Importance of hotel managers in points
1 answer:
You might be interested in
Answer:
shift demand and supply for loanable funds to the right (up), increasing interest rates.
Explanation:
According to the Fisher hypothesis when there is an increase in the expected inflation there is an equal increase in nominal interest rates.
As interest rates rise demand and supply for loanable funds will rise. This is illustrated in the attached diagram. Interest rate moves from i0 to i1.
Inflation is a reduction in the purchasing power of money. When inflation increases money regulation agencies reduce supply of money as a way to reduce price increase. This in turn reduces the amount of loanable funds commercial banks have to give out
Answer:
$28.5
Explanation:
Earnings per share is calculated for Equity shares.
And the treasury stock is not included.
Total equity shares in number = 11,000 - 1,000 (Treasury stock)
= 10,000 shares
Total earnings = $200,000
Further provided that dividend to preference shareholders is paid.
Dividend on preference capital is fixed, that is the rate multiply the par value, dividend is not paid on security premium amount.
Preference dividend = 5,000 $50
6% = $15,000.
The information provided for share issue rates is of no importance of equity, whereas the relevant number provided is important.
Thus earnings after preference dividend = $200,000 - $15,000 = $285,000
Earnings per share = $285,000/10,000 = $28.5 per share.