Answer:
Diluted earnings per share is $1.38
Explanation:
The earnings per share =earnings for common stock/number of common stock
However,the diluted earnings considers a situation where the bonds as if the bonds have been converted to common stock,hence the after tax interest payment on the bonds would be saved by increasing net income attributable to common stock and the number of common stock also increase at the same time with the possible number of stocks issued in place of bonds.
diluted earnings per share=$3,000+($21,000*2%*(1-25%)/1200+1200
=$3315/2400=$ 1.38
The correct answer is " new firms will enter the market"
Answer:
C. Marketing and administration
Explanation:
Non manufacturing cost are cost that are not related to the production process.
Non manufacturing cost are period cost which are treated as expenses and deducted from the revenue of the period in which they are incurred. Non manufacturing cost includes selling expenses, distribution expenses, administration expenses, marketing expenses and all other expenses that is related to trading and not manufacturing.
Answer:
NPV = - $ 2
Explanation:
given data
costs = $200 million
present value successful = $270 million
unsuccessful = $120 million
probability of success = 52%
to find out
expected NPV
solution
we know cost is = $200
and Cash flows if Successful = $270 and Probability = 52%
so
Cash flows if unsuccessful = $120 and Probability will be= 100% - 52% = 48 %
so
expected Present value of the venture will be
expected Present value of the venture = $270 × 52% + $120 × 48 %
expected Present value of the venture = $198
so NPV = $198 - $200
NPV = - $ 2