Answer:
Correct answer is (C)
Explanation:
At the beginning of the year.
Earnings per share (EPS) is the portion of profit earned by the company that is allocated to each outstanding share of its common stock. It is determined by taking the difference between a company's net income and dividends paid for preferred stock and then divided by the average number of shares outstanding. So if stock split occurred when calculating the current year EPS, the shares are treated as issued at the beginning of the year.
Answer:
The 1-year HPR for the second stock is <u>12.84</u>%. The stock that will provide the better annualized holding period return is <u>Stock 1</u>.
Explanation:
<u>For First stock </u>
Total dividend from first stock = Dividend per share * Number quarters = $0.32 * 2 = $0.64
HPR of first stock = (Total dividend from first stock + (Selling price after six months - Initial selling price per share)) / Initial selling price = ($0.64 + ($31.72 - $27.85)) / $27.85 = 0.1619, or 16.19%
Annualized holding period return of first stock = HPR of first stock * Number 6 months in a year = 16.19% * 2 = 32.38%
<u>For Second stock </u>
Total dividend from second stock = Dividend per share * Number quarters = $0.67 * 4 = $2.68
Since you expect to sell the stock in one year, we have:
Annualized holding period return of second stock = The 1-year HPR for the second stock = (Total dividend from second stock + (Selling price after six months - Initial selling price per share)) / Initial selling price = ($2.68+ ($36.79 - $34.98)) / $34.98 = 0.1284, or 12.84%
Since the Annualized holding period return of first stock of 32.38% is higher than the Annualized holding period return of second stock of 12.84%. the first stock will provide the better annualized holding period return.
The 1-year HPR for the second stock is <u>12.84</u>%. The stock that will provide the better annualized holding period return is <u>Stock 1</u>.
Answer:
True
Explanation:
Retained earnings are the net earnings of an entity accumulated over time after payment of dividend. It is that part of earnings that is retain for expansion by the entity.
Generally, retained earnings are not changed by direct posting except it is prior year adjustment. in some entities, the amount that is transferred to retained earnings is system generated. Most transactions that affect retained earnings are debited or credited to account which ultimately affects retained earnings
At breakeven point, the cost is equal to the revenue. This also means that the net profit is equal to zero. If we let x be the number of units sold or produced, the total costs and revenue are calculated as follows:
Total Cost = 10x + 10,000
Total Revenue = 20x
Equation both,
10x + 10,000 = 20x
The value of x from the equation is 1000.
Answer: 1000
A. Experiencing an inflationary gap; when actual output exceeds potential output the price level rises because employers have to raise wage rates to entice more people into the labor market and employers have to pay more for other inputs that become more expensive to produce.
What is an output gap?
The difference between an economy's actual and potential output is measured economically as the "output gap." The maximum amount of products and services that an economy can produce at its peak efficiency, or when it is operating at capacity, is known as potential output. Potential output is frequently referred to as the economy's production capacity. An output gap suggests that an economy is running at an inefficient rate—either overworking or underworking its resources.
How it causes inflation?
Potential output, which is often defined as the level of output consistent with no pressure for prices to rise or fall, is frequently used by policymakers to measure inflation. The production gap serves as a quick indicator of the relative importance of the demand and supply sides of the economy in this situation. Thus, the output gap is a crucial link between the real side of the economy, which generates goods and services, and inflation. It quantifies the strength of inflation pressure in the economy.
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