Answer: Option B
Explanation: Earnings per share is calculated by dividing net income available to common shareholders with the weighted average number of shares.
Deduction of preferred dividends from net income is done only when dividends are declared by the entity, otherwise not. Preference shareholders have priority over common shareholders in case of dividends, so it will result in reduction of earnings to common shareholders but only when the dividends are declared and distributed.
Answer:
1.The money demand will rise by 1.154%
2. The money demanded will fall and for a 1% increase in interest , the money demanded will fall by 0.38%
Explanation:
1. Money demand function
ln(m) = β0 +β1 ln(GDP)+β2R
Suppose β1 = 1.5 , β2 = −0.04 , GDP = $ 100 & R = 3%
ln(m) = 1.5 ln ($100) - 0.04 X 0.03
ln(m) = 6.91
m = 1002.247
Suppose the GDP increases by 1%; the new GDP will be = $ 101
ln(m) = 1.5 ln ($101) - 0.04 X 0.03
ln(m) = 6.92
m = 1013.81
If the GDP increases by 1% ,the money demand will rise by 1.154%
2.
If the interest rate increases from 3% to 4%
ln(m) = 1.5 ln ($100) - 0.04 X 0.04
ln(m) = 6.906155
m = $ 998.400
If the interest rate rises from 3% to 4% , the money demanded will fall and for a 1% increase in interest , the money demanded will fall by 0.38%
Answer:
TRUE
Explanation:
It is true that under the all-events test, in addition to specifying that all events to establish the liability must have occurred, the test also provides that the business must be able to determine the amount of the liability with reasonable accuracy
Under Sec. 461(h), a three-prongall-events test is met when
(1) all events have occurred that establish the fact of the liability;
(2) <u>the amount of the liability can be determined with reasonable accuracy</u>; and
(3) economic performance has occurred.
Answer:
d
Explanation:is wrong i got it wrong on edg
