Answer:
The correct answer is B. Decrease and transfer payments increase.
Explanation:
Automatic stabilizers soften cyclic fluctuations through their effect on aggregate demand. Indeed, when the economy is in a contractive or recessive phase, the negative or very reduced economic growth generates a decrease in fiscal revenues while higher unemployment increases public expenditures. Consequently, private sector disposable income decreases less than GDP does, thus limiting the contractual effect on aggregate demand, growth and employment. Therefore, the budget balance worsens in this phase by stimulating the economy and facilitating economic recovery. In the opposite sense, in times of expansion, automatic stabilizers generate higher public revenues and lower spending, which allows to increase the public surplus - or reduce the deficit - avoiding excessive expansion that could have negative effects on cycle volatility and price stability.
Party A has agreed to exchange $1 million U.S. dollars for1.21 million Canadian dollars. This agreement is called a swap.
<h3>
What is swap?</h3>
An agreement for a financial exchange known as a "swap" calls for one of the two parties to commit to making a given number of payments at a specified frequency in exchange for the other party making a different set of payments. These flows often react to interest payments based on the swap's nominal amount.
<h3>
What is the advantage of swap contract?</h3>
Through the use of swap, one can gain access to new financial markets for funding by analyzing the comparative advantage that the other party has in that market. As a result, exchange fully utilizes the comparative advantage that parties possess. As a result, money can be collected at a lower cost from the best source available.
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Answer:
a) c. $4.34
b) b. $4.10
Explanation:
a) Find Farewell's diluted earnings per share for 2021.
Use the formula below:
Diluted EPS = (Net income after tax - preferred dividend) / diluted common stock
Diluted EPS = $4.34 per share
b) stock options = 5,000
Value in current shares = 500,000/12 = $4,167
Diluted shares = 5000 - 4167 = 833
Use the formula below to find the diluted earnings per share:
Diluted EPS = Net income/share outstanding
Diluted EPS = $4.10 per share
Interest on purchase consideration, the salary of partners, and interest on vendor capital are to be charged during the pre-incorporation period.
