To record the dividend declaration
Ordinary Share Capital $90000
Dividend Payable $90000
to record payment
Dividend Payable $90000
Cash $90000
The amount is derived from the shares issued and outstanding so, the 190000 issued is deducted by 10000 treasury shares because treasury shares are reacquired by the company so it is not an outstanding share, then just multiply the answer with the dividend per share to arrive at $90000
190000-10000shares * $.50 =$90000
Answer: It just would not be a cross walk it would be a road.
Explanation:
Answer:
APR would be 3.9607805% compounded semiannually
APR would be 3.9284877% compounded monthly
Explanation:
We calcualte consider these rates should be inancially equivalent to an equivalent rate of 4% annually.
<u>The semiannual compounding will capitalize two times:</u>
<u>The monthly will capitalize 12 times per year:</u>
![(1+APR/12)^12 = 1+EAR\\(\sqrt[12]{1.04} -1) \times 12 = 0.039284877](https://tex.z-dn.net/?f=%281%2BAPR%2F12%29%5E12%20%3D%201%2BEAR%5C%5C%28%5Csqrt%5B12%5D%7B1.04%7D%20-1%29%20%5Ctimes%2012%20%3D%200.039284877)
Answer:
$1,500
Explanation:
Given that,
A man wishes to purchase a life insurance policy that will pay the beneficiary $25,000 if the man's death occurs in the next year.
The probability that the company pays nothing is 0.94 and there is 0.06 probability that the company pays $25,000.
So, on an average expected loss is as follows:
= 0.94 × $0 + 0.06 × $25,000
= $1,500
Hence, the minimum amount that he can expect to pay for his premium is $1,500.
Answer:
The MPC is 0.8
The multiplier or k is 5
The increase in income would be $20 million.
Explanation:
The marginal propensity to consume (MPC) is the proportion of increased disposable income that consumers spend. It is a metric to quantify the induced consumption and how an increase in consumer spending occurs as a result of increase in income.
MPC is calculated as follows,
MPC = Change in consumer spending / change in income
MPC = 240 / 300
MPC = 0.8 or 80%
To calculate the multiplier, we simply use the following formula,
Multiplier or k = 1 / (1 - MPC)
k = 1 / (1 - 0.8)
k = 5
So, the expenditure multiplier for the economy would be 5.
To calculate the increase in income, we will multiply the investment amount by the expenditure multiplier.
Income increase = 4000000 * 5
Income increase = $20000000 or 20 million
