Warren Supply Inc. is evaluating its capital budget. The company finances with debt and common equity, but because of market con
1 answer:
Answer:
37.5%
Explanation:
Given:
Earnings per share, EPS = $3.00
Outstanding shares of stock = 500,000
Capital budget = $800,000
Dividend per share = $2.00
Now,
The total earning of the Warren Supply Inc. = EPS × Outstanding shares
or
Total earning of the Warren Supply Inc. = $3.00 × 500,000 = $1,500,000
Total Dividends paid = Dividend per share × Outstanding shares
or
Total Dividends paid = $2.00 × 500,000 = $1,000,000
Therefore,
the total retained earnings = Total earning - Total Dividends paid
or
the total retained earnings = $1,500,000 - $1,000,000 = $500,000
Thus,
the capital budget that must be financed with debt
= Forecasted capital budget - Total retained earning
= $800,000 - $500,000
= $300,000
Hence,
the percentage of capital budget that must be financed with debt
=
on substituting the respective values, we get
=
Percentage of capital budget that must be financed with debt = 37.5%
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Answer:
Number of units possible in S are 4.
Explanation:
Given <em>S</em> is a set of complex number of the form where <em>a</em> and <em>b</em> are integers.
is a unit if
exists such that
.
To find:
Number of units possible = ?
Solution:
Given that:
Taking modulus both sides:
Using the property that modulus of product of two complex numbers is equal to their individual modulus multiplied.
i.e.
So,
......... (1)
Let
Then modulus of z is
Given that a and b are <em>integers</em>, so the equation (1) can be true only when (Reciprocal of 1 is 1). Modulus can be equal only when one of the following is satisfied:
(a = 1, b = 0) , (a = -1, b = 0), (a = 0, b = 1) OR (a = 0, b = -1)
So, the possible complex numbers can be:
Hence, number of units possible in S are 4.