Answer:
a-1. We have:
Recession EPS = $1.49
Normal EPS = $2.13
Expansion EPS = $2.45
a-2. We have:
Recession percentage change in EPS = -30.00%
Expansion percentage change in EPS = 15.00%
b-1. We have:
Recession EPS = $1.12
Normal EPS = $1.76
Expansion EPS = $2.08
b-2. We have:
Recession percentage change in EPS = -36.36%
Expansion percentage change in EPS = 18.18%
Explanation:
Note: See the attached excel file for the calculations of the EPS and the percentage changes in EPS.
From the attached excel file, we have:
a-1. Calculate earnings per share (EPS) under each of the three economic scenarios before any debt is issued.
Recession EPS = $1.49
Normal EPS = $2.13
Expansion EPS = $2.45
a-2. Calculate the percentage changes in EPS when the economy expands or enters a recession.
Recession percentage change in EPS = -30.00%
Expansion percentage change in EPS = 15.00%
b-1. Calculate earnings per share (EPS) under each of the three economic scenarios assuming the company goes through with recapitalization.
Recession EPS = $1.12
Normal EPS = $1.76
Expansion EPS = $2.08
b-2. Given the recapitalization, calculate the percentage changes in EPS when the economy expands or enters a recession.
Recession percentage change in EPS = -36.36%
Expansion percentage change in EPS = 18.18%
Answer:
Local spaces open for public to help them with social activities. Parks, gyms, store, mall and clubs are some of local spaces which are open to everyone for gaining relaxation in their leisure time.
Explanation:
People are busy in weekdays and they need some place for relaxation on weekend. There are many places which provide with recreational activities for people to relax and spend their weekends with their family.
A small start-up is a good fit for Alex.
Startups are frequently internet- or technology-based firms with broad market appeal. On the other hand, you don't need a sizable market to expand into in order to run a small firm. All you need is a market, and you must be able to effectively contact and service every member of that market.
Despite their tiny size, startups can have a big impact on the expansion of the economy. Startups are the epicenters of the invention; they generate jobs, which increases employment and boosts the economy; and they have a noticeable influence on the cities in which they settle.
After a few years of operation, startups are on the road to success. While small firms develop quickly, they can only do so if they start to see success over time. A startup needs time to develop and gain a large customer base that can use its product.
Types of startups are:
- Buyable startups
- Scalable startups
- Offshoot startups
- Social startups
To know more about startups refer to: brainly.com/question/14488761
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<span>b. debit interest receivable for $500 and credit interest revenue for $500
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Answer:
B. Controllable costs
Explanation:
There are some costs that are expended by a company during the cost of carrying out their business operations. These costs such as labor costs and marketing budgets are incurred because the company has full authority over them. They are costs that can be altered in short term based on a business decision.
In other words, controllable costs are those costs or expenses that can be influenced by those who are saddled with the responsibilities of incurring them.
