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Accounting | Accounting homework help

On January 1, 2018 , CDE corporation has 10,000 ordinary shares outstanding. It issued an additional 3,000 and 2,000 ordinary shares on May 1, 2018 and July 1, 2018, respectively. During 2018. it earned a profit of P72,000 and paid preference dividend of P12,000. Compute the basic earnings per share.

Summer Dahl Resorts’ common stock is currently trading at $40 a share. The stock is expected to pay a dividend of $2 a share at the end of the year, and the dividend is expected to grow at a constant rate of 8% a year.

What is the cost of common equity?


Fruitcakes’ price-to-book ratio is currently 8.5 times and the PE ratio is 17 times. If Fruitcakes’ common stock is currently selling at $20.50 per share, what are the book value per share and earnings per share?

a. $1.21, and $2.18, respectively

b. $2.41, and $1.21 respectively

c. $174.25, and $348.50, respectively

d. $348.50, and $174.25, respectively

Which of the following will increase a company’s earnings per share for the year?

A. Selling all the stock it held as treasury stock at the beginning of the year.

B. Issuing additional shares of stock during the year.

C. Issuing a stock dividend to shareholders.

D. Buying additional shares of treasury stock during the year.

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