To calculate the amount of net income assignable to common shareholders' equity, the analyst does not
a. subtract all amounts required to compensate other providers of financing for the use of their funds.
b. make any further adjustment for interest.
c. subtract from net income any earnings allocable to preferred stock equity usually the dividends on preferred stock declared during the period.
d. subtract dividends on common stock.
e. none of the above
D
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Kevin transfers $10,000 to his brother to pay off a loan. Two months later, Kevin files for bankruptcy. This transaction can be voided by the bankruptcy trustee.
Answer the following statement true (T) or false (F)
In horizontal analysis the percent change is computed by:
A. Subtracting the base period amount from the analysis amount, then dividing the result by the analysis period amount. B. Subtracting the base period amount from the analysis period amount. C. Subtracting the base period amount from the analysis period amount, dividing the result by the base period amount, then multiplying that amount by 100. D. Subtracting the analysis period amount from the base period amount. E. Subtracting the analysis period amount from the base period amount, dividing the result by the base period amount, then multiplying that amount by 100.
Citran Company will earn $150,000 revenue as payment for a three-year consulting engagement. Compute the NPV of the revenue using Appendix A if Citran will received $35,000 cash immediately (year 0), $35,000 cash next year (year 1) and $80,000 cash the following year (year 2). Citran will report the revenue as taxable income in the year received. Its marginal tax rate is 30%, and it uses an 8% discount rate.
What will be an ideal response?
Berkshire Hathaway's "A" stock has never split. As a result, in mid-2014 one share of its stock was selling at a price of more than ________ per share
A) $190 B) $1,900 C) $19,000 D) $190,000