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Monica [59]
3 years ago
10

Ten years ago, Lucas Inc. earned $0.50 per share. Its earnings this year were $5.00. What was the growth rate in earnings per sh

are (EPS) over the 10-year period?
a. 19.42%
b. 25.89%
c. 29.78%
d. 21.75%
Business
1 answer:
Black_prince [1.1K]3 years ago
5 0

Answer:

<u></u>

  • <u>Option b. 25.89%</u>

Explanation:

The question requires to calculate the annual percentage growth rate assuming it was constant.

The final earnings are equal to the initial earnings multiplied by 1 + the growth rate, raised to the number of periods.

Here:

  • initial earnings = $0.50
  • final earnings = $5.00
  • number of periods = 10 years

Then, your equation is:

  • $5.00 = $0.50 (1 + rate)¹⁰

Solving, you get:

      (1+rate)^{10}=5/0.50\\\\(1+rate)^{10}=10\\\\(1+rate)=10^{(1/10)}\\\\1+rate=10^{0.1}\\\\1+rate=1.2589\\\\rate=1.2589-1\\\\rate=0.2589\\\\rate=25.89\%

Thus, the answer is the option b. 25.89%

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Match the following terms with their definitions. Salary, rewards, net pay, occupation, costs, benefit, deduction1. a fixed amou
Katena32 [7]

Answer:

1. A fixed amount of money periodically paid to a person for work – Salary

2. The price paid to acquire, produce, or accomplish something – costs

3. The portion of the wages that the employee actually gets to take home - net pay

4. Perks provided by your employer – benefit

5. Something that causes or increases personal satisfaction – rewards

6. An amount that is subtracted from your paycheck employee – deduction

7. A person's usual work or business; a way of earning a living - occupation

Explanation:

1. The salary is defined as the amount received by a person for work, this income does not include any extra benefit. to be considered as a salary it has to be paid periodically.

2. The cost is the expense caused for the production of a product, in the case of a service is the cost of offering it. includes direct and indirect labor force cost, amortized costs of the machinery and supplies (for products).

3. The net pay is the salary amount paid to an employee after the deduction of any amount legally recognized, it may include taxes and other items.

4. The benefits are extra gains that an employer may give to workers, different from the salary amount, it may include bonus or specific medical insurance advantages.

5. The rewards are non-usual prizes or recognitions received by people due to a personal or labor goal.

6. The deduction is al legal reduction done by a company in the payment of an employee.

7. The occupation is the activity that a person develops to obtain living resources, it can include personal business or employment.

4 0
3 years ago
Marco works in the marketing department of a luxury fashion brand. He is making a presentation on the success of a recent market
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The best answer for this question is: Marco can use the images option to include photographs and the video option to include footage of the fashion show.

These options would be the best for him in including the media that he wants to present in his Microsoft PowerPoint presentation. This is because he wants to show his audience his recent successful marketing campaign, which would be more effectively illustrated through the actual footage.

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Candlewood LLC started business on September 1, and it adopted a calendar tax year. During the year, Candlewood incurred $6,500
SpyIntel [72]

Answer:

deduction for organizational expenses = $5,000

Explanation:

Since the total startup costs are over $50,000 then the company's deduction will be lower. Generally speaking, a company can deduct up to $5,000 in organizational an startup costs ($5,000 each). But if the costs are over $50,000, then your deduction will be reduced by $1 for each dollar over that threshold.

In this case, organizational costs were $9,500, so they can deduct $5,000 during the first year and $4,500 will be amortized over the next 15 years. Startup costs are $54,500, which means that they can only deduct $5,000 - ($54,500 - $50,000) = $500 during the first year. The remaining $54,000 must be amortized over a 15 year period. Total deduction during the first year = $5,000 + $500 = $5,500

8 0
3 years ago
Don Juan, a single taxpayer, is the sole owner of DJ’s Inc., an S Corporation. This year, DJ’s Inc. incurred a massive $600,000
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Answer:

Don Juan is sole business owner and his loss in excess to the minimum threshold amount is $250,000. So Don Juan may deduct the amount $350,000 in terms of loss.  

If Don Juan does not deduct the loss this year, it would be carried forward to next fiscal statement

Explanation:

Part 1. The calculation is made as below

Excess of business loss ($600,000) – (other business income + Threshold amount ($250,000))

The minimum threshold amount is deductible from the Tax comes out to be $350,000

Part 2. The loss is reflected in next year’s tax statement as net operating loss and can be carried forward. So if Don Juan miss the loss deduction claim, he can do it next year.  

4 0
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