Business, 21.12.2019 01:31 renaudciera

Abc declared and paid cash dividends to its common shareholders in january of the current year. the dividend: a. will be added to the numerator of the earnings per share fraction for the current year. b. will be added to the denominator of the earnings per share fraction for the current year. c. will be subtracted from the numerator of the earnings per share fraction for the current year. d. has no effect on the earnings per share for the coming year.

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Answer from: teddybear196510

D. Has no effect on the Earnings Per Share for the Coming Year

Explanation:

The cash dividend declared and paid by ABC in January of the Current year represent dividend declared from the profitability of the previous year and as such it will have no effect on the calcuation of Earnings Per Share of the coming year. EPS is a measure to calculate the level of profitability of a company.

The formula for EPS

= (Net Income-Preferred Dividend)/ Weighted Average Shares Outstanding

A cash dividend on common stock only affects the determination of the Total/Weighted Average Common Shares Outsanding which is the denominator of the Formula for calculating Earnings Per Share. It is also important to state that the cash dividend that will affect the Total Average Common Shares is the the dividend declared for that year and not the previous year. Hence, the dividend of the previous year paid in January cannot affect the calculation of EPS for the coming year.

Answer from: Quest

answer; /// the best answer to the above question is; the main economic goal that a society consider when deciding the best way to distribute its wealth is equity, this to ensure that all resources are equally distributed; ///(a) (economic equity)

Answer from: Quest

Secured loans are protected by collateral security. examples: title loans where the borrower uses the car title as collateral security interest rates are lower and repayments are longer therefore risk is low as a collateral security is given as guarantee to the bank in case of failure to pay the loanunsecured loans are not protected by collateral security but it is given on the creditworthiness of the borrower, trusting that she/he will pay on time. examples; payday loans is a short term loan where the borrower lends money from the bank and pays is back when the borrower receives his/her wages.interest rates are high and repayments are shorter. but the risk is high as no collateral security is given as a guarantee to the bank for payment of the loan

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Abc declared and paid cash dividends to its common shareholders in january of the current year. the...

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