If net income is $250,000 and interest expense is $30,000 for Year 2, what are the earnings per share on common stock for Year 2?
a. $4.16
b. $4.32
c. $4.02
d. $2.49
c
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According to the text, new ventures launched by entrepreneurial teams are more likely to be successful than ventures launched by
A. established corporations. B. lone wolf entrepreneurs. C. individual investors. D. bootstraps.
Protective Corporation acquired 70 percent of the common shares and 60 percent of the preferred shares of Safety Corporation at underlying book value on January 1, 20X6. At that date, the fair value of the noncontrolling interest in Safety's common stock was equal to 30 percent of the book value of its common stock. Safety's balance sheet at the time of acquisition contained the following balances: Assets$700,000 Liabilities$110,000 Preferred Stock 100,000 Common Stock 200,000 Retained Earnings 290,000 Total Assets$700,000 Total Liabilities and Equities$700,000 The preferred shares are cumulative and have an 8 percent annual dividend rate and are three years in arrears on January 1, 20X6. All of the $10 par value preferred shares are callable
at $12 per share. During 20X6, Safety reported net income of $80,000 and paid no dividends.Based on the preceding information, what is Safety's contribution to consolidated net income for 20X6? A. $56,000 B. $48,000 C. $80,000 D. $72,000
Competition laws are intended to prevent inappropriately large concentrations of economic power, such as _____________.
Fill in the blank(s) with the appropriate word(s).
A red herring is an investment banking firm that purchases a securities issue from the issuing corporation with a view to eventually selling the securities to brokerage houses, which, in turn, sell them to the public
Indicate whether the statement is true or false