Answer:
The answer is:
A. Yes
B. 3.6
C. 3.43
Explanation:
A. Yes, the warrants is dilutive because the average market price($15) is higher than option price($10).
B. Since there is no preferred shares or preferred dividends, the basic earnings per share is:
Net income ÷ weighted average shares
= $360,000 ÷ 100,000 shares
= 3.6
C. First we need to find the incremental shares. The formula is:
[(average market price - option price) ÷ average market price]x number of shares
[($15 - $10) ÷ $15] x 15,000 shares
$0.33333 * 15,000 shares
5,000 shares
Total number of shares is now 105,000shares(100,000 shares + 5,000)
Therefore, diluted shares is now
$360,000 ÷ 105,000 shares
3.43
Answer:
the lump sum that would equal the present value of the annual installments is $38,163,612
Explanation:
The computation of the lumspum amount is as follows;
= Cash flow × (1 - (1 + rate of interest)^-number of years) ÷ rate of interest)
= $89 million × (1 - (1 + 0.0765)^-26) ÷ 0.0765)
= $38,163,612
Hence, the lump sum that would equal the present value of the annual installments is $38,163,612
Therefore the above is calculated by applying the given formula
Answer: O EQUILIBRIUM
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Answer:
research four other examples of inferior goods.
There are many examples of inferior goods. Inferior goods are al those goods whose demand rises in times of economic recession. Some examples are:
Cheap food substitutes like supermarket coffee, instantaneous ramen, or canned vegetables.
Cheap clothes.
Flights in low-cost airlines.
Consider the impact of economic recessions and expansions on normal goods.
Economic recessions impact normal goods negatively because people have less income to spend, and they opt to substitute the normal goods for inferior goods.
discuss how revenues of inferior goods producers are expected to be affected by economic recessions and expansions.
In economic recessions, revenues for producers of inferior goods are expected to rise because demand for inferior goods grows. However, because inferior goods are precisely cheaper, this does not necessarily mean that every inferior good producer will make a lot of money.
In economic expansions, revenues for producers of inferior goods will fall, because people, with more income, will flock to normal goods or even luxury goods.
