Answer:
$22.00
Explanation:
Book value per share = Total shareholder equity/ number of share outstanding
Total equity as of 31 Dec 2010 = total common equity at 31 Dec 2009 + net income of 2010 – paid out dividends in 2010 = $2,050,000 + $250,000 - $100,000 = $2,200,000
The book value per share at 12/31/10 = Total equity as of 31 Dec 2010/ number of share outstanding = $2,200,000/ 100,000 = $2200
In economics, income elasticity of demand measures the response
of the number demanded for a good or service to a change in the income of the people
demanding the good or service. The formula for calculating this metric is:
Income Elasticity Demand =
Change in Quantity Demanded / Change in Income
Income Elasticity Demand =
55 nights – 33 nights / $600 - $400
Income Elasticity Demand =
0.11 = 11%
Since
<span>Income Elasticity Demand is 0.11 or 11%
(positive number), therefore this means that an increase in income of the
people leads to an increase in the demand of nights dining out.</span>
Answer: b. Riskier over time, and its value will decrease
Explanation:
Because the company is using the investor's required rate of return instead of one that takes into account the riskiness of the two division, you find that risk is not being adequately accounted for.
This would lead to a situation where the company becomes riskier because it is not accounting for its risk properly. With higher risk, the company will be unable to seek funding easily which would lead to lower investments being undertaken and an overall decrease in company value.
Answer: $160,000
Explanation: Retained earnings can be defined as the amount pf earnings left with the company after taking into consideration all tyoes of dividends and taxes.
formula :-
Retained earnings = previous retained earnings + net income - dividends to equity holders - dividends to preference holders
thus,
Retained earnings = $140,000 + $65,000 - $10,000 - $35,000
= $160,000
Answer:
Allocates a portion of the total discount to interest expense each interest period.
Explanation:
First, we understand that once a bond is issued at a discount, the first implication is the existence of a debit figure representing the discount on the bond issued.
However, the treatment of this discount figure is this:
First, the difference between the interest based on the effective interest rate of the carrying value of the bond and the interest based on the coupon rate on the face value of the bond is calculated. Once calculated, the discount figure is then amortized to the value of the difference between the two interest figures.
As such, amortizing discount on bonds affects the interest expense each interest period.
