Answer:
the price increases
Explanation:
its inflation due to the decrease in production of the the product but not the need for it the price will rise.
Answer:
The $12 million is the net increase in the denominator of the EPS fraction if the market price of the common shares averages $5 per share during 2018.
Explanation:
1. The journal entry is shown below:
For December 31, 2017:
Compensation Expenses A/c Dr ($18 million × $5 per share) ÷ 3 = $30 million
To Restricted Shares $30 million
(Being compensation expenses recorded for 2017 year)
For December 31, 2018:
Compensation Expenses A/c Dr ($18 million × $5 per share) ÷ 3 = $30 million
To Restricted Shares $30 million
(Being compensation expenses recorded for 2018 year)
2. The net increase in the denominator of the EPS fraction for 2018 year is shown below:
= 2018 shares - Restricted shares
= $30 million - $18 million
= $12 million
Hence, the $12 million is the net increase in the denominator of the EPS fraction if the market price of the common shares averages $5 per share during 2018
The statements that explain how the accounting equation applies to business are:
- The equation reflects that the total of what a business owns at any point in time will equal the total of what it owes creditors and owners.
- The equation applies to all monetary business transactions.
- The relation of assets, liabilities and equity is reflected in the equation.
- The equation states that Assets = Liabilities +Equity
<h3>How does the accounting equation apply in business?</h3>
The accounting equation is given as:
Assets = Equity + Liability
This shows that everything that a business owns (assets) is only acquired thanks to the amounts that the owners ( equity) and creditors (liability) give.
It also shows how assets, liabilities and equity are related and therefore applies to all the monetary transactions in the business as it shows how the cash is affected when it is spent or received.
Find out more on the accounting equation at brainly.com/question/24401217
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Answer: Stock B
Explanation:
Use CAPM to calculate the required returns of both stocks.
Stock A
Required return = Risk free rate + beta * ( Market return - risk free rate)
= 5% + 1.20 * (9% - 5%)
= 9.8%
Stock B
Required return = 5% + 1.8 * (9% - 5%)
= 12.2%
Both of them have Expected returns that are higher than their Required returns so both of them are good buys.
The better buy would be the one that has more expected value excess over required return.
Stock A excess = 10% - 9.8% = 0.2%
Stock B excess = 14% - 12.2% = 1.8%
<em>Stock B offers a higher excess and is the better buy. </em>
Answer:174 SE Naranja Ave, Port Saint Lucie, FL ; 38 Maple St, Fitchburg, MA ; 461 SE Thornhill Dr, Port Saint Lucie, FL
Explanation:
