Knight Co. owned 80% of the common stock of Stoop Co. Stoop had 50,000 shares of $5 par value common stock and 2,000 shares of preferred stock outstanding. Each preferred share received an annual per share dividend of $2 and is convertible into four shares of common stock. Knight did not own any of Stoop's preferred stock. Stoop also had 600 bonds outstanding, each of which is convertible into ten shares of common stock. Stoop's annual after-tax interest expense for the bonds was $2,000. Knight did not own any of Stoop's bonds. There are no excess amortizations or intra-entity transactions associated with this consolidation. Stoop reported net income of $300,000 for 2018. Knight has 100,000 shares of common stock outstanding and reported net income of $400,000 for
2018.What would Knight Co. report as consolidated diluted earnings per share (rounded)?
A. $5.89.
B. $4.00.
C. $4.71.
D. $6.37.
E. $8.71.
Answer: A
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The master budget normally covers:
A. Three months. B. 5-10 years. C. 1-5 years. D. 1 year.
The flashlight batteries produced by one of the northern manufacturers are known to have an average life of 60 hours with a standard deviation of 4 hours. Use Chebyshev's theorem to answer the following questions. a.At least what percentage of flashlights will have a life of 54 to 66 hours?b. At least what percentage of the batteries will have a life of 52 to 68 hours? c. Determine an interval for the lives of the batteries that will be true for at least 80% of the batteries. (Hint: First compute the Z-score.)
What will be an ideal response?
Use this information for questions that refer to the World Tennis Ball (WTB) Company case.World Tennis Ball Co. (WTB) makes tennis balls and sells them only in the United States. Raul Fernandez, the firm's marketing manager, is comparing his firm's distribution with two major competitors.1) WTB sells its products through four regional distributors, who then sell to 22 sporting goods wholesalers. The wholesalers sell to a total of 7,000 retail outlets. From its website, WTB also sells directly to any customer who will purchase a minimum quantity of 24 tennis balls. WTB cooperates with members of its channel but maintains some control through its economic power and leadership. It helps to direct the activities of the whole channel and tries to avoid or resolve channel conflicts.2)
American Tennis Ball (ATB) is a competitor that sells through two distributors-each with half the country. The distributors then sell through six sporting goods wholesalers, and they, in turn, sell to 1,000 retail outlets (split between two national sporting goods chains and two general merchandise stores). ATB and its channel make little effort to work together. However, because of a relatively low level of competition between the distributors, the wholesalers, or the retail stores, each member of the channel gives the product special attention.3) National Tennis Ball (NTB) sells its products through only three tennis specialty wholesalers that sell only to tennis clubs. NTB actually owns the wholesale firms that handle its products. NTB's balls are only available at certain tennis clubs and NTB limits coverage to only one club in a particular geographic area. Which of the following describes WTB's channel arrangements? A. intensive distribution B. corporate channel system C. exclusive distribution D. reverse channels E. traditional channel system
Without ______ a contract may be void
a. a fair exchange of property b. the presence of a witness c. genuine consent by both parties d. a court order e. none of the other choices are correct