describe how earnings per share is calculated and calculate and interpret a company’s earnings per share (both basic and diluted earnings per share) for both simple and complex capital structures;

Q: What type of earnings per share presentation is requiredin a complex capital structure?

A: Earnings per share:Amount available as earnings for each of the common shares outstanding for a…

Q: Which of the following is ratios represents dividends per common share in relation to market price…

A: The ratio represents dividend per common share in relation to Market price per common share is as…

Q: Explain what is the capital structure of a company.

A: Company raise money by different means to finance growth and operations of company.Combinations of…

Q: Enterprise value (EV) is the total value of all company assets. Equity value (or market…

A: The enterprise value of a company denotes the value of the entire company to all its…

Q: What is a simple capital structure? How is EPS determined for a company with a simple capital…

A: A simple capital structure is a firm that has no outstanding securities that could potentially…

Q: What is the accounting treatment of the direct issue costs of shares of stocks? Debit to the…

A:

Q: Determination of capital structure of a company is influenced by a number of factors’ explain the…

A: Capital Structure:  the proportion of diverse sorts of securities of a firm raised for the purpose…

Q: • Analysis of the financial status of a company, using financial ratios (e.g., turnover ratios, book…

A: Financial status means Profit, loss, revenue, earning, available cash or cash flow. Financial status…

Q: What is the difference between earnings per share (EPS), funds from operations (FFO), adjusted funds…

A: Answer: Earnings per share: Earnings per share means the net income received by each member of the…

Q: How do I calculate the price / earnings ratio, earnings per common share, and dividend payout?

A: Price/ Earnings ratio: Price Earnings ratio is the ratio of firm’s present share price to its…

Q: Explain the relationship between a company’s growth possibilities and its dividend policy

A: There is a systematic and tangible relationship between a company’s growth possibilities and its…

Q: What is the value for 'Returned on Invested Capital' of the firm below (in the picture) based on the…

A: Please see the next step for the solution

Q: The relative proportion of debt, equity, and other securities that a firm has outstanding constitute…

A: Capital structure refers to the amount of money invested in a busines. this amount of money can be…

Q: Explain the difference between a simple and complex capital structure as the terms are used in the…

A: Earning per share is the number of earnings or profits available to each outstanding share of the…

Q: How does the return on common equity show the relationship between net income and the common…

A: The return on equity is the percentage earned on the equity investment made by the company. It shows…

Q: id-in-capital and retained earnings: Similar? Different? What are the main categories of paid-in…

A: It is usually split into two different line items: common stock (par value) and additional paid-in…

Q: Explain how to calculate earnings per share.

A: Earnings per share shows the profits available to each common stock shareholder after paying the…

Q: Capital structure of a company is more appropriately calculated using the: book value of debt and…

A: Capital structure of a company consists of debt, equity or any other source of finance used to…

Q: What are the major liquidity ratios and leverage ratios? Identify the stakeholders who are…

A: Ratio Analysis Company's liquidity, operational efficiency  and profitability  are  measured  using…

Q: how does cost of capital affects a firm's decision on the distribution of dividends?

A: Cost of capital is defined as an required return, which is important for making the capital…

Q: .Explain the importance of capital structure to a company

A: Capital structure means identifying the best mix of equity and debt in a company that maximizes the…

Q: Define earnings per share.

A: Ratio Analysis: This refers to the performance measurement of the business, in order to know the…

Q: Define the terms paid-in capital and retained earnings.

A: Paid in capital: Paid in capital represents the total amount invested by the shareholders of the…

Q: What are the cash flow effects when a company uses the equity method to record its proportionate…

A: The equity method of financing is the method through which a corporation records and reports its…

Q: what do you think is the significance of Earnings Per Share (EPS) especially in measuring the…

A: Earnings per share or EPS is an important financial measure, which indicates the profitability of a…

Q: Compare the effect of distribution of dividends and retained earnings  on the value of the firm.

A: A dividend is a profit distribution made by a firm to its shareholders. When a company makes a…

Q: Fundamental Analysis a. Price-to-Earnings Ratio b. Solvency Ratio c. Book Value Per Share d. Cash…

A: Technical analysis uses past movements of price and trends to predict the future movement. Hence,…

Q: Which one of the following is the ultimate objective of modern financial management for a…

A: objective of financial manager is to maximise shareholders value.

Q: how is an increase of share prices recorded on a company's income statement, balance sheet, and cash…

A: Answer: An increase in share prices will not have any monetary impact. It simply means that the no.…

Q: What does capital structure of a company means?

A: Capital structure of a company is the proportion of various long term sources of finance used to…

Q: The right side of the balance sheet shows the firm's liabilities and stockholders' equity. Which of…

A: The accounting  equation is Total assets = Total shareholders  equity  + Total liabilities

Q: What is the company's weighted average cost of capital?

A: Here, Debt (w2) = 23% Common stock (w1) = 77% Expected return on debt (before-tax) (Kd) = 5.3%…

Q: how a company can raise capital through the issuance of equities.

A: On the other hand, equity capital comes not through borrowing, but through the sale of shares of the…

Q: How much is the total Share Capital? How much is the total Additional Paid In Capital? How much is…

A: The additional paid in capital is the capital which has been paid by the shareholders to the company…

Q: You are trying to assess the well-being of the common stockholders of a company. Which of the…

A: Step 1 Accounting ratios, an important sub-set of financial ratios, are a group of metrics used to…

Q: Describe two factors to be considered when calculating the weighted average cost of capital (WACC)…

A: The WACC is the sum of the costs of different sources of finance weighted by the weight of those…

Q: It is the share of profits and retained earnings that a company pays out to its shareholders. * O…

A: Ordinary shares, preference shares and debt capital are three types of sources by which company can…

Q: Why is a company’s capital structure, as measured by debt and equity ratios, important to financial…

A:

Q: what are the similarities between paid-in-capital and retained earnings

A: The answer is as fallows

Q: Estimate the costs of different capital components—debt, preferred stock, retained earnings, and…

A: Debt is something that one party borrows from another, usually money. Debt is used to make large…

Q: Describe retained earnings and distinguish it from paid-in capital.

A: Stockholders’ equity: The claims of owners on a company’s resources, after the liabilities are paid…

Q: Which one of the following is the ultimate objective of modern financial management for a…

A: Modern financial management is referred as one of the function of an organization which is concerned…

Q: Evaluate the company’s solvency and capital structure using leverage ratios and interpret your…

A: Ratio Analysis - The ratio is the technique used by the prospective investor or an individual or…

Q: Briefly describe the ratios that can be used to evaluate a company’s stock as an investment.

A: