Glo-Bus Quiz 2 Answers

Written by Dave Mar

I’ve lead close to 100 teams to success using strategies and tactics that I discovered which put me first in the nation!

December 30, 2015

Glo-Bus Quiz 2 is an exceptionally challenging quiz unless you have a firm grasp of all of the formulas and how they interact in the game itself.

Here is an example question.

If a company earns net income of $35 million in Year 8, has 10 million shares of stock, pays a dividend of $1.50 per share, and has annual interest costs of $15 million, then

the company’s retained earnings for Year 8 would be $35 million. 

Incorrect as retained earnings is after the share and the interest costs are paid out.

the company’s retained earnings for Year 8 would be $5 million (net income of $35 million less dividend payments of $15 million less $15 million in interest payments) and its Year 8 EPS would be $0.50.

Incorrect as annual interests costs are taken into account for the net profit calculation.

the company’s earnings per share would equal $2.00 (net income of $35 million less dividend payments of $15 million = $20 million divided by 10 million shares).

EPS is calculated before dividends are paid out.

the company would have Year 8 EPS of $3.50 and Year 9 retained earnings of $10 million.

This is partially true as EPS is $3.50. That’s a solid number. However, retained earnings is not $10 million.

the company would have EPS of $3.50 for Year 8 and also its retained earnings for Year 8 would be $20 million

(net income of $35 million less dividend payments of $15 million).

For further help on Glo-Bus Quiz 2, please email me.

You May Also Like…

Glo-bus Quiz 1 Answers

Glo-bus Quiz 1 Answers

Glo-bus Quiz 1 Answers Most students who play the Glo-Bus Simulation will write Glo-Bus Quiz 1. Glo-Bus Quiz 1 is not...

6 Comments

  1. Patsy

    Hello
    I need help with globus quiz 2

    Reply
    • Glo-Bus Grand Master

      Please send me a message through my site. My email is shown on my home page as support(AT)globussimulation.com

      Reply
  2. Hsm

    Hey,

    Can you help me with quiz 2? Do you have more sample questions with solutions for quiz 2?

    Thanks

    Reply
    • Glo-Bus Grand Master

      Please send me a message through my site. My email is shown on my home page as support(AT)globussimulation.com

      Reply
  3. AS

    Hey,

    Can you give me tips on quiz 2?

    Thanks

    Reply
    • Glo-Bus Grand Master

      Please send me a message through my site. My email is shown on my home page as support(AT)globussimulation.com

      Reply

Submit a Comment

Your email address will not be published. Required fields are marked *