- Companies buyback shares for a variety of reasons, including firm consolidation, increased equity value, and to appear more financially appealing.
-The disadvantage of buybacks is that they are frequently financed with debt, putting a burden on cash flow.
-Stock repurchases can have a modestly favorable impact on the economy as a whole.
Answer:
Return on assets = 10.87 %
Return on assets = 11.42%
Return on assets = 12.51 %
Explanation:
given data
arithmetic average return = 13.60 percent = 0.1360
geometric return = 10.44 percent = 0.1044
observation period N = 30 years
solution
we will use here Blume formula for return of the asset for 5 , 10 and 20 year
Return on assets = Arithmetic average return × (N - T) ÷ (N - 1) + Geometric average × (T - 1) ÷ (N - 1) ....................1
here N is observation period and t is time period i.e 5, 10 and 20
put here value for all 3 we get
Return on assets = 
Return on assets = 0.108759 = 10.87 %
and
Return on assets = 
Return on assets = 0.114207 = 11.42%
and
Return on assets = 
Return on assets = 0.125103 = 12.51 %
Answer:
Portugal has a comparative advantage in the production of shoes
Austria has a comparative advantage in the production of fishes
Explanation:
A country has comparative advantage in production if it produces at a lower opportunity cost when compared with other countries.
Portugal has a lower opportunity cost in the production of shoes when compared with Asutria. Portugal has a comparative advantage in production of shoes.
It means thay Asutria is better at producing fish and would therefore have a comparative advantage in the production of fish.
I hope my answer helps you
Net Income for an organization is the Profit After tax and dividend paid. The formula for Net Income is:
Net Income = Sales - Cost of goods Sold - Operating Expenses - Return and Allowances - Taxes - Cash dividends
From the data given,
Sales = $12 Million
Cost of Goods Sold = $3 Million
Operating Expenses = $3 Million
Interest Expenses = $0.5 Million
Returns and Allowances = $1 Million
Taxes = $0.1 Million
Cash Dividend = $0.4 Million
By putting the variables in the above formula,
Net Income = $12 Million - $3 Million - $1 Million - $3 Million - $0.5 Million - $0.1 Million - $0.4 Million
Net Income = $4 Million
<u>Therefore, the answer is B Net Income is $ 4 Million</u>
