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Fudgin [204]
3 years ago
10

A company's issued share capital throughout an accounting period consists of 500,000 common shares of 20 cent each and 100,000 p

reference shares of $1. If net income after tax for the period is $160,000 and the preference dividend is $10,000 then the basic EPS for the period is: a. $0.30 b. $0.33 c. $0.31 d. $0.32
Business
1 answer:
ella [17]3 years ago
7 0

Answer:

a. $0.30

Explanation:

Basic Earning Per Share (BEPS) = Earnings Attributable to Holders of Common Stock ÷ Weighted Average Number of Common Stock.

Earnings Attributable to Holders of Common Stock calculation :

Net income after tax for the period                            $160,000

Less Preference Dividend                                           ($10,000)

Earnings Attributable to Holders of Common Stock $150,000

Weighted Average Number of Common Stock calculation :

Outstanding common shares                                      500,000

Therefore,

Basic Earning Per Share (BEPS) = $150,000 ÷ 500,000

                                                     = $0.30

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Dave and his partner are studying the strengths and weaknesses of their construction business, Ajax Construction, as well as res
jenyasd209 [6]

Answer:

SWOT Analysis.

Explanation:

Dave and his partner are studying the strengths and weaknesses of their construction business, Ajax Construction, as well as researching the opportunities and threats in the external environment. Dave and his partner are conducting a SWOT analysis. In SWOT analysis, we analyse our strengths and weaknesses, which comes from inside and we evaluate outside environment which can pose opportunities and threats on us. SWOT analysis is one the basic tool which can tell us what needs to be corrected and where we have to perform better and what segments we should serve, what new product we should enter in our portfolio. It also tell us what business we could be in and what business we should be in.

5 0
3 years ago
The arrival of personal computer technology gave rise to client server networks that replaced traditional mainframe and minicomp
pishuonlain [190]

Answer:

The correct answer is letter "B": technological paradigm shift.

Explanation:

A paradigm shift takes place when the is a change in the methods and practices that were traditionally used and were conceived as main references due to the introduction of new ideas. Technological paradigm shifts are those caused by the creation of new technology that abruptly alters the market.  For instance, the introduction of e-mails replaced faxes and courier services for mailing.

6 0
3 years ago
True or False: A tax cut that will last for only one year will have a greater impact on aggregate demand than a tax cut that is
gavmur [86]

A tax cut that will last for only a year will not have a huge effect on the aggregate demand as the aggregate demand increases only when the tax cut is permanent.

The given statement is false.

<h3>What is a tax?</h3>

A tax is a liability imposed on the taxpayer to pay a specified sum to the government based on the income they have earned in the previous year.

When the cutting of taxes becomes permanent in the country, then the citizens can start to acquire more which will increase the spending. The families will expect that the tax cuts are for the longer term which now induces them to buy and spend more and also act as an addition to their incomes. This whole impact would eventually lead to rising in aggregate demand.

Therefore, the demand increases when the tax cuts are permanent rather than when tax cuts are for only one year.

Learn more about the tax cut policies in the related link:

brainly.com/question/13924294

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5 0
2 years ago
The business analyst for Video Sales, Inc. wants to forecast this year's demand for DVD decoders based on the following historic
Dmitriy789 [7]

Answer:

d) 420

Explanation:

In three-year weighted moving average with weights of 0.5, 0.3, and 0.2, the forecast can be calculated using the following formula

Forecast(This year) = 0.5*Demand(last year) + 0.3*Demand(2 years ago) + 0.2*Demand(3 years ago)

Forecast(This year) = 0.5*300 + 0.3*500 + 0.2*600

Forecast(This year) = 150 + 150 + 120

Forecast(This year) = 420

6 0
3 years ago
Define the following terms: a. Cost of debt b. Cost of equity c. After-tax WACC d. Equity beta e. Asset beta f. Pure-play compar
gtnhenbr [62]

Answer: The answers are explained below.

Explanation:

• Cost of debt: The cost of debt is the interest rate that a company is charged on its debts. It is the interest paid on bonds, loans etc. The cost of debt is usually the before-tax cost of a debt.

• Cost of equity: The cost of equity is the return a firm pays to its equity investors e.g shareholders in order to reward them for the risk taken by investing their capital. Companies need capital to operate and grow hence, individuals and organizations who provide funds to such companies are rewarded.

• After tax WACC: The Weighted Average Cost of Capital (WACC) is a firm's combined cost of capital including preferred shares, common shares, and debt after the deduction of tax.

• Equity Beta: It measures the sensitivity of the stock price to changes in market. Equity Beta is also called levered beta.

• Asset beta: It is the beta of a firm without the effect of debt. It is a company's volatility of returns without its indebtedness.

• Pure play comparable: The pure play comparable is the taking of the beta estimate of another company that is comparable and in same line of business.

• Certainty equivalent: It is the guaranteed return that an individual would take now, rather than awaiting a higher but uncertain return later in the future.

3 0
3 years ago
Read 2 more answers
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