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NEW QUESTION: 1
The following statements are about managed dental care. Three of these statements are true, and one is false. Select the answer choice containing the FALSE statement.
A. Dental HMOs typically need very few healthcare facilities because almost all dental services are delivered in an ambulatory care setting.
B. Processes for selecting dental care providers vary greatly according to state regulations on managed dental care networks and the health plan's standards.
C. Currently, there are no nationally recognized standards for quality in managed dental care.
D. Managed dental care is federally regulated.
NEW QUESTION: 2
An analyst has gathered the following information about Barnstabur, Inc. for the year 2001:
Reported net income of $30,000.
5,000 shares of common stock and 2,000 shares of 8 percent, $90 par preferred stock
outstanding during the whole year.
During 2000, Barnstabur issued at par, $60,000 of par, 6.0 percent convertible bonds, with each
of the 60 bonds convertible into 110 shares of the Barnstabur common stock.
If Barnstabur's effective tax rate is 40 percent what will Barnstabur report for 2001's diluted earnings per share (EPS)?
diluted EPS = adjusted earnings after conversion (EAC) / weighted average plus potential common shares outstanding.
Step 1: Calculate Adjusted EAC preferred dividends = convertible preferred dividends = (0.08)(90)(2,000)
= 14,400 convertible debt interest = (60,000)(0.06)(1 - 0.40) = 2,160 adjusted EAC = (30,000 - 14,400 +
2 ,160) = $17,760
Step 2: Calculate Weighted average plus potential common shares outstanding. Step 3: Calculate Diluted
EPS Diluted EPS = 17,760 / 11,600 = $1.53.
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