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$100,000 Common stock, $10 par 200,000 ................................ $300,000 Common shares .................................. 20,000 Total Advanced Problems Sterling...
Sterling Optical and Royal Optical both make glass frames and each is able to generate earnings before interest and taxes of $132,000. The separate capital structures for Sterling and Royal are shown here: Sterling Debt @ 12% Common stock, $5 par Total Common shares Royal $ 660,000 Debt @ 12% 440,000 Common stock, $5 par $1,100,000 Total 88,000 Common shares $ 220,000 880,000 $1,100,000 176,000 a. Compute earnings per share for both firms. Assume a 25 percent tax rate. (Round...
Sterling Optical and Royal Optical both make glass frames and each is able to generate earnings before interest and taxes of $97,600. The separate capital structures for Sterling and Royal are shown here Sterling Royal Debt @ 8% Common stock, $5 par Total Common shares $. 732,000 Debt @ 8% $ 244,000 976,000 $1,220,000 195,200 488,000 Common stock, $5 par $1,220,000 Total 97,600 Common shares a. Compute earnings per share for both firms. Assume a 25 percent tax rate. (Round...
Sterling Optical and Royal Optical both make glass frames and each is able to generate earnings before interest and taxes of $136,000. The separate capital structures for Sterling and Royal are shown here: Sterling Debt @ 10% Common stock, $5 par Total Common shares Royal $ 816,000 Debt @ 10% 544,000 Common stock, $5 par $1,360,000 Total 108,800 Common shares $ 272,000 1,088,000 $1,360,000 217,600 a. Compute earnings per share for both firms. Assume a 30 percent tax rate. (Round...
Sterling Optical and Royal Optical both make glass frames and each is able to generate earnings before interest and taxes of $113,600. The separate capital structures for Sterling and Royal are shown here Sterling Royal Debt @ 8% Common stock, $5 $ 852.000 Debt @ 8% $ 284,000 1,136,000 $1,420,000 227,200 568,000 Common stock, $5 par Total Common shares $1,420,000 Total 113,600 Common shares a. Compute earnings per share for both firms. Assume a 30 percent tax rate. (Round your...
Sterling Optical and Royal Optical both make glass frames and each is able to generate earnings before interest and taxes of $156,000. The separate capital structures for Sterling and Royal are shown here Sterling Royal Debt @ 12% Common stock, $5 pars $ 780,000 Debt @ 12% $ 260,000 520.000 Common stock, $5 par Total Common shares $1,300,000 208,000 $1,300,000 Total 104,000 Common shares a. Compute earnings per share for both firms. Assume a 30 percent tax rate. (Round your...
Stering Optcal anoth make glass frames and each is able to generate earnings before interest and taxes of $126,000. The separate capital structures for Sterling and Royal are shown here: Stering Royal s 252,000 1,008,000 $1,260,000 201,600 756,000 504,000 Common stock, $5 par Dett@ 10% Debt @ 10% Common stock, $5 par Total Common shares $1,260,000 Total 100,800 Common shares a. Compute eamings per share for both firms. Assume a 20 percent tax rato. (Round your answers to 2 decimal...
On October 10, the stockholders' equity of Sherman Systems appears as follows. Common stock-$10 par value, 88,000 shares authorized, issued, and outstanding Paid-in capital in excess of par value, common stock 880,000 296,000 992,000 Retained earnings Total stockholders' equity $2,168,000 1. Prepare journal entries to record the following transactions for Sherman Systems. a. Purchased 6,600 shares of its own common stock at $41 per share on October 11 b. Sold 1,400 treasury shares on November 1 for $47 cash per...
The capital structure for Cain Supplies is: Cain Supplies Debt @ 10% Common stock, $10 par Total Common shares $ 290,000 580,000 $ 870,000 58,000 Compute the stock price for Cain if it sells at 20 times earnings per share and EBIT is $88,000. The tax rate is 30 percent. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Stock price
On July 1, 2017, Jones Limited had the following share structure: Common shares (par $1; 200,000 authorized shares; 150,000 issued and outstanding) Contributed surplus Retained earnings $150,000 88,000 172,000 Required: Complete the following table based on three independent cases involving share transactions: (Round your par value answers to 2 decimal places.) Case 1: The board of directors declared and issued a 10 percent stock dividend when the share price was $8 per share. Case 2: The board of directors declared...
Bernie Corporation has 200,000 shares of $10 par common stock outstanding and 100,000 shares of $100 par, 6% cumulative, nonparticipating preferred stock outstanding. Dividends have not been paid for the past two years. This year, a $3,000,000 dividend will be paid. What are the dividends per share payable to preferred and common, respectively? a. $6; $12. b. $18; $6. c. $6; $6. d. None of these answer choices is correct