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3 years ago

Ignoring taxes what is the effect on earnings in the year after the shares are granted to executives

Business

1 answer:

ipn [44]3 years ago

4 0

Answer: C. $40 million.

Explanation:

By granting them 15 million shares subject to forfeiture if employment is terminated within three years, the company is compensating them.

The total amount that they will be compensated with has to be apportioned over the 3 years as an expense that will reduce earnings per year.

Total compensation = No. of shares * fair value of shares

= 15,000,000 * 8

= $120,000,000

Apportioned over 3 years;

= 120,000,000/3

= $40,000,000

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Robinson's has 24,000 shares of stock outstanding with a par value of $1 per share and a market price of $40 a share. The balanc

Zina [86]

Answer:

Find attached question with multiple choices

The third option ,72,000 shares, is the correct answer.

Explanation:

A stock split refers to redenomination of shares by increasing the number of shares and proportionately reducing the number par value per share.

A 3-1 share split means that one prior share now commands three shares while the price of one share is apportioned between the three shares

Robinson now 3/1*24,000 shares=72,000 shares

One previous share was $1 par value but the three new shares would $1/3=$0.33 per share instead of the previous $1 par value

Download xlsx

7 0

2 years ago

Suppose net exports decreases by $100 million due to a slump in foreign economies. If the value of the multiplier is 2, what hap

iVinArrow [24]

Answer:

It shifts to the left by $200 million at each price level

Explanation:

Given that,

Multiplier = 2

Net exports decrease by $100 million

Change in aggregate demand is calculated as follows:

Multiplier = Change in Aggregate Income (ΔY) ÷ Change in Exports (ΔX)

2 = ΔY ÷ (-$100)

ΔY = -$200

Therefore, the national income will fall by -$200 and hence the aggregate demand will fall by -$200 . Hence, the aggregate demand curve will shift to the left.

3 0

2 years ago

A stock has a current annual dividend of $6.00 per year, and it is expected to grow by 3% (0.03) a year. It is expected that two

yulyashka [42]

Answer:

$93.20

Explanation:

Given the following from the question

Future value of stock = $90

PV Factor = Future Value ÷ (1+ interest rate %)

Hence, we have Present value of stock as => 90 ÷ (1.03) = $87.378640777

Present value of dividends = 6 ÷1.03 = $5.8252427184

Total of present value of stock and dividend =$87.378640777 + 5.8252427184 = $93.20

Hence, in this case, the correct answer is = $93.20

6 0

3 years ago

Henry Josstick has just started his first accounting course and has prepared the following balance sheet and income statement fo

Brut [27]

Answer:

INCOME STATEMENT

Net sales $710

Cost of goods sold ($585)

Selling, gen & admin expenses ($39 )

Depreciation ($13)

EBIT $73

Interest expense ($26 )

Taxable income $47

Taxes ($16 )

Net income $31

Balance Sheet

Property, plant, and equipment $525

Less accumulated depreciation ($121)

Net fixed assets $404

Inventories $51

Cash $16

Receivables $40

Total current assets $107

Total Assets $511

Shareholders’ equity $94

Long-term debt $355

Payable $36

Debt due for repayment $26

Total current liabilities $62

Total liabilities $417

Total liabilities & shareholders’ equity $511

Explanation:

Sales and Expenses balances are included in Income statement. Assets, Equity and Liabilities balances are included in the balance sheet.

5 0

2 years ago

Keira is in the market for a type of goods with unique characteristics that appeals to a limited number of consumers and require

Savatey [412]

The correct answer would be option B, Specialty Goods.

Keira is in the market for a type of goods with unique characteristics that appeals to a limited number of consumers and requires significant effort and money to purchase. Keira is most likely in the market for Specialty Goods.

Explanation:

There are products in the market that have certain characteristics that are appealing to a limited number of people. Such products require not only effort to purchase, but also a significant amount of money is needed.

Specialty products are usually high in price because of their unique characteristics, and that is why they are not easily available in the market as they are needed by a limited number of people.

Specialty products may include the following:

Luxury Cars
Luxury Clothing
High Fashion Clothing
Exotic Perfumes
Professional Photographic Equipment, etc.

Learn more about Specialty Products at:

brainly.com/question/14227087

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3 0

3 years ago