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aev [14]
2 years ago
14

Earnings per share: Select one: a. Will always be lower than the dividend paid per share b. Will always be higher than the divid

end paid per share c. Is affected by a stock dividend distributed d. Is not affected by preferred stock or common stock issued
Business
1 answer:
Svetlanka [38]2 years ago
7 0

Answer:

b. Will always be higher than the dividend paid per share

Explanation:

A firm pays dividend to it's stockholders based upon it's earnings.

Earnings per share (EPS) is expressed as:

= \frac{Earnings\ available\ to\ stockholders}{No.\ of\ stocks\ outstanding}

Dividend payout ratio on the other hand is expressed as:

= EPS (1 - b)

wherein, b = retention ratio which denotes the percentage of earnings retained by a firm i.e not distributed as dividends.

Thus, a firm's earnings per share would always be higher than the dividend paid by it per share.

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The West Division of Cecchetti Corporation had average operating assets of $240,000 and net operating income of $42,200 in Augus
professor190 [17]

Answer: See explanation

Explanation:

West Division's residual income in August would be calculated as the difference between the Net Operating Income and the Minimum Required Return.

= $42,200 – ($240,000 x 19%)

= $42,200 - $45,600

= $(3,400) Negative

5 0
2 years ago
Read 2 more answers
The formula for the cross-price elasticity of demand is percentage change in rev: Multiple Choice quantity demanded of B/percent
seropon [69]

Answer:

Quantity demanded of B/percentage change in price of A.

Explanation:

Cross price elasticity of demand is calculated as follows:

= Percentage change in quantity demanded for Good B ÷ Percentage change in price of good A

Cross price elasticity of demand is positive for the substitute goods and negative for the complimentary goods.

For Substitute goods:

It states that there is a positive relationship between the price of a good and the quantity demanded for its substitute goods.

For complimentary goods:

It states that there is an inverse or negative relationship between the price of a good and the quantity demanded for its complimentary goods.

3 0
3 years ago
A partial listing of costs incurred during March at Febbo Corporation appears below: Factory supplies $ 9,000 Administrative wag
lana [24]

Answer:

$293,000

Explanation:

The computation of the product cost is shown below:

= Direct material + direct labor + factory supplies + factory depreciation + indirect labor

= $126,000 + $99,000 + $9,000 + $33,000 + $26,000

= $293,000

The factory supplies + factory depreciation + indirect labor = manufacturing overhead

All other cost are not relevant for the computation part. Hence, ignored it

6 0
3 years ago
When several hurricanes hit Florida in 2004, a number of local governments imposed price controls that prevented sellers from ra
liberstina [14]

Answer:

a reduced availability of these badly needed products.

Explanation:

Price control is when the government imposed a price regime that is aimed at protecting the consumer from over pricing by sellers. When price ceilings are imposed there is a maximum price the the seller cannot go above in pricing of products.

In this case if ocal governments imposed price controls that prevented sellers from raising their prices for badly needed products like plywood and generators. It will result in reduced availability of the products to these areas.

Sellers tend to reduce amount supplied, due to scarcity consumers will have to buy at black market prices that are higher.

3 0
3 years ago
Read 2 more answers
Summit Products, Inc. is interested in producing and selling an improved widget. Market research indicates that customers would
ladessa [460]

Answer:

b.$ 66

Explanation:

The question requires that Summit requires a return on sales of 25 %. To achieve that the cost of goods sold should be 75 %.

if the revised selling price is                                         $ 88

the target cost price would be ( $ 88 * 75 %)              % 66                

7 0
2 years ago
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