bank PLC by Leeson's Lessons.

  What is the job worth to you today

You have a sub-contracting job with a local manufacturing firm. your agreement calls for annual payment of 82000 for the next 3 years. at a discount rate of 9.5 percent, what is the job worth to you today?

  Sketch out a cvp analysis graph depicting the base

Now assume that the practice contracts with one HMO, and the plan proposes a 20 percent discount from charges.

  What steps can this company take to diversify its portfolio

What steps can this company take to diversify its portfolio? Define diversification and its necessity in risk management.Discuss at least 5 steps to diversify the card business. Please give at least 6 suggestions of how and where funds can be allocat..

  What will be the value of their portfolio

If they sell their five rights but keep their stock at its diluted value and hold on their cash, what will be the value of their portfolio?

  Address the hazards identified in the community plan

Create a mitigation plan for yourself that addresses the hazards identified in the community plan as they affect you on a personal level.

  Should the firm accept the project

Should the firm accept the project? If total costs consisted of a fixed cost of $10,000 per year and variable costs of $95 per unit, and if only the variable costs were expected to increase with inflation, would this make the project better or worse?..

  Interest rates and returns on assets

The yield on Treasury bonds has increased because the government wants to borrow more from the public. The demand for money will

  I the stock currently sells for 47 per share what is the

rossdale inc. had additions to retained earnings for the year just ended 575000. the firm paid out 140000 in cash

  What is the amount of net accounts receivable

Obtain a copy of the annual report of Avon Products, Inc., for the most recent year. You can find the annual report at the company's website ( www.avon.com).

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