Answer:
Earning per share = 2.166
Price earning = 10.15
Times interest earned = 5.4
Explanation:
Common stock outstanding at end = Shares outstanding (open) +Shares issued.
= 50000+10000= 60000 outstanding shares (at end)
a.)we know that earning per share =<u> net income - preference dividend</u>
Common shares outstanding at end
= ( N#1) <u>135000 - 5000</u>
60000
= 2.166 earning per share
(N#1):To calculate net income we will need statement of changes in equity,Suppose par value of shares = $10,
we have Beginning equity + net income - Dividend = Equity (end)
Net Income = 600000+35000-500000
Net income = 135000
b.) Price earning = <u>Market value per share </u> = <u>22 </u> = 10.15
Earning per share 2.166
c.) Times interest earned =<u> Income before interest and taxes</u> or EBIT
Interest expense
EBIT = 135000
= 135000 / 25000 = 5.4 times
Answer:
<em>Frictional unemployment created by sectoral shifts </em>
Explanation:
Frictional unemployment <em>happens throughout a phase when employees are looking for new jobs or are transferring from old jobs to newer ones.</em>
It can even be defined as natural unemployment as it is not directly linked to factors that contribute to an economy that is performing poorly.
A new global trade agreement leads to higher demand for export-sector workers and lower demand for workers in import-competing sectors. Workers need time to change sectors, and sectoral shifts lead to frictional unemployment
Answer:
B) decrease taxes to increase consumer disposable income.
Explanation:
Recession can be defined as a period of economic meltdown, in which there's a general decline in all economic activities such as trade.
Fiscal policy in economics refers to the use of government expenditures (spending) and revenues (taxation) in order to influence macroeconomic conditions such as Aggregate Demand (AD), inflation, and employment within a country. Fiscal policy is in relation to the Keynesian macroeconomic theory by John Maynard Keynes.
A fiscal policy affects combined demand through changes in government policies, spending and taxation which eventually impacts employment and standard of living plus consumer spending and investment.
Furthermore, if during a severe recession, Congress passes legislation to cut taxes, this would be an example of an expansionary fiscal policy.
According to the Keynesian theory, government spending or expenditures should be increased and taxes should be lowered when faced with a recession, in order to create employment and boost the buying power of consumers
Hence, to combat a recession with discretionary fiscal policy, Congress and the president should decrease taxes to increase consumer disposable income.
When there is a shift in the supply and demand curve for goods and services
In the CORPORATION <span> form of ownership, the business itself pays income taxes.</span>
