Answer:
the number of shares to be used in computing basic EPS is 2,100,000.
Explanation:
Basic Earnings Per Share = Earnings Attributable to Holders of Common Stock ÷ Weighted Average Number of Common Stocks
<u>Weighted Average Number of Common Stocks Calculation :</u>
Common Stocks Outstanding on 1 January 2,000,000
Additional Shares 9/12 × 100,000 75,000
Additional Shares 3/12 × 100,000 25,000
Weighted Average Number of Common Stocks 2,100,000
Answer:
Minimum transfer price = $86
Explanation:
Pump Division is operating at full capacity, hence it has no excess capacity
This implies that it can not produce enough to meet both the internal demand (from the Pool Division ) and external buyers.
Hence, it implies that Pump Division cannot accommodate the demands of the Pump Division at a price lower than the external price of $86. Any price lower than $86 would result into a loss in contribution.
To maximize and optimize the group profit, the minimum transfer price should be set as follows:
Minimum transfer price = External selling price at which Pump Division sells to outside customers
Minimum transfer price = $86
Answer:
The correct answer is option a.
Explanation:
An interior decorator has moved his business from Los Angeles to St. Paul, Minnesota because his spouse's company transferred her to St. Paul.
The decorator is distressed because the customers in his target market have, in his words, "banal and bourgeois taste."
The customers in St. Paul have a different taste from the customers that he catered to in Los Angeles. The consumer tastes and preferences may differ from place to place according to the climatic conditions, social status, cultures, etc.
The problem with the decorator is that he does not understands that customer needs are not right or wrong, good or bad. It is not right or wrong if the customers in Minnesota have a different preference from customers in Los Angeles.
Comparing two annuities (A and B), that offer 10 years of monthly payments, both are identical except payment date. A pays on the 1st, but B pays at the end of each month. Annuity A has a higher future value than B.
<h3>What do you mean by future value?</h3>
Future Value (FV) is a financial concept that assigns value to assets based on estimated variables such as future interest rates and cash flows. It is useful for investors to know what their investment will look like in five years and the expected return. For example, if you invest $1,000 in your savings account today at 2% annual interest, it will be worth $1,020 at the end of the year. Therefore, its future value is $1,020.
<h3>What is future value formula used for? </h3>
The Future Value (FV) formula is a financial term used to calculate the value of a future dated cash flow compared to the original receipt.
The simplest form of the future value (FV) formula is FV= PV*(1+i)^n. where "PV" is the present value, "i" is the interest rate, and "n" is the number of periods.
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