Which one of the following statements about earnings per share (EPS) is correct?
A. The EPS ratio is important because it signals the ability of the company to pay future dividends, which investors factor into the stock price.
B. Earnings per share (EPS) is generally reported in the balance sheet under stockholders' equity.
C. EPS, in its basic form, is calculated by dividing net income by the average number of preferred shares issued.
D. Earnings per share (EPS) is the best way to compare the performance of different companies.
Answer: A
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Which of the following lease conditions would result in a capital lease to the lessee?
a. The lessee will return the property to the lessor at the end of the lease term. b. The lessee can purchase the property for $1 at the end of the lease term. c. The fair market value of the property at the inception of the lease is $18,000; the present value of the minimum lease payments is $15,977. d. The lease term is 70% of the property's economic life.
Hank earns $24.00 per hour with time-and-a-half for hours in excess of 40 per week. He worked 50 hours at his job during the first week of March 2018. Hank pays income taxes at 15% and 7.65% for OASDI and Medicare. All of his income is taxable under FICA. Determine Hank's net pay for the week. (Do not round any intermediate calculations, and round your final answer to the nearest cent.)
A) $1122.00 B) $1021.02 C) $835.80 D) $799.80
The responsibility for the fixed overhead volume variance should be assigned to:
a. the purchasing manager. b. the production manager. c. the human resource manager. d. the CEO. e. None of the answers are correct.
Long-term creditors are usually most interested in evaluating:
A. Profitability. B. Solvency. C. Liquidity. D. Managerial effectiveness.