He has to have negative marginal returns. I hope this helps :)
Answer:
a. 50, which is high by historical standards.
Explanation:
a. 50, which is high by historical standards.
It is high because current price is high than earnings.
Earning yield is the reciprocal of price earning ratio that is = 1/ (P/E ratio) expressed as a percentage.
So
PRice Earning ratio = Market price per share/ Earning per share
Price Earning ration= $20/ 0.4 = 50
Earning per share= Earnings/ No of shares outstanding
EPS= $ 1 million/$ 2.5 million = 0.4
Answer:
50 cartons of eggs
Explanation:
The comparative advantage is a principle in which a country specializes in the production a good in which it has a lower opportunity cost than others.
Bottles of milk cartons of eggs
India 15 50
Indonesia 25 35
In this situation, the opportunity cost for India of producing 1 bottle of milk is producing 3.33 cartons of eggs. The opportunity cost for Indonesia of producing 1 bottle of milk is producing 1.4 cartons of eggs. This means that Indonesia has a lower opportunity cost and a comparative advantage in producing bottles of milk.
In the other part, the opportunity cost for India of producing 1 carton of eggs is producing 0.3 bottles of milk and the opportunity cost for Indonesia of producing 1 carton of eggs is producing 0.71 bottles of milk. This means that India has a lower opportunity cost and a comparative advantage in producing cartons of eggs.
According to this, India would specialize in producing eggs as it has a comparative advantage and the country will produce 50 cartons of eggs.
Answer:
C. A change from expensing certain costs to capitalizing these costs due to a change in the period benefited, should be handled as a change in accounting estimate.
Explanation:
The statement above describes or the other hand talks about expenditure and capitalization.
Therefore, expenditure is explained as either capitalized as a cost of the asset on the company’s balance sheet or it is expensed in the income statement of the incurred period.
Under IFRS, the following rules govern the categorization of the expenditure as an asset:
If the expenditure is expected to give economic benefits in future over several accounting periods.
If one can measure the cost reliably. Also, increases the assets on the company’s balance sheet.
Recorded on the cash flow statement as a cash outflow for investing.
