Answer:
A. 22.38; 22.38
Explanation:
Calculation to determine what The PE ratio will be____ if the firm issues the dividend as compared to ____ if the firm does the share repurchase
Calculation to determine PE ratio If the firm issues the dividend:
First step is to calculate the Dividends per share
Dividends per share = $10,000/2,000 shares
Dividends per share= $5.00
Now let calculate the P/E
P/E = ($52-5.00)/$2.10
P/E = 22.38
Calculation to determine the P/E If the firm does the share repurchase:
First step is to calculate the Shares repurchased
Shares repurchased = $10,000/$52
Shares repurchased = 192.31
Second step is to calculate the EPS after repurchase
EPS after repurchase = ($2.10 ×2,000) /(2,000 -192.31)
EPS after repurchase= $2.3234
Now let calculate the P/E
P/E= $52 / $2.3234
P/E= 22.38
Therefore The PE ratio will be 22.38 if the firm issues the dividend as compared to 22.38 if the firm does the share repurchase
Answer:
Decentralised organisation
Explanation:
Decentralised organisation are those in which most of the authority to perform tasks is given to.lower level management or even individual teams.
This results in a system where decisions are made faster.
Also a small amount of control is maintained for major decisions.
In the given instance Jake's company gives all lower-level managers the authority to make decisions for his or her department, this is a decentralised organisational system
Answer: interest rates fall and credit is abundant.(D)
Explanation:
Monetary policy is the macroeconomic policy used by the central bank of a country to achieve its macroeconomic objective such as full employment, economic growth, price stability etc. It involves the use of money supply and interest rate to control the economy.
Expansionary monetary policy is when a central bank uses interest rate and money supply to stimulate the economy. This is done by increasing the money supply, and lowering the interest rates. This leads to increase in aggregate demand and also boosts economic growth.
Answer:
There are three primary ways investors could potentially make money from real estate: An increase in property value. Rental income collected by leasing out the property to tenants.
Answer:
C. Liabilities
Explanation:
Financial accounting can be defined as the field of accounting involving specific processes such as recording, summarizing, analysis and reporting of financial transactions with respect to business operations over a specific period of time.
Owner's equity is simply what a person owns outrightly and it is also referred to as net worth. It can be defined as the value of financial and non-financial assets owned by a person minus the total outstanding liabilities or debts of that person. Simply stated, owner's equity refers to the difference between the amount a person own (asset) and the amount owed (liability).
Mathematically, net worth is given by the formula;
Making liabilities the subject of formula, we have;
In Financial accounting, liability can be defined as the amount of money being owed by an individual or organization to another.
Simply stated, liability is a debt being owed and as such it usually has "payable" in its account title on the balance sheet.
Generally, liabilities are recorded on the right side of the balance sheet and it comprises of financial informations such as warranties, bonds, loans, deferred revenues, mortgages, account payable etc.
Hence, Assets minus Owner's Equity is equal to Liabilities.
