Calculating and Interpreting EPS Information Wells Fargo reports the following information in its 2015 Form 10-K. In millions 2015 2014 Wells Fargo net income $25,116 $25,279 Preferred stock dividends $1,646 $1,458 Common stock dividends $7,400 $6,908 Average common shares outstanding 5,136.5 5,237.2 Diluted average common shares outstanding 5,209.8 5,324.4 Determine Wells Fargo's basic EPS for fiscal 2015 and for fiscal 2014. Round answers to two decimal places.
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Final answer:
The basic Earnings Per Share (EPS) for Wells Fargo for 2015 is $4.57 and for 2014 is $4.54, calculated by subtracting preferred dividends from net income and dividing by average common shares.
Explanation:
The provided figures help us calculate the basic Earnings Per Share (EPS) for Wells Fargo for 2015 and 2014. EPS is computed by taking the net income, subtracting the preferred stock dividends, and then dividing by the average common shares outstanding.
For 2015, the calculation is as follows: ($25,116 million - $1,646 million) / 5,136.5 = $4.57 EPS.
Moreover, for 2014, we find: ($25,279 million - $1,458 million) / 5,237.2 = $4.54 EPS.
These EPS values help shareholders understand how much of a company's profit is attributable to each share of common stock.
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Related Questions
When meeting someone from a different culture it is more useful to focus on ________, or central tendencies and patterns within a culture which recognize that there are variations of beliefs, behavior and values within that culture.a. prototypeb. stereotypec. halo biasd. fundamental attribution error
Problem 15-11 The yield to maturity on 1-year zero-coupon bonds is currently 8.5%; the YTM on 2-year zeros is 9.5%. The Treasury plans to issue a 2-year maturity coupon bond, paying coupons once per year with a coupon rate of 11%. The face value of the bond is $100. a. At what price will the bond sell? (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. What will the yield to maturity on the bond be? (Do not round intermediate calculations. Round your answer to 3 decimal places.) c. If the expectations theory of the yield curve is correct, what is the market expectation of the price that the bond will sell for next year? (Do not round intermediate calculations. Round your answer to 2 decimal places.) d. Recalculate your answer to (c) if you believe in the liquidity preference theory and you believe that the liquidity premium is 1.5%. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
The following data (in millions) are taken from the financial statements of Tarrow Corporation: Recent Year Prior Year Revenue $386,972 $356,000 Operating expenses 326,634 303,000 Operating income $60,338 $53,000 a. For Tarrow Corporation, determine the amount of change in millions and the percent of change (round to one decimal place) from the prior year to the recent year for: Revenue Operating expenses Operating income Amount of Change (in millions) Percent of Change (round to 1 decimal place) Increase or Decrease 1. Revenue $fill in the blank 1 30,976 fill in the blank 2 % 2. Operating expenses fill in the blank 4 fill in the blank 5 3. Operating income fill in the blank 7 fill in the blank 8 b. During the recent year, revenue and operating expenses . As a result, operating income , from the prior year.
Blakely charges manufacturing overhead to products by using a predetermined application rate, computed on the basis of machine hours. The following data pertain to the current year: Budgeted manufacturing overhead: $480,000 Actual manufacturing overhead: $440,000 Budgeted machine hours: 20,000 Actual machine hours: 16,000 Overhead applied to production totaled:Select one:a. $352,000b. $384,000c. $550,000d. $600,000e. some other amount
Answers
Answer:
The options are
A) as small as possible; all
B) equal; all
C) equal; normal
D) maximized; all
The answer is B) equal; all
Ricky not being in a consumer equilibrium and he considering the prices prices of goods means he allocated all his income in such a way that entails his marginal utility per dollar spent is equal for all goods.
This is to ensure that he cuts cost and maximizes his spending power.
Answers
Answer:
EPS = $ 2.00
Explanation:
Earning per share: EBIT/outstanding shares
unlevered firm EPS:
oustanding shares: 10,000
Levered firm EPS:
(EBIT - interest)/outstanding shares
where:
Interest_ 50,000 x 5% = 5,000
Shares repurchase: 50,000 / 20 = 2,500
Outstanding shares: 10,000 - 2,500 = 7,500
EBIT/10,000 = (EBIT-5,000)/7,500
(0.75)EBIT = EBIT - 5,000
5,000 / (1-0.75) = EBIT
EBIT = 20,000
EPS: 20,000 / 10,000 = 2.00
Answers
Answer: closed shop
Explanation:
From the question, we are informed that in the late 1930s management at Atalanta Industries agreed to hire only those workers who were already members of the Electrical Union.
It should be noted that here, Atlanta agreed to a type of arrangement known as closed shop. This occurs when the workers have to belong to a particular union before they'll be employed. This was legal in 1930 but it was later declared illegal by Taft Hartley Act.
Answers
Answer: 125%
Explanation:
Manufacturing overhead = Predetermined overhead rate * Direct labor
Manufacturing Overhead
= Work in process balance - Direct labor - Direct materials
= 3,960 - 640 - 440 - 540 - 740
= $1,600
The rationale behind the above is that that the Work in process account is made up of Direct labor, material and overhead. The Overhead would therefore be the balance less the Direct material and labor.
Direct Labor = 540 + 740
= $1,280
Manufacturing overhead = Predetermined overhead rate * Direct labor
1,600 = Predetermined overhead rate * 1,280
Predetermined overhead rate = 1,600/1,280
= 1.25
= 125%
Answers
Answer:
$2536.232
Explanation:
The spread in this case is 30*8% = 2.4
A spread is simply gap between the bid and the ask prices of a security or asset, like a stock, bond or commodity and the net proceeds are the amount of money the seller receives following the sale of an asset after all costs and expenses are deducted from the gross proceeds.
The net proceeds in this case is 30-2.4 =27.6
To get the number of share we can simply divide the funds need by the net proceeds per share = 70000000/27.6 = $2536.232. Therefore the correct answer is $2536.232
Answers
Answer:
$24129.6
Explanation:
Calculation:
Equivalent units in ending work in process inventory for conversion = 33000+(12000*0.4) = 37800
Cost per equivalent unit (conversion) = 29000+161000/ (37800) = 5. 027
Total production cost of ending inventory = 24129.6
We calculate the equivalent units of production by adding the units transferred and completed, and the equivalent units in the ending inventory, so the equivalent units in ending work in process inventory for conversion becomes 37800.
Then we add the cost of beginning work-in-process for conversion and costs added during the production period for conversion and divide it by equivalent units in in ending work in process inventory for conversion.
After that, we get per unit cost which is then multiplied by the equivalent units in conversion to get total production costs.
Since, the all direct material costs are added in the beginning of the process,we don’t include in the other periods.