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Olegator [25]
1 year ago
12

Jasper industrial has no debt outstanding and a total market value of $216,000. earnings before interest and taxes, ebit, are pr

ojected to be $15,000 if economic conditions are normal. if there is strong expansion in the economy, then ebit will be 12 percent higher. if there is a recession, then ebit will be 15 percent lower. there are currently 8,600 shares outstanding. ignore taxes. what is the percentage change in eps when a normal economy slips into recession
Business
1 answer:
hodyreva [135]1 year ago
8 0

What is the percentage change in EPS when a normal economy slips into recession -15.0 percent

Under Normal Economic Conditions :

EPS = EBIT/shares outstanding = $216000/8600 = $25.11

Under Expansionary Times:

EPS = [EBIT x 1.60]/shares outstanding = $216,000(1.3)/8600

$280800/8600 = $32.65

Under a Recession:

EPS = [EBIT x (1-.12)]/shares outstanding =$216,000(.15)/8600

$324000/8600 = $37.67

% Δ EPS going from Normal  Expansion:

($32.65 - $37.67)/$37.67 = .15 or 15%

% Δ EPS going from Normal  Recession:

($32.65 - $37.67)/$37.67 = -.15 or -15%

About EBIT :

Earnings before interest and taxes (EBIT) is an indicator of a company's profitability. EBIT can be calculated as revenue minus expenses excluding tax and interest. EBIT is also referred to as operating earnings, operating profit, and profit before interest and taxes.

Learn more about EBIT :

brainly.com/question/14565042

#SPJ4

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Software Riverside Company issued long-term debt of 410 paid dividends of 20 and issued capital stock of 100. Cash flow from fin
Mazyrski [523]

Answer:

Cash flow from from financing activities = $490

Explanation:

<em>The cash flow from financing activities includes that entails any or a combination of the following; issuance and redemption of stocks , issuance and redemption of debts and payment of interest and/or dividend, and receipt of dividend and or interest.  </em>

Cash flow                                    $

issue of long term debt           410

Cash dividend paid                  (20)

Capital stock issued                  <u>100 </u>

Net cash from financing activ.  <u>490</u>

Cash flow from from financing activities = $490

8 0
3 years ago
If the exchange rate for Canadian and U.S. dollars is 0.92777 to 1, this implies that 13 Canadian dollars will buy ____ worth of
Mazyrski [523]

Answer:

U.S. dollars = 14.012 U.S. dollars

Explanation:

Below is the exchange rate:

0.92777 Canadian dollars = 1 U.S dollars

Thus to find the amount of U.S. dollars bought from the 13 Canadian dollars, just divide the 13 Canadian dollars from 0.92777. Therefore the resulting answer will be the U.S. dollars.

U.S. dollars = 13 / 0.92777

U.S. dollars = 14.012 U.S. dollars

8 0
3 years ago
_____ uses an iterative process that repeats the design, development, and testing steps as needed, based on feedback from users.
Alecsey [184]

Answer: Rapid Application Development (RAD)

Explanation:

Rapid Application Development (RAD) is a method of developing software that tries more to develop a working model first and then adjusts as it receives feedback from users. It essentially is evolving every time because instead of planning for what is needed ahead of time, it simply makes a product and changes it as needed to fit the actual needs of the customers.

5 0
3 years ago
To barter means to____?<br><br> 1. create.<br> 2. trade.<br> 3. earn.
kicyunya [14]
The correct answer is exchange or trade
7 0
3 years ago
Read 2 more answers
1. Descriptive research is conducted for all of the following reasons except ________. a. to describe the characteristics of rel
Softa [21]

Answer: c. To understand which variables are the cause and which variables are the effect of a phenomenon

Explanation:

The options include:

a. To describe the characteristics of relevant groups, such as consumers, salespeople, organizations, or market areas

b. to determine the degree to which marketing variables are associated

c. to understand which variables are the cause and which variables are the effect of a phenomenon

d. to determine the perceptions of product.

Descriptive research simply refers to a research type that is used in the description of a population that the researcher is studying.

It simply answers questions such as when, what or how in the research. The subject of the research is being described here.

From the options given, we should note that the descriptive research isn't conducted to understand which variables are the cause and which variables are the effect of a phenomenon.

5 0
2 years ago
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