Answer:
B. Step 4, Develop the Plan
Explanation:
Step 4: Plan Development
Develop and Analyze Courses of Action
This step is a process of generating, comparing, and selecting possible solutions for achieving the goals and objectives identified in Step 3. Planners consider the requirements, goals, and objectives to develop several response alternatives. The art and science of planning helps determine how many solutions or alternatives to consider; however, at least two options should always be considered.
Answer:
The book value per share and earnings per share is $2.1809 and $1.025 respectively.
Explanation:
For computing the book value per share, we have to used the market to book ratio formula which is shown below:
Market to book ratio = Market price per share ÷ book value per share
9.4 times = $20.50 ÷ book value per share
So, book value per share = $20.50 ÷ 9.4 times
= $2.1809
Now, the earning per share is calculated by using a PE ratio which is displayed below:
PE ratio = Share price ÷ Earning per share
20 times = $20.50 ÷ Earning per share
So, earning per share = $20.50 ÷ 20 times
= $1.025
Hence, the book value per share and earnings per share is $2.1809 and $1.025 respectively.
Date of Declaration:
Dr: Retained Earnings 22,850,000
Cr: Common Stock Dividend Distributable 350,000
Cr: Paid-in Capital in Excess of Par-Common 22,500,000
500,000*45 = 22,500,000
22,500,000+350,000=22,850,000
Date of Distribution:
(70%*500,000) = 350,000
Dr: Common Stock Dividend Distributable 350,000
Cr: Common Stock 350,000
Answer:
The firm should increase output and reduce price
Explanation:
For a monopolist, there can be one of the following three scenarios at a time point in time:
Scenario one, MR = MC: For a monopolist, profit is maximized at the point where marginal revenue (MR) is equal to to marginal cost (MC), i.e. where MR = MC.
Scenario two, MR < MC: But when the MR < MC, it indicates that the monopolist is currently producing a higher quantity of output and it is not maximizing profit. In order to maximize profit, the monopolist has to reduce output until MR = MC.
Scenario three , MR > MC: But when the MR > MC, it indicates that the monopolist is currently producing a lower quantity of output and it is not maximizing profit. In order to maximize profit, the monopolist has to increase output until MR = MC. Also, the monopolist has to reduce price in order to sell the increased quantity of output.
From the question, the monopolist falls into scenerio three as MR > MC, i.e. $45 > $35. Therefore, the monopolist should increase output until MR = MC and reduce price in order to maximize profit.
For calculating the replacement value of the house the insurance company keeps in mind few things like the location of the house, year of construction, the up-gradation and the type of gradation.
<u>Explanation:</u>
These are some of the factors insurance companies take into account when calculating the replacement value of a home:
Location of the home, Year of construction, Year of last major upgrades, Types of upgrades, Total square footage of the home, Foundation and building materials for the home.
The 80% rule refers to the fact that most insurance companies will not fully cover the cost of damage to a house due to the occurrence of an insured event (e.g., fire or flood) unless the homeowner has purchased insurance coverage equal to at least 80% of the house's total replacement value.