User Account

All Pages

What is the effect on earnings per share

Assignment Help Accounting Basics
Reference no: EM132461861

Question 1 - Fifo Inc. raises $4 million dollars by issuing shares of common stock. The market rate of interest is 10% at the time of issue. Assuming a corporate income tax rate of 30%, 100,000 common shares issued, and an increase in net income of $1,000,000 due to the additional resources, what is the effect on earnings per share?

a. $40 increase

b. $28 increase

c. $4.20 increase

d. $7 increase

Question 2 - Loretta Inc. issues 2,000 shares of preferred stock in exchange for land and building that have a fair value of $50,000 and $80,000 respectively. What is included in the journal entry to record this transaction?

a. A debit to Land and Building for $130,000

b. A debit to Land for $80,000

c. A credit to Preferred Stock for $130,000

d. A credit to Preferred Stock for $2,000

Reference no: EM132461861

Questions Cloud

What is net income for year : Ealing Corporation reported a balance in Retained Earnings of $2,796 million at the beginning of Year 7. What is net income for Year 7
State the random variable : A dishwasher has a mean life of 10 years with an estimated standard deviation of 1.05 years ("Appliance life expectancy," 2013).
Describe a contemporary monument in your city : Describe a contemporary monument in your city or in local area. Tell us the special significance it holds for the citizens of the city where it was erected.
What is the possibility that a red ball and a green ball : A box contains 3 red balls and 4 green balls. If two balls are randomly selected without replacement, what is the possibility that a red ball and a green ball a
What is the effect on earnings per share : Fifo Inc. raises $4 million dollars by issuing shares of common stock. Assuming a corporate income tax rate of 30%. What is the effect on earnings per share
Should professionals have a caring toward their clients : Should professionals have a caring toward their clients or should they maintain distance? What recommendations would you have from the Social Work Ethical.
What is the probability that a business will experience : A consulting firm offers a market viability study to businesses seeking to expand into a new market. In the past, when a business experienced expansion success
Find the probability of getting : find the probability of getting one who made a correct dosage calculation or was given the bottle with a concentration label.
Find the percentage of correct dosage? calculations : For the physicians given the bottles labeled with a? concentration, find the percentage of correct dosage? calculations, and then express it as a probability.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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