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expeople1 [14]
3 years ago
13

Frantic Fast Foods had earnings after taxes of $900,000 in 20X1 with 301,000 shares outstanding. On January 1, 20X2, the firm is

sued 32,000 new shares. Because of the proceeds from these new shares and other operating improvements, earnings after taxes increased by 28 percent. a. Compute earnings per share for the year 20X1. (Round your answer to 2 decimal places.) b. Compute earnings per share for the year 20X2. (Round your answer to 2 decimal places.)
Business
1 answer:
Semmy [17]3 years ago
5 0

Answer:

A.$2.99

B.$1.15

Explanation:

Frantic Fast Foods

A.Computation of the earnings per share for the year 20X

Using this formula

Earnings per Share=Earnings after Taxes/Shares Outstanding

Let plug in the formula

900,000/301,000

=$2.99

The earnings per share for 20X1 will be $2.99

B. Computation of the earnings per share for the year 201X

Earnings after Taxes= 301,000 * 1.28 = 385,280

Shares Outstanding=301,000 + 32,000 = 333,000

Hence,

Earnings after Taxes/Shares Outstanding

385,280 / 333,000 = $1.15

Therefore the earnings per share for 20X1 will

be $1.15 .

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The consumption function shows the relationship between consumption spending and _______. The slope of the consumption function
Stella [2.4K]

Answer:

Consumption Function : Relationship between Consumption Spending & Income

Consumption Function Slope = Marginal Propensity Curve  (MPC)

Change in Consumption = Change in Income X MPC

Explanation:

Consumption Function is the curve representing relationship between Consumption spending and Income.

C = a + bY ; where :- C = Consumption , Y = Income ,  a = Autonomous Consumption i.e consumption at 0 level of income , b = MPC i.e additional consumption consumed from additional income = ΔC / ΔY

b = MPC i.e change in C due to additional change in Y = ΔC / ΔY is the slope of Consumption Function

MPC = ΔC / ΔY .

So, change in consumption i.e ΔC = MPC X ΔY  

6 0
3 years ago
In order to be the basis for a firm's superior performance, a bundle of resources must be valuable, rare, and imitable.
frozen [14]

Answer:

The statement is: False.

Explanation:

A bundle of resources has three characteristics: valuable (<em>the resource helps the company to pursue its objectives and is priceless for consumers</em>), rare (<em>limited competition</em>), and inimitable (<em>resource is not easy to reproduce by the firm's closest competitors or imitating it is expensive</em>).

Being<em> imitable </em>is the opposite of what a bundle of resources should be.

7 0
3 years ago
Joe was tired of working for other people. He had an idea to start his own ice cream business and wanted to set it up where he a
d1i1m1o1n [39]

Answer:

Authority - Responsibility Balance & Incentive Development.

Explanation:

Authority refers to the power to command, give orders to somebody. And enjoying the position of having right to get it obeyed.

Responsibility refers to being in a position of accountability, answerability for an allocated task or job & its performance.

For Eg : A manager  given responsibility to complete a task of production targets achievement, is also given authority to command the entire staff at the production site.

Joe had problem while working for someone else that :- he had responsibility to complete employers allocated task, but may be not given enough authority to do so, thats why he felt he is being 'commanded by, working for' someone else. Also, he doesn't owe the rewards of his acts, so lacks incentive.

Being an entrepreneur will entitle him with managerial responsibilities, but at the same time will also give him higher authority to take his own independent decisions. And, he is himself responsible for his acts, will bear losses or enjoy profits for himself. So, it also incentivises him to work for himself.

8 0
3 years ago
Purchasing a diamond represents ________ because consumeres buy diamonds infrequently and have no estabilished criteria for eval
Vesnalui [34]

Answer: Purchasing a diamond represents <u>Extensive problem solving </u>because consumeres buy diamonds infrequently and have no estabilished criteria for evaluating them

Explanation:

<u>Extensive problem solving is </u>the process of a customer trying to get all the information they need in order to be able to buy a product . This is likely to occur when the customer is purchasing a product that they have not bought before.

7 0
3 years ago
Ace Hauling, Inc., has been transporting industrial tailings for companies around the Minneapolis/St. Paul area for the past dec
natulia [17]

Answer: The correct answer is "b. Ace has done nothing to change its CERCLA liability."

Explanation: CERCLA is the Comprehensive Environmental Response, Compensation and Responsibility Act and was designed to promote cleaning, maintenance and protection of the environment against hazardous waste.

Those responsible for releasing dangerous substances are identified to take care of their cleaning through the superfunds, therefore by creating the new corporation and transferring the assets: Ace has done nothing to change its CERCLA liability.

7 0
3 years ago
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