Evaluate the relative profitability of the two companies

Assignment Help Accounting Basics
Reference no: EM13534105

EPS

OfficeMax and Staples are two companies competing in the retail office supply business. OfficeMax had a net income of $667,000 for a recent year, while Staples had a net income of $738,671,000. OfficeMax had preferred stock of $36,479,000 with preferred dividends of $2,818,000. Staples had no preferred stock. The outstanding common shares for each company were as follows:


Average Number of


Common Shares Outstanding

OfficeMax

77,483,000

Staples

721,838,000

a. Determine the earnings per share for each company. Round to the nearest cent.

b. Evaluate the relative profitability of the two companies.

Reference no: EM13534105

Questions Cloud

Effect of cash dividend and stock split : Effect of cash dividend and stock split - affect Indigo Inc.'s total assets, liabilities, and stockholders' equity
Explain freezing point depression constant for camphor : Freezing point depression constant for camphor is 37.7 def C/m. If 225 mg of caffeine dissolved in 7.5g of camphor lowers the freezing point of the caphor by 5.82 deg C, the molecular mass of the caffeine is
Calculate what is the kinetic energy of the ball : An outfielder throws a 0.150 kg baseball at a speed of 36.0 m/s and an initial angle of 30.0°. What is the kinetic energy of the ball at the highest point of its motion
Correct choice indicated : Correct choice indicated
Evaluate the relative profitability of the two companies : Determine the earnings per share for each company and evaluate the relative profitability of the two companies.
Explain delta h rxn equal to delta hf for the product : For which one of the following reactions is the value of delta H rxn equal to delta Hf for the product
Estimate how far from the gun does the other fragment land : A shell is shot with an initial velocity v0 of 18 m/s, at an angle of ?0 = 60° with the horizontal. How far from the gun does the other fragment land
Stock transactions for corporate expansion : Stock transactions for corporate expansion - Journalize the entries to record the foregoing transactions.
Describe key decisions you are responsible : Describe key decisions you are responsible

Reviews

Write a Review

Accounting Basics Questions & Answers

  Amount of purchased differential amortization

What is the amount of purchased differential amortization included in the calculation of investment income on Schneide's book in 2005 and 2006?

  Static budget amount-favorable variances

The CEO asks, "How can actual operating income be roughly 12% of the static budget amount when there are so many favorable variances?"

  Masure the practical and conceptual reasons for reporting

evaluate the practical and conceptual reasons for the reporting requirements of research and development costs required

  Journalize assignment of overhead to assembly

Journalize the assignment of overhead to the Assembly and Finishing Departments. (For multiple debit/credit entries, list amounts from largest to smallest eg 10, 5, 3, 2.)

  How to give the entry for the issuance

Give the entry for the issuance, assuming the par value of the common was $5 and the market value $30, and the par value of the preferred was $40 and the market value $50. (Each valuation is on a per-share basis and there are ready markets for eac..

  Compare the tax consequences to the shareholder and the

compare the tax consequences to the shareholder and the distributing corporation of the following three kinds of

  Four elements of budgeting cycle

Discuss the four elements of the budgeting cycle. What are the human aspects of budgeting? Do you have a budget for personal expenses? Does it work?

  Problem related to charitable contribution deduction

Stock in Acme Corporation acquired 7 months ago and held as an investment, donated to Southwest University 4,000 6,200 How much qualifies for the charitable contribution deduction?

  Annual exclusions to be claimed on gift tax return

Her husband makes no gifts in the current year. Sandra's annual exclusions to be claimed on her gift tax return total:

  Video toys manufacturers and sells arcade games dividends

video toys manufacturers and sells arcade games. dividends are currently 1.50 per share and are expected to grow at a

  Assumption by cardinal corporation of a mortgage

Carl transfers land to Cardinal Corporation for 90% of the stock in Cardinal Corporation worth $20,000 plus a note payable to Carl in the amount of $40,000 and the assumption by Cardinal Corporation of a mortgage on the land in the amount of $100,..

  Evaluate the reasons for the selection of the cost drivers

From the e-Activity, identify a local medium-sized service business in your community. Evaluate how you would implement a performance-focused ABC system in the company as described in the e-Activity.

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