Answer:
$1.97
Explanation:
EBIT/9,000 = [EBIT - $25,000*(0.073)] / [9,000 - ($25,000 / $27)]
EBIT / 9,000 = [EBIT - $1,825] / 8074.07
EBIT = $17,739
EPS = [EBIT - $25,000*(0.073)] / [9,000 - ($25,000 / $27)]
EPS = [$17,739 - $25,000*(0.073)] / [9,000 - ($25,000 / $27)]
EPS = $1.97
The investment demand slopes downward and to the right because lower real interest rates because C. enable more investment projects to be undertaken profitably.
Investment demand simply means the demand by businesses for the services and the physical capital goods that are used to maintain the operations or expansion of a business.
It should be noted that when there's a fall in interest rate, there'll be an increase in investment demand. This then results in a multiplier effect on consumption and leads to a rise in the national income.
In conclusion, lower real interest rates because enable more investment projects to be undertaken profitably.
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Answer:
market premium = 0,0781 = 7.81%
Explanation:
We have to calculate the market return and then calcualte the premium as the difference between the expected return on the market and the risk-free rate:
We multiply each outcome by the stock weight. and then for the probability of occurence of that state of economy
Calculations for boom:
Change of boom x (weighted outcome A + weighted outcome B + weighted outcome C)
0.25 x (0.45 x 0.15 + 0.45 0.27 + 0.1 x 0.05) = 0.05
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market expected return 0,1191
Market premium: 0,1191 - 0,041 = 0,0781
Answer:
b) False
Explanation:
The price reduction will stimulate demand for Rajiv's Fire Engines, in the short run, before competitors catch up or even overtake the firm with price reduction strategies of their own. This will in turn drive sales and the production quantity to increase marginally in the short-run. However, in the long-run, because the market is competitive, Rajiv Company will not totally benefit from the price reduction as the price war intensifies among the competitors.
Answer:
$153,333
Explanation:
Calculation to determine What amount should Olympic recognize as compensation expense for 2016
Using this formula
Compensation expense =Total compensation/Vesting period
Let plug in the formula
Compensation expense=($5 x 92,000)/3 years
Compensation expense=$460,000/3 years
Compensation expense=$153,333
Therefore What amount should Olympic recognize as compensation expense for 2016 is $153,333
