Allen Lumber Company had earnings after taxes of $600,000 in the year 2021 with 200,000 shares outstanding. On October 1, 2022,the firm issued 40,000 new shares. The company took the proceeds from these new shares as well as other operatingimprovements and earnings after taxes improved by 20% in 2022.Calculate Earnings per share for the year 2022. [Show detailed calculation with the formula to get proper credit]

Earnings per share or EPS is an indicator of a company's profitability. The higher the EPS , the…

Answered: Allen Lumber Company had earnings after…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

See similar textbooks

Similar questions

Subject: accounting if erin company had net income of 300,000 in 2024 and it experienced a 24.5%increse in net income for 2025 what is its net income for 2025?
Abbreviated financial statements for Archimedes Levers are shown in the table below. Assume sales and expenses increase by 13% in 2022 and all assets and liabilities increase correspondingly. Income Statement Sales Costs, including interest Net income $ 6,800 4,900 $ 1,900 2021 Balance Sheet, Year-End 2020 Net assets $ 5,916 $ 5,500 Total $ 5,916 $ 5,500 Debt Equity Total 2021 $ 2,516 3,400 $ 5,916 2020 $ 2,433 3,067 $ 5,500 a. If the payout ratio is set at 60% and no external debt or equity is to be issued, what is the maximum possible growth rate for Archimedes? b. If the payout ratio is set at 60% and the firm maintains a fixed debt ratio but issues no equity, what is the maximum possible growth rate for Archimedes? Note: For all requirements, do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. a. Maximum possible growth rate b. Maximum possible growth rate % %
Abbreviated financial statements for Archimedes Levers are shown in the table below. Assume sales and expenses increase by 14% in 2022 and all assets and liabilities increase correspondingly. Income Statement Sales Costs, including interest Net income Net assets Total $ 4,800 3,900 $ 900 Balance Sheet, Year-End 2021 2020 $ 3,936 $3,500 $ 3,936 $3,500 Debt Equity Total 2021 $ 1,536 2,400 $ 3,936 2020 $1,433 2,067 $3,500 a. If the payout ratio is set at 50% and no external debt or equity is to be issued, what is the maximum possible growth rate for Archimedes? b. If the payout ratio is set at 50% and the firm aintains a fixed debt ratio but issues no equity, what is the maximum possible growth rate for Archimedes? Note: For all requirements, do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.
PROBLEM D FINALE INC. operates a service business. Total equity amounted to P6,000,000 at the end of 2020. Based on its 2021 accounting records, FINALE's equity at the end of the year amounted to P10,000,000. Withdrawals equaled 15% of the increase in capital. Investments amounted to 30% of ending equity. Mark-up based on sales is 25%. Tax rate is equal to 20%. A breakdown of business expenses showed the following: general and administrative expense - 1,175,000; selling expense - 725,000; loss on sale of machinery - 25,000; interest income - 15,000; gain on sale of land - 75,000; Interest expense - 20,00o. Identify the required below. Question 38 Net Income After Tax Blank 1 Blank 1 Add your answer
Keokuk Corp. had the following operating results for 2021 & 2020. Keokuk paid dividends of $100,000 per year for both years and made capital expenditures of $45,000 in both years. The company's stock price in 2021 was $12.00 and $10.00 in 2020. In 2021, the industry average earnings multiple was 10, the free cash flow multiple was 20 and sales multiple was 2.00. Thecompany is publicly owned and has 1,050,000 shares of outstanding stock at the end of 2021. A. Calculate the 2021 market value of the company. B. Compare Keokuk’s Equity Book Value to the Market Value. Discuss conceptually (not differences in the numerical calculations) the difference between these two amounts.
Calculate the earnings per share (average of 420,000 shares outstanding for the year) for 2020. (Round answer to 2 decimal places, e.g. 2.55.) Earning per share $enter the earning per share in dollars rounded to 2 decimal places per share Matthias Medical manufactures hospital beds and other institutional furniture. The company’s comparative balance sheet and income statement for 2019 and 2020 follow. Matthias MedicalComparative Balance SheetAs of December 31 2020 2019 Assets Current assets Cash $397,220 $417,400 Accounts receivable, net 906,800 776,400 Inventory 743,000 681,000 Other current assets 381,300 247,000 Total current assets 2,428,320 2,121,800 Property, plant, & equipment, net 8,678,000 8,440,100 Total assets $11,106,320 $10,561,900 Liabilities and Stockholders’ Equity Current liabilities $2,934,700…
Please help me to solve this question
Calculate the dividend payout ratio for Jensen Limited for both its 2022 and 2023 financial years:
The 2020 balance sheet of Osaka’s Tennis Shop, Incorporated, showed long-term debt of $2.25 million, and the 2021 balance sheet showed long-term debt of $2.66 million. The 2021 income statement showed an interest expense of $305,000. During 2021, Osaka’s Tennis Shop, Incorporated, realized the following: Cash flow to creditors –$ 105,000 Cash flow to stockholders $ 209,000 Suppose you also know that the firm’s net capital spending for 2021 was $1.5 million and that the firm reduced its net working capital investment by $55,000. What was the firm’s 2021 operating cash flow, or OCF?
A trucking company is required to determine the cost of capital for its common shares. The company expects to pay a dividend of $ 1.45 by the end of the year (2021). The following table shows the dividends for the last 5 years. Year Dividend2020 $ 1.32019 1.22018 1.1 2017 1 2016 0.98 2015 0.90 After administrative costs, the company expects to earn $ 25 per share from a new issue and has a 15% market rate. a) Determine the growth rate of dividends from 2016 to 2020. (g =?) b) Determine the value or price of the shares
The Harrison Bicycle Company had the following operating results for 2021-2022. In addition, the company paid dividends in both 2021 and 2022 of $80,000 per year and made capital expenditures in both years of $230,000 per year. The company's stock price in 2021 was $14.20 and $12.50 in 2022. Also in 2022, the industry average earnings multiple for the bicycle industry was 8 and the free cash flow and sales multiples were 16 and 1.35, respectively. The company is publicly owned and has 1,400,000 shares of outstanding stock at the end of 2022. Balance Sheet, December 31, 2022 2021 Cash $ 267,000 $ 100,000 Accounts Receivable $ 525,000 $ 400,000 Inventory $ 450,000 $ 300,000 Total Current Assets $ 1,242,000 $ 800,000 Long-lived Assets 1,205,000 1,100,000 Total Assets $ 2,447,000 $ 1,900,000 Current Liabilities $ 500,000 $ 300,000 Long-term Debt 600,000 500,000 Shareholder Equity 1,347,000 1,100,000 Total Debt and Equity $ 2,447,000 $ 1,900,000 Income…

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS