Answer:
The earnings per share for 2016 are $5.45 per share while the earnings per share for 2015 were $5.60 per share.
The earnings per share has fallen in 2016 as compared to 2015, thus there is an unfavorable trend.
Explanation:
Earning per share (EPS) is the amount of net income allocable to each share of common stock outstanding. It is a useful measure for investors as it tells them how much $ return a business in earning on every share of common stock. The earnings per share is calculated as follows,
Earnings per share = (Net Income - Preferred dividends) / Weighted average shares on common stock outstanding
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<u>The earnings per share for Dovetail is</u>
2015 EPS = (376000 - 40000) / 60000 = $5.60 per share
2016 EPS = (448750 - 40000) 75000 = $5.45 per share
Answer:
A) loses some of the benefits of market efficiency.
Explanation:
Taxes always result in deadweight losses. Deadweight loss refers to allocative inefficiencies resulting from an alteration in the equilibrium quantities and economic surplus.
Taxes always increase the price of goods or services, and that increase reduces the equilibrium quantity, therefore resulting in lower economic surplus (lower consumer surplus and lower supplier surplus). The price of a good or service is higher, decreasing the quantity demanded, but the net amount received by the supplier is lower, decreasing the quantity supplied.
Answer:
a. 339 brackets
b. 169.5 and $296.63
c. 12 and $300
d. $596.63
e. 4 days
f. 40 brackets
Explanation:
Economic Order Quantity is the Order size that minimizes holding costs and ordering cost of inventory.
Economic Order Quantity = √ 2 × Annual Demand × Ordering Cost / (Holding Cost per unit)
= √(2 × 4,000 × $25.00) / $1.75
= 339 brackets
Average Inventory = Economic Order Quantity ÷ 2
= 339 ÷ 2
= 169.5
Annual inventory holding cost = Average Inventory × Holding Cost per unit per year
= 169.5 × $1.75
= $296.63
Orders to make each year = Total Annual Demand ÷ Economic Order Quantity
= 4,000 ÷ 339 brackets
= 11.7994 or 12
Annual order cost = Number of Orders × Cost per Order
= 12 × $25.00
= $300
Total Annual Cost = Annual inventory holding cost + Annual order cost
= $296.63 + $300
= $596.63
Reorder point (ROP) = Lead time × usage per day
= 4 × ( 2,500 / 250)
= 40 brackets
Answer:
rs=14.68%
F=15%
re=16.56%
Explanation:
using the constant growth model:
where P0 is the current stock price
D1 is the dividend expected at the end of the 1st year
rs is cost of retained earnings.
Rearranging to make rs subject of the formula:
if Evanec issues new stock, they will only net $31.45 down from $37 per share due to floatation costs. The difference, ie $37-$31.45 = $5.55 is due to floation costs.
The percentage floatation costs (F) are 
alternatively, one can recognise that 
and F = 15%
Cost of new common stock re is calculated as follows:
<span>If some activity creates positive externalities as well as private benefits, then economic theory suggests that the activity ought to be: </span>subsidized
