Economic institution that works in a businesslike manner but does not seek financial gain. *

Ignatius Corporation had 7 million shares of common stock outstanding during the current calendar year. It issued ten thousand $

Zepler [3.9K]

Answer:

Ignatius Corporation

Basic and Diluted EPS are:

c. $ 2.85 $ 2.67

Explanation:

Data and Calculations:

Common stock outstanding = 7 million shares

Issued 10,000, $1,000 convertible bonds = $10,000,000

Convertible bonds = 10,000 bonds = 500,000 shares (10,000 x 50)

Interest payment = semiannual at 10% per annum

6%, 100,000 Cumulative preferred stock at $100 par = $10,000,000

Preferred dividend = $600,000

Net Income of $20 million

Basic EPS = $20,000,000/7,000,000 = $2.857 per share

Diluted EPS = $20,000,000/7,500,000 = $2.67 per share

To obtain the diluted EPS, the outstanding common stock is increased by the number of potential convertible bonds.

8 0

3 years ago

According to the Monetarist theory, _____________is a critical causal force that determines the nominal GDP..

aivan3 [116]

Answer:

money supply

Explanation:

Monetarists are a branch of new classical economists that, as the name suggests, believe that money has a very important part to play within an economy.They believe that aggregate expenditures in the economy are influenced by the market rate of interest, and therefore money can affect the level of output in the short run economy.However, they further believe that money influences the long run unemployment in the economy. If monetary policies are used to increase aggregate demand, it is thought that this use of additional money may cause a short term boost in output, but will ultimately lead to inflation in the economy.

So the answer is money supply

7 0

4 years ago

If Professor Siegel is correct that stocks are less risky than bonds, then the risk premium on stock may be zero. Assuming that

Ulleksa [173]

If Professor Siegel is correct that stocks are less risky than bonds, then the risk premium on stock may be zero. Assuming that the risk-free interest rate is 2.5 percent, the growth rate of dividends is 1 percent and the current level of dividends is $70, use the dividend-discount model to compute the level of the S&P 500 that is warranted by the fundamentals.

Instruction: Round your response to 2 decimal places.

The level of the S&P 500 is

Answer:

Dividend discount model:

Price= D(1+g)/r-g

g=growth rate 1%

r= as given in question risk free rate 2.5%

D₀= $70

D₁=$70(1+0.01) with growth rate

Solution:

70(1+0.01)/(0.025-0.01)

=$4713.33

5 0

4 years ago

A pretzel-stand owner in Chicago hires workers to make hot pretzels and sell them to customers. If the firm is competitive in bo

lisabon 2012 [21]

Answer:

D. no control over either the price of pretzels or the wage it pays to its workers.

Explanation:

A competitive market is characterised by many firms that are price takers. Firms that are price takers have no influence over the price they charge for their products; prices are set by the forces of demand and supply.

If the market for pretzels are competitive, the firm cannot set the price for pretzels. If the pretzel stand owner increases the price for pretzels, consumers patronize other pretzel stand owners. There would be no incentive for the pretzel owner to reduce its cost because the pretzel stand owner would be reducing its revenue and reducing its profit

If the market for pretzel makers is competitive, firms have no influence on wages that can be paid to workers.Wages are determined by the forces of demand and supply. If wages are cut, workers move to other firms. There would be no incentive to increase wages because it would increase cost and reduce profit.

4 0

3 years ago

All of a country’s citizens pay the businessesgovernmentinsurance companies an income tax that is 7% of their annual earnings. T

nikitadnepr [17]

Answer: All of a country's citizens pay the government an income tax that is 7% of their annual earnings. This tax is a Proportional tax.

Explanation:

The government of a country receives revenue in many forms. With this revenue, the government provides services to the people of the country and works for their betterment. One of the modes of income of the government is the taxes that the people pay to the government.

The citizens of the country have to pay a certain percentage of the income that they on an annual basis. That percentage is 7% of the annual earnings to the government in the form of taxes. This form of tax is proportional tax because only a certain proportion of the total income is to be paid by the people to the government. In return the government has to provide services like building roads, tracks, providing street lights and so on which is to make the lives of the people easier and better.

4 0

3 years ago

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