Purchase Solution

Net Income and EPS

Not what you're looking for?

Ask Custom Question

Quantum Technology had $640,000 of retained earnings on December 31, 2010. The company paid common dividends of $30,000 in 2010 and had retained earnings of $500,000 on December 31, 2009. How much did Quantum Technology earn during 2010 and what would earnings per share be if 40,000 shares of common stock outstanding?

Purchase this Solution
Solution Summary

The solution does a great job of answering the question. The solution is brief and concise and very easy to follow along. All the steps are clearly shown and Excel formulas are provided so that the student can answer similar questions in the future. It can be easily understood by anyone with a basic understanding of the topic. Overall, an excellent solution.

Solution Preview

First you need to calculate Net Income for 2010.

Beg. Retained Earnings + Net Income ...

Purchase this Solution
Free BrainMass Quizzes
Business Processes

This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.

Change and Resistance within Organizations

This quiz intended to help students understand change and resistance in organizations

Income Streams

In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.

Situational Leadership

This quiz will help you better understand Situational Leadership and its theories.

Basics of corporate finance

These questions will test you on your knowledge of finance.

View More Free Quizzes
Related BrainMass Solutions

  • New stock issue

    EPS = Net Income/Number of shares and so Net Income = EPS X Number of shares The rate of return = Net Income/Amount = 1,200,000/16,320,000= 7.35% The solution explains how to calculate the potential dilution, net proceeds and rate of return that must

  • New issue of stock

    The new issue will add 300,000 million additional shares and the total shares outstanding will go up to 1,050,000 and on the same net income, the EPS would be 3,000,000/1,050,000=$2.86.

  • Calculating EPS under different options

    income 19,800 14,400 9,000 EPS 0.99 0.72 0.45 EPS (Net Income/No. of sahres) 0.747 Standard deviation of EPS=0.189 Clearly Expected EPS is increased in

  • EPS before and after the stock dividend

    212132 Maxwell Electronics had net income of $15 million last year, and had 3 million common shares outstanding. They declared a 12% stock dividend. Calculate EPS before and after the stock dividend.

  • EBIT-EPS analysis

    We first calculate the EBIT where the EPS is the same. EPS = Net Income/Number of Shares = (EBIT-Interest)*(-tax rate)/Number of Shares. Option 1 - The number of shares are 3,000,000/40=75,000 and there is no interest.

  • Mize Co (Morton): Calculate Diluted Earnings Per Share

    the diluted EPS (assume bonds are converted into equity and recalculate the ner income) Net Income = $160000 Income before tax = 160000/(1-30%)=228571.43 Interest on convertible bonds = 9%*300000=27000 Income before tax and convertible interest =

  • Basic and Diluted EPS

    Stock Income before extraordinary item 112,000 Extraordinary income, net of tax 70,000 Net income 182,000 Basic EPS Common Stock Income before extraordinary item (112,000/100,00) = 1.12 Extraordinary income (70,000/100,000) = 0.70 Net Income

  • Financial ratios solving

    EPS = Net Income/Weighted Average common shares 47900/34000 = 1.40(rounded) Price Earnings = Price per share/EPS 16/1.40 = 11.4(rounded) Payout ratio = Dividend / Net income 32000/47900 = 0.668 or

  • Earnings Per Share: But Why Is EPS Different if Income Is th

    Last year, each company reported net income of $1 0 million and a return on ownersâ?¢investment of 17%; however,White reported EPS of $1.32,and Adam reported EPS of $2.75.

  • Earnings per share

    Year2 Net Income = 42,000 Preferred Dividend is 550,000X5%=27,500 Number of Shares outstanding = 38,000 EPS = (42,000-27,500)/38,000 = $0.38 The EPS has gone down in year 2 as compared to year 1 even though the net income has increased and the

View More Related Solutions