Answer and Explanation:
a. The computation of the weighted average number of shares is shown in the attachment below:
b. Now the earning per share i.e EPS
= (Net Income - Preferred Dividend) ÷ (Weighted average number of shares
)
= ($9,850,000 - $10,000) ÷ (8,720,000 shares)
= $1.13
The preference dividend is
= (2,000 × $100 × 5%)
= $10,000
Answer: Moral hazard
Explanation: Moral hazard can be defined as a situation when an individual increases his risk even when he has the option to no to, as he knows that he is insured and the potential loss will be bore by someone else.
In the given case Joe starting taking risk of fire as he knew that if there comes any loss, it will be bore by the insurance company. Hence the economic problem in this theory is Moral hazard .
Answer:
2) CLTV
Explanation:
Customer lifetime value (CLTV) is simply how much profit do you expect to earn from a specific customer, or group of customers. There are several ways of calculating CLTV, but I believe this is the easiest one.
CLV = T x AOV x AGM x ALT
- T = average transactions per month
- AOV = average order value
- AGM = average gross margin
- ALT = average life span
Answer:
Profit of One unit in excess of break even point = $20
Explanation:
Break even point is where Sales =Total cost
Normal profit per unit $45--25$-$10 = $10
Profit of Units in Excess of Break Even Volume
Sales Price -Variable Cost
= $45- $25 = $20
