<span>The basic earning per a share can be calculated by dividing the net income after taxes by the number of shares outstanding. Thus we have that the basic earning per share is 3,750,000/18,250,000 = .20547 dollars per share. The basic earning per share for peak performance is .205 dollars per share.</span>
Answer:
The answer is False
Explanation:
Since the 70 percent of preferred dividends received by a company is excluded from taxable income, the component cost of equity for a corporation which pays half of its revenue out as a common dividends and half as preferred dividends should ,technically be.
Answer:
Union power
Explanation:
Union members usually earn a higher salary than non-unionized employees carrying out the same tasks in similar companies due to union power. Basically unions exercise their power of representing workers through their ability to call on a strike. Also, unions negotiate wage increases on a yearly basis, while non-unionized workers must negotiate on their own.
Answer:
Sales Revenue 212,000
Variable Cost (63,000)
Rent Expense (43,000)
Depreciation Expense (23,000)
Income before taxes 83,000
Income tax expense <u> (16,600) </u>
Net Income 84,800
Cash from operating activities 107,800
tax-shield from depreciation 4,600
Explanation:
Cash flow from operations (indirect method)
net income 84,800 + depreciation expense = 107,800
The depreciation provides a tax shield as they are an accounting concept. The depreciation expense did not involve the outflow of cash but, it is a taxable deduction therefore generates a tax-shield.
23,000 x 20% = 4,600
Answer:
b. cannot test his theory because his observations violate the ceteris paribus assumption
Explanation:
As per the law of supply, when price of an input rises, quantity supplied of a good falls, keeping other factors affecting supply as constant (ceteris paribus).
Leather and Shoes are complimentary goods in the sense that leather serves as an input for the product i.e shoes. So if the price of leather rises, production of shoes would fall, keeping other factors constant.
When the price of an input rises, the quantity supplied falls, keeping other factors affecting supply as constant.
In the given case, the price of inputs has increased and yet the production of shoes has increased owing to an advancement in the technology. Technology is a different determinant of quantity supplied and considered as an other factor affecting supply.
