Answer:
D. the supplier will make a profit that would no longer belong to the business
Explanation:
A make or buy decision can be defined as a strategic approach pertaining to making the choice to either produce (manufacture) a product in-house (internally) or purchasing the product from an external supplier. Thus, the make component typically deals with producing the product internally while the buy component strictly has to do with outsourcing or purchasing from an external supplier.
Some of the factors to be considered in a make or buy decision are;
I. Cost savings.
II. Quality issues with the supplier.
III. Future growth in the plant and other production opportunities.
Hence, all of the aforementioned should be considered in a make or buy decision except whether the supplier will make a profit that would no longer belong to the business.
Answer:
$22,000
Explanation:
The original cost of the car was : $26,000
The fair market value of the car was : $12,000
The car was bought at a price higher than its fair market value by :
$26000-$12000 = $14000
She exchanges the car for $18000 to get a new one;
The loss while selling the car is : $26000-$18000=$8000
Total loss realized is : $14000 +$8000 = $22,000
Answer:
a.
Current Share Price = $87.5
c.
The new market value is $77.78
Explanation:
a.
The dividend per year on the preferred stock = 100 * 0.07 = $7
The yield on the preferred stock can be calculated as,
Yield = Preferred dividend / Current Share price
As we know the Yield and the dividend, we can calculate the current share price.
0.08 = 7 / Current Share price
Current Share Price = 7 / 0.08
Current Share Price = $87.5
c.
The dividend per share on the preferred stock remains the same at $7. The new yield is 9%. Using the yield formula we can calculate the new share price,
0.09 = 7 / New Share price
New Share Price = 7 / 0.09
New Share Price = 77.78
Answer:
(A) The number of shares to be used in computing diluted earnings per share for 2018 is 1,576,886 shares
Explanation:
Diluted Earning per share is calculated dividing Eaning or the year excluding preferred dividend by weighted average number of shares.
Weighted Average Number of Diluted Shares = ( 1,000,000 x 6/12 ) + ( 2,000,000 x 6/12 ) + [ (35-26 / 35) x 299,000 ) ]
Weighted Average Number of Diluted Shares = 500,000 + 1,000,000 + 76,886
Weighted Average Number of Diluted Shares = 1,576,886 shares
