Answer:
The net pay is $1048.20
Explanation:
Net pay : The net pay is come when all taxed and deductions is subtracted from the gross earnings
For computing the net pay, we use the following equation which is shown below:
= Gross earnings - FICA OASDI - FICA medicare - federal income tax - state income tax
where,
Gross earnings is $1,200
FICA OASDI = 6.2% of $1,200 = $74.4
FICA medicare = 1.45% of $1,200 = $17.4
Federal income tax = $50
State income tax = $10
Now, put these values to the above equation
So, the value would be:
= $1,200 - $74.4 - $17.4 - $50 - $10
= $1048.20
Hence, the net pay is $1048.20
Answer:
Diluted earnings per share is $2.87
Explanation:
The extent to which the option would dilute the earnings per share to the extent of the difference between the option of price and the share market price.
The shares that are capable of dilute the earnings can be computed thus:
Market price-option price/market price*outstanding options shares
market price is $36
option price is $30
outstanding options shares is 12,600
($36-$30)/$36*12,600=2,100 shares
Diluted earnings per share=$602,000/(208,000+2100)=$2.87
Answer: C. A purchase order
Explanation:
I’m right
Answer:
0.3797 or 37.97%
Explanation:
According to the scenario, computation of the given data are as follow:-
Wants Rate on return on investment = 50%
Expected value of return on investment = invested amount × (1+g)^t
= $1,000,000 × (1+50%)^5
= $1,000,000 × 7.59375
= $7,593,750
Similar venture would achieve valuation of $20,000,000 for $2,000,000. We can expect that company would achieve similar valuation of $20,000,000 in 5 years from now.
Investor’s share value at 5 years = $7,593,750 ÷ $20,000,000
= 0.3797 or 37.97%
Answer:
d. allow most participants to routinely earn high returns with low risk
Explanation:
In the financial markets there is always an element of risk in transactions. Generally speaking the higher the risk the higher the gain.
Low risk instruments have low returns on investment. Even for these low risk assets sometes the risk can be high for example if a client has a fixed deposit with a bank, and the bank liquidated. The client may not get his full funds invested back.
High risk markets like the forex market has one of the highest returns on investment, but high risk can also make an investor lose substantially.