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lakkis [162]
3 years ago
8

Required earnings are the:_______

Business
1 answer:
Umnica [9.8K]3 years ago
4 0

Explanation:

Required earnings are the minimum amount of earnings to meet the cost of equity capital requirements.

required earnings = book value of equity capital×required rate of return on common capital.(or common capital).

multiplying by market value is not correct to find out the required earnings.(option a is false ).

net income is calculated from required earnings, so there is no need to multiply net income or adjusted net income with required rate of return on common equity capital. Hence, b and c both are wrong.

Hence option d that is the book value of common equity capital at the beginning of the period multiplied by the required rate of return on common equity capital, is correct.

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What were the most important factors that led to the midwest becoming known as the rust belt?
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The Rust Belt became an industrial hub due to its proximity to the Great Lakes, canals, and rivers, which allowed companies to access raw materials and ship out finished products. These were the most important factors.
5 0
2 years ago
Which of the following statements is true about expropriation?
Tpy6a [65]

Answer:

Firms at the greatest risk of expropriation are in extractive, agricultural, or infrastructural industries such as utilities and transportation.

Explanation:

Governments are more interested in this kind of business, as often, in developing countries, <em>extractive</em> and <em>agricultural</em> create genuine richness, usually more than others as <em>retail</em> or <em>manufacturing</em>, for example. On the other hand, regarding <em>utilities</em> and <em>transportation</em>, expropriation is made as a consequent of populism measures and not for wealth creation.

8 0
4 years ago
The owners of Carpo Inc., a watch company, also own a steel company and a leather goods manufacturing company. This relieves the
Temka [501]

Answer: cost advantage  

 

Explanation: In simple words, cost advantage refers to the advantage earned by the company due to their ability to produce a product at lower cost than others.

In the given case, Carpo inc,. is also the owner of steel and leather companies thus they can make watches at a lower cost as they do not have to bear to profit margin that the external supplier will be getting from them.    

Hence from the above we can conclude that the correct option is D.

   

3 0
3 years ago
One of the key features of capitalism is Answer favoritism. cooperation. inequality. competition.
jok3333 [9.3K]
Competition between producers is essential to capitalism.
7 0
3 years ago
Selected information from Gerrard, Inc.’s financial activities in the year 2004 was as follows: Net income was $330,000. The tax
ValentinkaMS [17]

Answer:

$0.26

Explanation:

diluted earnings per share (EPS) = (net income - preferred dividends) / (weighted average outstanding shares + diluted shares)

net income = $330,000

preferred dividends = 2,000 x $500 x 8% = $80,000. Since the preferred stocks are convertible, they will be considered diluted shares. Therefore, no preferred dividends will be included in the calculation.

weighted average outstanding shares:

  • January 1 = 700,000 x 12/12 = 700,000
  • March 1 = 200,000 x 10/12 = 166,666.7
  • total weighted average = 866,666.7

diluted shares = 2,000 preferred stocks x 200 = 400,000

diluted EPS = $330,000 / (866,666.7 + 400,000) = $0.260526247 ≈ $0.26

8 0
4 years ago
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