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3 years ago

All else equal, what is likely to happen to the unemployment rate during a recession?

1 answer:

6 0

When there is a recession, it is incredibly likely that the unemployment rate will rise in reference to the real gross domestic products going down. Unemployment will rise because in recession jobs become more scarce as products are not being purchased by consumers.

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On January 2, 2018, Bonita Industries issued at par $2020000 of 5% convertible bonds. Each $1000 bond is convertible into 10 sha

Kryger [21]

Answer:

Bonita’s diluted earnings per share for 2018 would be $3,80

Explanation:

Step 1 Calculate the Basic Earnings Per Share

Basic Earnings Per Share = Income Attributable to Common Stockholders / Weighted Average Number of Common Stocks

Income Attributable to Common Stockholders

Net income $902000

less Interest on bonds ($2020000×5%)×75% ($75,750)

Income Attributable to Common Stockholders $826,250

Basic Earnings Per Share =$826,250 / 197000

=$4,19

Step 1 Calculate the Diluted Earnings Per Share

Diluted Earnings Per Share =Adjusted Income Attributable to Common Stockholders / Adjusted Weighted Average Number of Common Stocks

Adjusted Income Attributable to Common Stockholders

Income Attributable to Common Stockholders $826,250

Add Interest on bonds ($2020000×5%)×75% ($75,750)

Income Attributable to Common Stockholders $826,250

Adjusted Weighted Average Number of Common Stocks

common stock outstanding 197000

add convertible bond ( $2020000/$1000×10 shares) 20200

Weighted Average Number of Common Stocks 217200

Diluted Earnings Per Share = $826,250/217200

= $3,80

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3 years ago

Based on the following cost data, what conclusions can you make about the costs of Product A and Product B?

Basile [38]

Answer:

The answer is D

Explanation:

Product A is a variable cost because variable cost(inputs) increases(decreases) with increase (decrease) units(output).

Whereas for product B;

Though, fixed cost is fixed across all units of output but as the total output increases, the average fixed cost decreases because the same amount of fixed costs now cover a larger number of output produced.

6 0

3 years ago

Sally opened her own business and resigned from a job paying $25,000 per year. Her savings acccount pays 8% interest, but she wi

DiKsa [7]

Answer:

A) They would be indifferent, as Sally's income net of costs equals $25,000.

Explanation:

Sally's economic profit = accounting profit - opportunity costs

accounting profit = $12,000
opportunity costs = $25,000 - $15,000 in lost salaries + $2,000 (lost investment revenue) = $12,000

economic profit = $12,000 - $12,000 = $0

Since the economic profit is $0, Sally should be indifferent between running her own business or working for someone else.

7 0

2 years ago

Compare the applications below: Candy Crush: Allows gamers to advance to the next level once a goal is met DuoLingo: Allows user

Murljashka [212]

Answer:

Explanation:

Candy Crush is a game app while Duolingo helps users learn a new language.
They both have different interfaces.

4 0

2 years ago

The Red Bud Co. pays a constant dividend of $2.00 a share. The company announced today that it will continue to do this for anot

kiruha [24]

Answer:

Share of this stock worth today if the required rate of return is 7.6 percent is $3.59

Explanation:

stock worth today = 2/1.076 + 2/1.076^2

stock worth today = $ 3.59

4 0

3 years ago