Explain how earnings per share should be computed and how the information should be disclosed in the corporation's financial statements. Explain why the cost of capital for a firm is equal to the expected rate of return to the investors in the firm. ...
Dear IBM Investor: I am very pleased to report to you on a superb year for your company— a year of record revenue, profit, cash flow and earnings per share. It reflects the hard work of some of the world's brightest and most innovative women and men— the IBMers I'm proud to ...
When calculating a firm's cost of capital, why is there a cost associated with retained earnings? What is the difference between gross profit and net profit? Explain. How to calculate depreciation expense in financial statement? How is gross profit computed? Why is it such an important measure...
Colgate's basic earnings per share were $1.53. According to the Securities and Exchange Commission (SEC), these statements are “a set of stairs." The idea is to look at the revenue and cost one by one. First, we look at the revenue, then the costs. Costs, directly and indirectly, ...
The forward P/E ratio is simple to compute. Using the P/E ratio formula -- stock price divided by earnings per share -- the forward P/E ratio substitutes EPS from the trailing 12 months with the EPS projected for the company over the next fiscal year. Projected EPS numbers are provided...
How many quarters of covered FICA earnings do I need to be eligible for Social Security retirement benefits? How are my Social Security benefits computed? What is the impact of the annual Cost of Living Adjustment and future work on my monthly benefits?
How is gross profit computed? Why is it such an important measure of profitability? Why do net profit margin and turnover ratios vary as per different industries? A company paid operating expenses. How does this affect the company's assets? Do they increase, ...
Twitter Google Share on Facebook ER (redirected fromEarned runs) Dictionary Thesaurus AcronymDefinition EREmergency Room ERExtended-Release EREarned Runs(baseball; pitching) ERError EREntity Relationship EREnergy Research EREmployer(IRB) EREmergency Response ...
Net income is then used to calculate earnings per share (EPS) using the average shares outstanding, which are also listed on the income statement. EPS is calculated by dividing the net income figure by the number of weighted average shares outstanding. With 7.433 billion outstanding shares for M...
A weighted average is most often computed to equalize the frequency of the values in a data set. For example, a voter survey might gather enough responses to be considered statistically valid, but the 18-to-34 age group may have fewer respondents than other groups relative to their share of...