in other words, the plan should have Accuracy
No matter what plan you have, sometimes you have to make some adjustments in order to survive from the problems.
But whatever adjustments you made during that, it should not stray from the original central plan in order for the company to achieve its goals
Answer:
See the explanation below for the basic EPS and diluted EPS
Explanation:
To calculate EPS we use the earnings of the company adjusted for any income for preferential shareholders. In this case there is no preference shareholders. Thus income attributable to ordinary shareholders is $ 420 000 (net income)
Average outstanding shares for BASIC eps calculation is 1500 000 shares.
BASIC EPS = 420/1500
= $ 0,28 per ordinary share
When calculating diluted EPS we include instruments that can potentially increase the number of shares and dilute net income. Thus we will include the 60,000 shares to executives that have a three year condition attached to them.
Diluted EPS = 420/(1500+60)
= $0,269
Answer:
option A
Explanation:
Hedge ratio = (36 - 32)/(32 - 26)
= 4:6
Thus investor needs to buy 0.6 shares of this stock in order to hedge the options sold.
Most likely because they are directly financially benefiting from a financial managers good performance through their shares of stock.