Bovin and bogus are the 2 variablez used in a spurious relationship
Answer:
The CEO may decrease the firm's financial leverage, thus lowering the firm's total leverage.
Explanation:
Earnings per share is defined as the amount that is earned per unit of a companie's share in a particular period.
When there is variability in EPS of a company investors tend to lose confidence in performance of the company.
This is because positive performance in one period may not be sustained in the next period.
In order to reduce variability the CEO may decrease the firm's financial leverage, thus lowering the firm's total leverage.
Leverage is the use of debt to buy more assets. Reducing high leverage of the company will reduce the amount the company is obligated to pay other parties. So earning are not affected by debt repayment.
This will reduce variability in EPS.
Answer:
- It is not immediately obvious whether the effect of the conversion of a particular convertible security would be dilutive or antidilutive.
- If the effect of the conversion or exercise of potential common shares would be to increase EPS, the related securities are referred to as antidilutive securities.
- To determine whether convertible securities are dilutive, we can compare the “incremental effect” of the conversion (expressed as a fraction) with the EPS fraction before the effect of any convertible security is considered.
Explanation:
The antidilutive securities may be defined as the financial instruments for which an organization possess at a particular point of time that are not in the form of a common stock. When these antidilutive securities are converted into a common stock, it results in an increase in earnings for one share of the organization. Thus the EPS or the earnings per share increases when the the antidilutive securities are converted into the common stocks.
The following effects of the antidilutive securities on the EPS are true :
- the effects of conversions of any convertible security are not immediately obvious that it would be dilutive or antidilutive.
- when the effect of the conversion or the exercise of any potential common shares is to increase the EPS, then the securities are called as antidilutive securities.
- To know if the convertible securities are dilutive or antidilutive, we have to compare its incremental effect with the EPS before any effect of the conversion.
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Every company strives to keep their brand positive.</span>
<span>Cash advance fee:
2% of $200 = 0.02 * 200.00 = $4.00
One month's interest, if the interest is compounded monthly:
18% of $204.00, divided by 12 months/year = 0.18 * 204.00 / 12 = $3.06
Total paid:
$200 + $4 + $3.06 = $207.06
Paying directly with the card instead of borrowing cash would have saved the $4 charge and would also have reduced the interest from $3.06 to $3.00.
Paying directly with the card and then paying before the billing cycle would also save the $3.00.She would only have paid the original $200, saving the whole $7.04.
Effect of paying directly with the card and paying it off before the billing cycle: $200 total paid, saving $7.04 in fees and interest.</span>