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Mekhanik [1.2K]
3 years ago
8

There are __ in every economy that are used to produce the goods and services that people want and need

Business
1 answer:
d1i1m1o1n [39]3 years ago
6 0
Answer:
limited resources
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A characteristic of FICA is that:
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The correct answer is letter "A": None of these.

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The Federal Insurance Contributions Act (FICA) is a U.S. law that requires a paycheck deduction to be paid to Social Security and Medicare. Employers and employees share half the payments. Self-employed people are responsible for the entire tax amount.

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An investor estimates that next​ year's sales for​ Dursley's Hotels Inc. should amount to about ​$100 million. The company has 5
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(a) $10 million

(b) $1 per share

(c) $49

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Explanation:

(a) Estimated net earnings for next year.

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Net profit margin = 10%

Net profit margin = Net Income ÷ Sales

Net Income = 10% × $100 million

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(b) Next year's dividends per share.

Dividend payout = Dividends paid ÷ Net Income

                            = 50%

Dividends paid = $10 × 50%

                          = $5 mil lion

Per share dividend = Dividend paid ÷ Shares outstanding

                                = $5 million ÷ 5 million

                                = $1  per share

(c) The expected price of the stock (assuming the P/E ratio is 24.5 times earnings).

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= Net income ÷ shares outstanding

= $10 million ÷ 5 million

= $2 per share

P/E Ratio = Price per share ÷ Earnings per share

Price per share = $2 × 24.5

                          = $49

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= (Final price - Initial price + Dividend) ÷Initial Price

= ($49 - $40 + $1) ÷ $40

= 25%

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