Answer:
A company that establishes a profit-sharing plan must make annual contributions to the plan, even if the company fails to earn a profit during the year.
Explanation:
A profit sharing plan is defined as the type of contribution plan where the plan helps in saving for the retirement of the employees while providing them the flexibility of the plan features. It is a way for the owners of the business to share the profits with the investors and also a great way to attract investment in his business.
In a profit sharing plan, the organization does not have to make or contribute any amount to the plan annually. Such a plan is best suited for the companies which experiences a fluctuating cash flow.
Answer:
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Out of order means they aren’t working out of inventory means there is no more inventory left in that room
Answer:
Emerson Inc. should declare $2.5 per share.
Explanation:
Dividend Payout ratio is the ratio of distribution of net income earned during the period among the stockholders.
As per given data
Net Income = $1,250,000
Payout ratio = 45%
Dividend payment = 1,250,000 x 45% = $562,500
Dividend per share = $562,500 / 225,000 = $2.5 per share
Answer:
Total market value of shares = 1.25 billion x $20 = $25 billion
Market value of shares after share repurchase = $25 billion - $5 billion
= $20 billion
No of shares after repurchase = <u>Market value after repurchase</u>
Market price per share
= <u>$20 billion</u>
$20
= 1 billion shares
The correct answer is B
Explanation:
The total market value of shares is obtained by multiplying the number of shares outstanding by the market price per share. The market value after repurchase is total market value of shares less value of shares repurchased. The number of shares outstanding after repurchase is the market value after repurchase divided by the market price per share.