Which one of these will increase earnings per share? A.Decreasing deferred taxes B.Increasing depreciation expense C.Lowering...
Which one of these will increase earnings per share?
A.Decreasing deferred taxes
B.Increasing depreciation expense
C.Lowering the operating income
D.Increasing the average corporate tax rate
E.Increasing the addition to retained earnings by reducing dividends paid
Homework Answers
Correct choice A
Decreasing deferred taxes will reduce tax expense and would increase the net income. This will result to a higher earning per share
B is incorrect becasue higher depreciation would reduce net income
C is incorrect becasue a lower operating income would lead to lower net income
D is incorrect because higher tax rate would decrease net income
E is incorrect becasue dividends do not affect EPS
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Which one of these will increase earnings per share?
A.Decreasing deferred taxes
B.Increasing depreciation expense
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Sales $15,093 Depreciation expense 578 Tax expense 394 Interest expense, gross 171 Earnings from continuing operations...
Sales $15,093 Depreciation expense 578 Tax expense 394 Interest expense, gross 171 Earnings from continuing operations (Net income) 685 EBITA 1,256 Cash 613 Average total assets 9,470 Total debt 2,908 Noncurrent deferred tax liabilities 391 Noncontrolling interest 0 Equity 871 Dividends paid 1,185 Cash from operating activities 2,451 how to calulate (round to one decimal place) 1. ebita to average assets 2.operating margin 3.debt to ebita 4.debt to book capitalization 5.retained cash flows to net debt
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1,
2,
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Calculating eamings per share and dividends per share- Excel Sign In REVIEW VIEW ME FORMULAS INSERT DATA PAGE LAYOUT A A Calbri 11 AAlignment Number Conditional Format as Cell Formatting Table Styles Editing Cells B IU Styles Font J H D G E C B Billy's Exterminators, Inc., has sales of $817,000, costs of $343,000, depreciation expense of $51,000, interest expense of $38,000, and a tax rate of 21 percent. The firm just paid...
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Cost of goods sold Depreciation expense Earnings after taxes Earnings before taxes Earnings before taxes Interest expense Sales Selling and administrative expense Taxes value: 20.00 points Lemon Auto Wholesalers had sales of $740,000 last year, and cost of goods sold represented 70 percent of sales. Selling and administrative expenses were 12 percent of sales. Depreciation expense was $18,000 and interest expense for the year was $11,000. The firm's tax rate is 30 percent. a. Compute earnings after taxes. Lemon Auto...
Prepare an income statement and compute earnings per share, with
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1,
2,
Elite Trailer Parks has an operating profit of $285,000. Interest expense for the year was $30,500; preferred dividends paid were $28,900; and common dividends paid were $36,800. The tax was $68,500. The firm has 21,600 shares of common stock outstanding. a. Calculate the earnings per share and the common dividends per share for Elite Trailer Parks. (Round your answers to 2 decimal places.) Earnings per share Common dividends per share b. What was the increase in retained eamings...
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Calculating eamings per share and dividends per share- Excel Sign In REVIEW VIEW ME FORMULAS INSERT DATA PAGE LAYOUT A A Calbri 11 AAlignment Number Conditional Format as Cell Formatting Table Styles Editing Cells B IU Styles Font J H D G E C B Billy's Exterminators, Inc., has sales of $817,000, costs of $343,000, depreciation expense of $51,000, interest expense of $38,000, and a tax rate of 21 percent. The firm just paid...
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