Treasury stock method of calculating diluted earnings share

Assignment Help Financial Management
Reference no: EM13885355

Which statement would be most consistent with the Treasury Stock Method of calculating diluted earnings per share?

A. The current market price of a Company's common shares has no bearing on the calculation of earnings per share

B. The best possible investment for a company is in its own common shares.

C. The main concern with the Treasury Stock Method is that it is always anti-dilutive to per share earnings.

D. It is more conservative to use basic shares outstanding than diluted share outstanding when calculating EPS

Reference no: EM13885355

Questions Cloud

About the payback method is true : Which ONE of the following statements about the payback method is true? The payback method is consistent with the goal of shareholder wealth maximization. There is no economic rational that links the payback method to shareholder wealth maximization.
The gallery expects to bring in additional cash flows : Cortez Art Gallery is adding to its existing buildings at a cost of $2 million. The gallery expects to bring in additional cash flows of $520,000, $700,000, and $1,000,000 over the next three years. Given a required rate of return of 10 percent, what..
Cash flows for a capital project : Given the following cash flows for a capital project, calculate the IRR using a financial calculator year
Markets in order from most efficient to least efficient : Arrange the following markets in order from most efficient to least efficient
Treasury stock method of calculating diluted earnings share : Which statement would be most consistent with the Treasury Stock Method of calculating diluted earnings per share?
Government to manufacture missile retrieval system : Jenstar had secured a contract from the U.S. government to manufacture a missile retrieval system. The contract required that Jenstar provide a qualification report showing that the system was tested and met all the government specifications.  Before..
What is the present value of the annuity : A 10-year annuity pays $2,500 per month, and payments are made at the end of each month. The interest rate is 9 percent compounded monthly for the first four years, and 7 percent compounded monthly thereafter. What is the present value of the annuity..
Company expects this equipment will lead to cash flows : Muncy, Inc., is looking to add a new machine at a cost of $4,133,250. The company expects this equipment will lead to cash flows of $815,822, $863,275, $937,250, $1,020,110, $1,212,960, and $1,225,000 over the next six years. If the appropriate disco..
What is the internal rate of return on this project : Quick Sale Real Estate Company is planning to invest in a new development. The cost of the project will be $23 million and is expected to generate cash flows of $14,000,000, $11,750,000, and $6,350,000 over the next three years. The company's cost of..

Reviews

Write a Review

Financial Management Questions & Answers

  Should speculators use currency futures or options

Discuss the following topic- "Should speculators use currency futures or options" - Options enable speculators to select the degree of downside risk that they are willing to tolerate.

  What real amount must you deposit year to achieve your goal

You want to have $2 million in real dollars in an account when you retire in 40 years. The nominal return on your investment is 10 percent and the inflation rate is 3.8 percent. What real amount must you deposit each year to achieve your goal?

  Reduce the retail value of the physical inventory to cost

Fuentes Company operates a large discount store and uses the retail method to estimate the cost of ending inventory. Management suspects that in recent weeks there have been unusually heavy losses from shoplifting or employee pilfer- age. Using the r..

  Identify the top companies in the industry

Identify an industry to focus on. Explain why you chose this industry - Identify the top companies in the industry

  What division of the atmosphere is most important to man

Name three controls of weather and climate.

  A quoted company is considering several long-term sources

a quoted company is considering several long-term sources of finance for expansion into new foreign markets. critically

  Risk-free rate-what is the market risk premium

Porter Inc's stock has an expected return of 12.25%, a beta of 1.25, and is in equilibrium. If the risk-free rate is 5.00%, what is the market risk premium?

  Wild water parks use to discount the cash flows of assets

Wanda's Wild Water parks wants to know what rate it should use to discount the cash flows generated by its assets. You have calculated Wanda's Wild Water parks' beta of assets as 1.2. If the risk free rate is 5.9% and the expected return on the marke..

  Expansion project-requires initial fixed asset investment

Summer Tyme, Inc., is considering a new 3-year expansion project that requires an initial fixed asset investment of $5.886 million. The fixed asset will be depreciated straight-line to zero over its 3-year tax life, after which time it will have a ma..

  Cost of retained earnings using gordon model approach

Heavy Snow Corporation just paid a dividend of $2.90 per share, and the firm is expected to experience constant growth of 4.20% over the foreseeable future. The common stock is currently selling for $52 per share. What is Heavy Rain's cost of retaine..

  Define what is the effective rate of interest

firm a stated rate of 10 percent interest. What is the effective rate of interest if the loan carries a simple 10 percent interest with a 20 percent compensating balance

  Comment on the liquidity and profitability performance

Analyse and comment on the liquidity and profitability performance of the selected company from the point of view of management, based on the financial statements for years 2008 to 2010.

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