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1 year ago

delta airlines and general motors both have profit-sharing arrangements with employees. what is a profit sharing plan?

Business

1 answer:

Greeley [361]1 year ago

6 0

An employee's profit share depends on the company's operating profit for the year.

<h3>What is a profit-sharing plan?</h3>

A profit sharing plan is a form of retirement plan where the employer contributes a percentage of the company's profits to employee retirement accounts. The contributions are usually determined by the company's profit margin and the number of years that each person has worked for the company. The sum of money that is added to the employee's account is typically decided by the employer and might range from a few percent to a set sum of money. The donations are typically placed in stocks, bonds, and mutual funds.

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Lamont Communications has amortized a patent on a straight-line basis since it was acquired in 2010 at a cost of $50 million. Du

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Answer:

C) Patent amortization expense of $5 million.

Explanation:

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The right option is C) Patent amortization expense of $5 million.

6 0

3 years ago

As the owner of a women's clothing store, Caroline Lipscomb has an income of $75,000. She pays $30,000 per year in taxes and ano

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Answer:

28,000

Explanation:

3 0

3 years ago

A company uses LIFO. At the beginning of the current year its inventory was $200,000, and at the end of the current year its inv

andriy [413]

Answer:

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Explanation:

given data

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end of the current year inventory = $250,000

start of the year LIFO reserve = $30000

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solution

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FIFO ending inventory = LIFO ending inventory + LIFO reserve ...............1

put her evalue we get

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7 0

3 years ago

Suppose that a firmâ€™s recent earnings per share and dividend per share are $2.50 and $1.50, respectively. Both are expected to

Elis [28]

Answer:

D0 1.50

D1 1.60

D2 1.78

D3 1.94

D4 2.12

D5 2.31

Price of the stock after 5-year $ 77

PV $ 81.75

Explanation:

Earning per share 2.5

Dividend per share 1.5

grow ratio 9%

P/E ratio 24

within 5 year is expected to fall to 20

We solve for the dividend by multiplying the dividends by the grow rate of 9%

We solve for the earning after 5 years:

$Principal \: (1+ r)^{time} = Amount$

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time 5.00

rate 0.09000

$2.5 \: (1+ 0.09)^{5} = Amount$

Amount 3.85

Then we multiply by 20 to get the value of the stock:

$ 3.85 x 20 = $ 77

We solve the horizon value:

$\frac{D_1}{r-g} = PV\\\frac{D_0(1+g)}{r-g} = PV\\$

$\frac{1.5(1+0.09)}{0.11 - 0.09} = PV\\$

PV $ 81.75

7 0

3 years ago