Answer:
a. 19,048
b. 2.1
c. $21
d. Before $2
After $2.1
e. Explanation of tax implication is below
Explanation:
a. Number of shares = Dividend per share × Number of shares outstanding ÷ cost per share
= 1 × 400,000 ÷ $21
= 19,048
b. Earning per share after repurchase = earnings ÷ (shares before-shares outstanding)
= $800,000 ÷ (400,000-19,048)
= 2.1
c. Market Price = Earning per share Price × Earning
= 2.1 × 10
= $21
d. Earning per share before = Earnings ÷ Before shares
= $800,000 ÷ 400,000
= $2
Earning per share after repurchase = $2.1
After share repurchase the earning per share has increased.
e) Price increased 21 dollars in share repurchased. The price remain constant in dividend payout the amount but additional 1 dollar in dividend the investors gains. If dividend is lesser than tax on capital gain then it will become drawback over collect dividend and vice versa.
Answer:
The calculation will be more accurate, because the base year is the oldest.
CPI is calculated as
(P_n / P_base - 1)*100
as:
P_n prices at time n
The mathematical reason why it is better to take the oldest year is that % growth works better
Answer: d. 30%
Explanation:
Global brands are companies that have achieved international success such that they are recognised in many other countries apart from their own and have many customers in other countries as well.
However, simply being known abroad does not classify a company as a global brand. The company must be generating sufficient revenue from their operations outside as a proportion of their total revenue their home country with sufficient meaning at least 30% of their revenue.
Answer:
False
Explanation:
While preparing the raw material budget for the period we calculate the total purchases to be made in the period concerned to meet the demand of raw material.
Demand in the period concerned = Total raw material required in production in current period + Total balance of inventory to be kept as closing inventory of current period - The opening available balance of inventory.
This is equal to the purchases to be made.
Thus, closing inventory is added and opening is deducted.
Therefore, the statement is question is not correct and is therefore, false.
