Apr 25, 2017 · If everything else is held constant, what will cause earnings per share to increase? The purchase of treasury stock The payment of a cash dividend to common stockholders The payment of a cash dividend to preferred stockholders The issuance of …
Dec 06, 2016 · With a smaller denominator, earnings per share is larger. If everything else is held constant, what will cause earnings per share to increase? The purchase of treasury stock The issuance of new shares common stock The payment of a cash dividend to preferred stockholders The payment of a cash dividend to common stockholders Correct!
All else held constant, the earnings per share will: decrease as the number of shares outstanding increase. ... An increase in which one of the following will cause the operating cash flow to increase for a profitable firm? depreciation. A firm starts its year with a positive net working capital. During the year, the firm acquires more short ...
With everything else held constant, if Stock A has a higher price than Stock B, then you can expect that: ... a change in is magnified into a relatively larger change in earnings per share (EPS). interest expense. Financial leverage affects , whereas operating leverage affects . ... Bankruptcy and agency costs cause the costs of debt and equity ...
Last year, Johnson Mills had annual revenue of $37,800, cost of goods sold of $23,200, and administrative expenses of $6,300. The firm paid $700 in dividends and had a tax rate of 35 percent. The firm added $2,810 to retained earnings.
Free cash flow is: cash that the firm can distribute to creditors and stockholders. The cash flow of the firm must be equal to: cash flow to stockholders plus cash flow to creditors. The statement of cash flows consists of the cash flows from: operations, investing activities, and financing activities.
On a balance sheet, deferred taxes are classified as: a long-term liability. Net working capital is defined as: current assets minus current liabilities. An asset that can be quickly converted into cash without significant loss in value is referred to as being: liquid.
According to generally accepted accounting principles (GAAP), revenue is recognized as income when: the transaction is complete and the goods or services are delivered. Cash flow from assets: can be positive, negative, or equal to zero. Net capital spending is equal to the: net change in fixed assets plus depreciation.
Product costs are the total production costs incurred during a period - raw materials, direct labor, and manufacturing overhead - and are reported as cost of goods sold. Period costs are costs - management and office salaries, office expenses, insurance - that are allocated to a time period and are recorded as selling, general, ...
the ending net working capital can be positive, negative, or equal to zero. The cash flow to creditors includes the firm's cash: outflow when interest is paid on outstanding debt. The cash flow to stockholders must be positive when: the cash flow from assets is positive and also exceeds the cash flow to creditors.