Answer:
Earnings per share (EPS) = (net income - preferred dividends) / average number of outstanding shares
EPS for all equity plan:
($80,000 x 60%) / 18,000 = $2.67 per share
EPS for Plan I:
[($80,000 - $5,000) x 60%] / 12,000 = $3.75 per share
EPS for Plan II:
[($80,000 - $7,750) x 60%] / 8,700 = $4.98 per share
What is one benefit to fostering competition in an economic system? It gives consumers more choices in the quality and price for things they want to buy. It causes higher prices, so businesses make a higher amount of profits
Answer:
The solution to the given problem is done below.
Explanation:
(a) How much peanut butter and jelly will David buy with his $3 allowance in a week?
According to the given problem, David likes 2 ounces of peanut butter for every 1 ounce of jelly,
2Pb = J and the budget constraint is .05pb+.1j = 3.
By using substitution.
David will buy Pb = 30 ounces, J = 15 ounces.
30(0.05) + 15 (0.10) = 3
(b) Suppose the price of jelly were to rise to $0.15 an ounce. How much of each commodity would be bought?
If pj = $0.15,
24(0.05) + 12(0.15) = 3
Substitution now yields J = 12 ounces, Pb = 24 ounces.
Answer:
The dimension that will minimize the cost is 55 and 110(55 × 110)
Explanation:
The garden area is 6050 ft². Along the driveway the costs is $6 per foot while the other 3 area sides cost only $2 per foot.
The garden has four sides so it a rectangle .
a = length along the driveway
b = length perpendicular to the driveway
The area = a × b
ab = 6050
b = 6050/a
minimize cost = 6a + 2a + 2b + 2b
minimize cost = 8a + 4b
cost = 8a + 4b
y = 8a + 4(6050/a)
y = 8a + 24200/a
y = 8a + 24200/a
differentiate the rate of change of the cost with respect to length.
y'(a) = 8 - 24200/a²
(8a² - 24200)/a² = 0
cross multiply
8a² = 24200
a² = 24200/8
a² = 3025
a = √3025
a = 55
inserting the value of a in the area formula
ab = 6050
b = 6050/55
b = 110
Answer:
Since Karen is a minor, she can receive up to $950 in unearned income per year without paying taxes or having to file a tax return.
Since she receives a larger amount $2,500 - $950 = $1,550, she must pay taxes for the extra amount depending on which type of account her parents opened for her.
- Karen's parents probably opened a 529 Education Savings Plan, and if that is the case, she doesn't need to pay any federal taxes.
- If Karen's parents opened her a custodial account, then she will have to pay taxes for the $1,550 above the $950 threshold. Minors are responsible for filing their own taxes or their parents can file taxes for them. If either Karen or her parents pay taxes, they should pay = $1,550 x 10% = $155
