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NEW QUESTION: 1
The Gaffe Company had net income of $1,500,000. Gaffe paid preferred dividends of $5 on each of the 100,000 preferred shares. Each preferred share is convertible into 20 common shares. There are 1 million Gaffe common shares outstanding. In addition to the common and preferred stock, Gaffe has $25 million of 4 percent bonds outstanding. If Gaffe's tax rate is 40 percent, what is its diluted earnings per share?
A. $1.00.
B. $0.33.
C. $0.50
Answer: C
Explanation:
Earnings available to common shares is net income available to common ($1 million) plus the preferred dividends ($500,000). The preferred shares are convertible into 100,000 x 20 = 2 million common shares.

NEW QUESTION: 2
Smith, the project manager for a larger multi-location firm, is leading a software project team that has 18 members, 5 of which are assigned to testing. Due to recent recommendations by an organizational quality audit team, the project manager is convinced to add a quality professional to lead to test team at additional cost to the project.
The project manager is aware of the importance of communication for the success of the project and takes the step of introducing additional communication channels, making it more complex, in order to assure quality levels of the project. What will be the first project management document that Smith should change in order to accommodate additional communication channels?
A. Risk management plan
B. WBS document
C. Change control document
D. Scope statement
Answer: B


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