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Given the results of the previous income statement calculations, complete the following statements: In Year 2, if Blue Hamster has 10,000 shares of preferred stock
Given the results of the previous income statement calculations, complete the following statements:
In Year 2, if Blue Hamster has 10,000 shares of preferred stock issued and outstanding, then each preferred share should expect to receive ($30, $22.50, $37.50, $15) in annual dividends. | |
If Blue Hamster has 200,000 shares of common stock issued and outstanding, then the firms earnings per share (EPS) is expected to change from ($27.90, $31, $16.24, $15.99) in Year 1 to ($20.27, $33.79, $39.75, $19.52) in Year 2. | |
Blue Hamsters earnings before interest, taxes, depreciation and amortization (EBITDA) value changed from ($7,000,000, $9,458,000, $19,200,000, $8,432,000) in Year 1 to ($26,192,500, $20,304,500, $8,750,000, $12,004,500) in Year 2. | |
It is (incorrect/correct) to say that Blue Hamsters net inflows and outflows of cash at the end of Years 1 and 2 are equal to the companys annual contribution to retained earnings, $2,361,000 and $2,890,875, respectively. This is because (all/all but one) of the items reported in the income statement involve payments and receipts of cash. |
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