Answer:
Net income = $76,000
Earning per share (EPS):
Income from continuing operations per share = $4.40 per share
Loss from discontinued operations per share = -$3.64 per share
Net Income per share = $0.76 per share
Explanation:
Note: See the attached excel file for the income statement.
Also Note: Two years (2016 and 2018) were mistakenly mentioned in the question instead of just one of them. I therefore picked 2016 to prepare the income statement.
In the attached excel file, the earning per share (EPS) is calculated as follows:
Number of shares outstanding = 100,000 shares
Income from continuing operations per share = Income from continuing operations / Number of shares outstanding = $440,000 / 100,000 = $4.40 per share
Loss from discontinued operations per share = Loss from discontinued operations / Number of shares outstanding = -$364,000 / 100,000 = -$3.64 per share
Net Income per share = Net Income / Number of shares outstanding = $76,000 / 100,000 = $0.76 per share
Answer:
Resource dependence perspective of the organization assist an organization in reducing the extent of risk involved in operating environment.
Explanation:
Managers should always try to succeed and survive on their own and reduce the dependence on other organisation.
If i were the firm, the action i would take to succeed and survive includes;
1. By maintaining good relations with the labor and treat them right. this way, they wouldn't feel the need to find another job.
2. The Small firm should also maintain a good relation with the larger firm. and the small firm can also introduce innovative products. so as to increase turnover, higher profit rate and expansion.
Futhermore, Larger companies can assume role as product distributors and business partners. both the large firm and small firm can broaden their global prospects by forming partnership that capitalise on their complementary strengths. at the same time respecting the independence of each.
Answer:
A. the portion of the investment opportunity set that lies above the global minimum variance portfolio.
Explanation:
The Efficient frontier refers to the portfolios set that involves that expected return whose return is high at the level of minimum risk so the asset that contains the high risk profile that investment opportunity set portion should be above the variance portfolio i.e. minimum globally
Therefore the correct option is a.
Answer:
D. Shoes Cult has a competitive advantage over Aros.
Explanation:
Competitive advantage is defined as the advantage an entity has when they are able to produce a good at cost that is lower than the cost incurred by other parties in the same industry. This results in higher profit margins for businesses that have low production cost.
In this scenario Aros produces shoes for $20 while Shoes Cult produces the same shoes for $22. They both have the same price ceiling of $30.
Aros has competitive advantage over Shoes Cult because they produce at a lower cost and make more profit than Shoes Cult.
Assume they both sell at the maximum price. Profit for Aros= 30- 20=$10
Profit for Shoes Cult= 30-22= $8
