Answer:
1.
Determine the reporting Date and period. 2. Identify your assets. 3. Identify your liabilities.
4. Calculate shareholders' equity.
Add total liabilities to total shareholders' equity and compare to the assets.
Answer:
The number of shares that Brick should use to calculate 2015 diluted earnings per share are 202,000 shares
Explanation:
The computation of the number of shares are shown below:
= January 1 shares + may 1 shares + convertible cumulative preferred stock
= 170,000 shares × 4 months ÷ 12 months + 200,000 shares × 8 months ÷ 12 months + 12,000 shares
= $56666.67 + $133,333.33 + $12,000
= $202,000 shares
The 4 months are calculated from January 1 to May 1, 2015
And, the 8 months are calculated from May 1 to December 31
Answer: reduced by $80 billion
Explanation:
An expansionary gap is when the actual output is more than the potential output. From the question, we are told that an economy is operating with output $400 billion above its natural level, and fiscal policymakers want to close this expansionary gap and that the central bank agrees to adjust the money supply to hold the interest rate constant, so there is no crowding out.
We are also given the marginal propensity to consume is 4/5, and told that the price level is completely fixed in the short run.
To close the expansionary gap, the government would need to reduce its spending. To solve this, we have to calculate the multiplier. This will be:
Multiplier = 1/(1 - MPC)
= 1/(1 - 4/5)
= 1/1-0.8
= 1/0.2
= 5
Therefore, the government expenditure or spending will be reduced by:
= $400 billion/5
=$80 billion
Answer:
Results are below.
Explanation:
To determine whether the project should be accepted or not, we need to calculate the net present value. <u>If the NPV is positive, the project should be accepted.</u>
<u>To calculate the NPV, we will use the following formula:</u>
NPV= -Io + ∑[Cf/(1+i)^n]
Cf1= 9,800/1.0975= 8,929.38
Cf2= 16,400/1.0975^2= 13,615.54
Cf3= 21,700/1.0975^3= 16,415.20
Total= $38,960.12
NPV= -38,700 + 38,960.12
NPV= 260.12
<u>The project is profitable. </u>
Answer:
Option 4- Interest on Interest
Explanation:
Look we earned $8 in the first year which we invested in the same business. Okay now we again earned 8% on this $100 and $8 invested in the second year. The 8% on the $8 is $0.64 which is the interest earned on the interest invested in the previous year.
