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3 years ago

How does the health of the economy affect the decisions of business owners?

Business

2 answers:

Komok [63]3 years ago

5 0

They are not a stressed in a good economy and have a clearer mind then in a bad economy

marissa [1.9K]3 years ago

5 0

The health of the economy affects the decisions of business owners because when the economy is functioning properly, the decisions of business owners are significant and their businesses will gain more profit. However, when the healthy of the economy is defective, it is difficult for business owners to create decisions that will contribute towards their businesses.

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Baldwin Company had 40,000 shares of common stock outstanding on January 1, 2018. On April 1, 2018, the company issued 20,000 sh

Sindrei [870]

Answer:

$56,667

Explanation:

Diluted EPS is a measure used to assess the quality of a company's earnings per share (EPS). Diluted EPS takes into calculation all convertible securities such as convertible bonds or convertible preferred stock, which are changed into equity or common stock.

The stock options have a value of (10,000 × $10)/$12 = $8,333 on conversion.

To calculate the Diluted Earnings per share,

40,000 + (20,000 × 9/12) + (10,000 - 8,333) = $56,667.

7 0

4 years ago

A twenty-acre park was created to give residents a place to hike, bike, and enjoy other recreational activities. Kathy was hired

TiliK225 [7]

Answer:

Explanation:

8 0

3 years ago

Read 2 more answers

Divided Furniture Inc. has 11,000 bonds outstanding with a market price of $104 per bond. The firm also has 35,000 preferred sha

mote1985 [20]

Answer:

Market Value of equity = Price of equity*Number of shares outstanding

Market Value of equity = 36*45000

Market Value of equity = 1620000

Market Value of Bond = Par value*bonds outstanding*%age of par

Market Value of Bond = 100*11000*1.04

Market Value of Bond = 1144000

Market Value of Bond of Preferred equity=Price*Number of shares outstanding

Market Value of Bond of Preferred equity=52*35000

Market Value of Bond of Preferred equity = 1820000

Market Value of firm = Market Value of Equity + Market Value of Bond+ Market Value of Preferred equity

Market Value of firm = 1620000+1144000+1820000

Market Value of firm = 4584000

Weight of equity = Market Value of Equity/Market Value of firm

Weight of equity = 1620000/4584000

Weight of equity = 0.3534

Weight of debt = Market Value of Bond/Market Value of firm

Weight of debt = 1144000/4584000

Weight of debt = 0.2496

Weight of preferred equity = Market Value of preferred equity/Market Value of firm

Weight of preferred equity = 1820000/4584000

Weight of preferred equity =0.397

Cost of equity

Price= Dividend in 1 year/(cost of equity - growth rate)

36 = 2.2/ (Cost of equity - 0.04)

Cost of equity% = 10.11

After tax cost of debt = cost of debt*(1-tax rate)

After tax cost of debt = 8*(1-0.4)

After tax cost of debt = 4.8

Cost of preferred equity

Cost of preferred equity = Preferred dividend/price*100

Cost of preferred equity = 2.2/(52)*100

Cost of preferred equity = 4.23

WACC = After tax cost of debt*W(D)+cost of equity*W(E)+Cost of preferred equity*W(PE)

WACC = 4.8*0.2496+10.11*0.3534+4.23*0.397

WACC = 6.45%

7 0

3 years ago

________ is the management of the network of interconnected steps involved in the provision of product and service packages.

inn [45]

Answer:

Management

Explanation:

4 0

3 years ago

In 2017, Scranton, Inc. sold 2,000 carpets for $50 each. The carpets carry a two-year warranty for repairs. Scranton estimates t

vodomira [7]

Answer:

$3,000

Explanation:

Inventory Sold 2,000*$50=$100,000

Warranty Expense $100,000*3%=$3,000

Therefore $3,000 would be reported in warranty liability account.

When any claim for warranty is reported,the liability will be set off by debiting it and corresponding effect to inventory or stores will be taken.

8 0

4 years ago