Answer:
a. The EPS would drop from $6.954 to $(43.046)
b. The EPS would drop from $0.8 to $6.954
c. Firm acquisition will has smaller impact on earning. However, it is not necessary that it is a cheaper method as the firm has to issue a big amount of new shares to new shareholders ( 50 million shares issue in comparison of 6.5 million oustanding shares) which diluted EPS of current shareholders causing potential problem in Corporate Governance ( e.g: new shareholders with substantial voting rights may ask for the re-election of BOD).
Explanation:
As Quisco System acquires new firm, it will have to issue 50 million new shares ( $900 million / $18), resulting in EPS of $0.8 => Total after-tax earning of the company this year with the absence of R&D expenses is $45.2 million ( 0.8 x (56.5 million outstanding shares). => Current year EPS is $6.954 ($45.2 million/6.5 million outstanding shares)
Thus:
+ With the product development through other firm acquisition, Quisco will keep a positive EPS at $0.8 with 56 million outstanding shares.
+ With product development in-house chosen, the R&D expenses will be booked as expenses this year ( as it is uncertain the R&D will bring future benefit yet it is not capitalized), Quisco System's earning would be: $45.2 million - $500 million x (1- 35%) = -$279.8 million => EPS = -279.8 million / 6.5 million shares = $(43.046).
Answer:
Nominal, ordinal
Explanation:
The ISBN numbers given to countries are nominal data as they function only as identifiers and merely used to tell one country from the other as regards ISBN numbers. Nominal measurements are categorical and are seen as names such as I would name 2 persons person 1 and person 2 respectively. Ordinal values are given with condition such that they are given based on certain order. example the countries are given ISBN numbers based on how farther away they are from the north
Answer:
Relationship by assumed representation.
Explanation:
A third party believes a principal has an agent acting on his behalf and interests without properly confirming from the principal, this relationship is known as relationship by assumed representation.
First, the third party is not told by the principal that a particular person is his agent and will represent him, he assumes it, probably because he sees both of them together.
The third party fails to explicitly ask the principal if the agent represents his interests and goes ahead to deal with the agent, he is merely transacting based on assumed representation.
It is totally different when the principal explicitly tells the third party that this is his agent who will be representing him.
I think it all depends on the level of expertise that the mechanic has. If they are a beginner than they may take longer than someone who has fixed the problem multiple times and knows what they are doing. Although a beginner may be cheaper, they may take longer to fix the problem. And it also depends on what they are fixing.
Answer:
inventory
Explanation:
Every item that is produced or purchased by the business in order to resell it and earn profit through it as a normal purpose of business, is considered as inventory.
In the given instance, Shroden manufactures consumer goods, like cookies, batteries, etc:
And since he targets to sell them and earn profit, all these manufactured products is the inventory of his business.