Smith Instruments Reported $6,000,000 in Net Income for the Current

question 80

Multiple Choice

Smith Instruments reported $6,000,000 in net income for the current year. The company had $500,000 of 10% cumulative, non-convertible preferred stock outstanding all year, and issued $5,000,000 of 6% convertible bonds on June 1. Each $1,000 bond is convertible into 40 shares of common stock. 400,000 common shares were outstanding all year. Determine the denominator for both basic and diluted EPS when the tax rate is 40%.

• A) basic EPS 400,000; diluted EPS 400,000 + (5,000 × 40) (5/12)
• B) basic EPS 400,000 (7/12); diluted EPS 400,000 + (5,000 × 40) (7/12)
• C) basic EPS 400,000; diluted EPS 400,000 + (5,000 × 40) (7/12)
• D) basic EPS 400,000 (5/12); diluted EPS [400,000 + (5,000 × 40)] (5/12)

Understand the role of references and how to present them.

Identify appropriate and professional contact details for a résumé.

Recognize the need for an adaptable résumé format based on the application method.

Understand the importance of an online presence and profile in job search.

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Definitions:

Executive Summary

A brief and concise overview of a longer document or presentation, highlighting the key points, conclusions, and recommendations.

Business Concept

An idea for a new business that includes basic information like the service or product, the target demographic, and a unique selling proposition.

Venture Capitalists

Investors who provide capital to startups and early-stage companies with high growth potential in exchange for equity.

Entrepreneurial Team

A group of individuals with diverse skills and roles who come together to found and build a startup or new venture.