Question

1. In 2019 Huber reported earnings per share (EPS) of $1.45 and it had 100,000 shares...

1. In 2019 Huber reported earnings per share (EPS) of $1.45 and it had 100,000 shares of common stock outstanding. If the firm paid common stock dividends of $1.00 per share, retained earnings would increase by ______. a. $175,000 b. $145,000 c. $125,000 d. $75,000 e. $45,000\

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Here,

EPS = $1.45

Shares of common stock outstanding = 100,000

Total earnings available for equity shareholders = 1.45 * 100,000

= 145,000 $

Firm paid dividend of 1 $ per share.

Total dividend paid = 1 * 100,000

= 100,000 $

Retained earnings = Total earnings available for equity shareholders - Total dividend paid

= 145,000 - 100,000

= 45000 $

Hence correct answer is e.

Hope it helps!

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Calculation of EPS and retained earnings  Everdeen Mining​, ​Inc., ended 2019 with net profits before taxes...
Calculation of EPS and retained earnings  Everdeen Mining​, ​Inc., ended 2019 with net profits before taxes of $ 436 comma 000$436,000. The company is subject to a 21 %21% tax rate and must pay $ 64 comma 000$64,000 in preferred stock dividends before distributing any earnings on the 170 comma 000170,000 shares of common stock currently outstanding. a. Calculate​ Everdeen's 2019 earnings per share​ (EPS). b. If the firm paid common stock dividends of $ 0.80$0.80 per​ share, how many...
Paul Company had 100,000 shares of common stock outstanding on January 1, 2018. On September 30,...
Paul Company had 100,000 shares of common stock outstanding on January 1, 2018. On September 30, 2018, Paul sold 45,000 shares of common stock for cash. Paul also had 8,500 shares of convertible preferred stock outstanding throughout 2018. The preferred stock is $100 par, 5%, and is convertible into 3 shares of common for each share of preferred. Paul also had 470, 7%, convertible bonds outstanding throughout 2018. Each $1,000 bond is convertible into 30 shares of common stock. The...
6. Earnings per Share with Convertible Bonds On January 1, 2019, Houston Company issued, at par,...
6. Earnings per Share with Convertible Bonds On January 1, 2019, Houston Company issued, at par, 600 $1,000 6% bonds. Each bond is convertible into 10 shares of common stock. Houston’s net income for 2019 was $600,000. The tax rate was 20%. Throughout 2019, 100,000 shares of $10 par common stock were outstanding. In addition, 1,000 shares of 5% $100 par cumulative preferred stock were outstanding. No preferred stock dividends were declared during 2019. None of the bonds were converted...
On 1 January 2019, ABB Limited had 1,200,000 ordinary shares outstanding. It also had 100,000 shares...
On 1 January 2019, ABB Limited had 1,200,000 ordinary shares outstanding. It also had 100,000 shares of 9%, $10 par, non-cumulative preference shares outstanding for the whole year of 2019. ABB Limited declared and paid preference share dividend in 2019. During 2019, the company had the following transactions: On 1 March 2019 the company issued 150,000 new shares for cash. On 1 October 2019 the company purchased 600,000 of its own outstanding shares. Net income for 2019 was $240,000. Required:...
EPS Junkyard Arts, Inc., had earnings of $321,800 for the year. The company had 39,000 shares...
EPS Junkyard Arts, Inc., had earnings of $321,800 for the year. The company had 39,000 shares of common stock outstanding during the year and issued 2,200 shares of $50 par value preferred stock. The preferred stock has a dividend of $8 per share. There were no transactions in either common or preferred stock during the year. Determine the basic earnings per share for Junkyard Arts for the year. Round answer to two decimal places. $__________ per share
7. Earnings per Share with Options Kearney Company’s net income for 2019 was $600,000. The tax...
7. Earnings per Share with Options Kearney Company’s net income for 2019 was $600,000. The tax rate was 20%. The only potentially dilutive securities outstanding were 900 options issued during 2018. Each option can be exercised for one share of common stock at $20 per share. None has been exercised, and 100,000 shares of common stock were outstanding during 2019. In addition, 2,000 shares of 6% $100 par non-cumulative preferred stock were outstanding. Kearney’s Board of Directors declares total dividends...
3. Jet Corporation had the following balances in its stockholders' equity accounts at December 31, 2019:...
3. Jet Corporation had the following balances in its stockholders' equity accounts at December 31, 2019: Common Stock $5 par, 900,000 shares authorized, 80,000 shares issued, 75,000 shares outstanding $400,000 Paid-in Capital in Excess of Par, Common Stock 1,600,000 Retained Earnings 900,000 Treasury Stock, 5,000 shares (125,000) Total stockholders’ equity $2,775,000 The following transactions occurred during 2020: January 2 Issued 20,000 shares of common stock for $20 per share. May 10 Declared dividends at $0.75 per share. June 10 paid...
Statement of Shareholders' Equity On January 1, 2019, Osgood Film Studios reported the following alphabetical list...
Statement of Shareholders' Equity On January 1, 2019, Osgood Film Studios reported the following alphabetical list of shareholders' equity items: Additional paid-in capital on common stock $171,700 Additional paid-in capital on preferred stock 17,800 Common stock, $2 par 80,800 Preferred stock, $100 par 89,000 Retained earnings 200,000 During 2019, the company sold 3,200 shares of common stock for $10 per share and 250 shares of preferred stock for $123 per share. It also earned income of $96,000 and paid dividends...
Paul Company had 100,000 shares of common stock outstanding on January 1, 2021. On September 30,...
Paul Company had 100,000 shares of common stock outstanding on January 1, 2021. On September 30, 2021, Paul sold 58,000 shares of common stock for cash. Paul also had 15,000 shares of convertible preferred stock outstanding throughout 2021. The preferred stock is $100 par, 7%, and is convertible into 3 shares of common for each share of preferred. Paul also had 600, 9%, convertible bonds outstanding throughout 2021. Each $1,000 bond is convertible into 30 shares of common stock. The...
Computing EPS: Convertible Preferred with Partial Conversion Bridgeman Company, headquartered in San Francisco, reported the following...
Computing EPS: Convertible Preferred with Partial Conversion Bridgeman Company, headquartered in San Francisco, reported the following data for the current year. Net income, $2,220,000. Common shares outstanding at the beginning of the year, 800,000. Nonconvertible cumulative preferred stock, $100 par, $8 dividend per share per year, 100,000 shares outstanding all year. Issued 200,000 shares of common stock on October 1. Convertible cumulative preferred stock, $100 par, $7 dividend per share per year, 50,000 shares outstanding at the beginning of the...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT