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:
By the midpoint formula, his income elasticity of demand for pro football game tickets is equal to <u>+3</u>, and football game tickets are <u>normal</u> goods.
Explanation:
The formula for calculating income elasticity of demand using the midpoint method is:
income elasticity of demand = {change in quantity demanded / [(old quantity + new quantity) / 2]} / {change in income / [(old income + new income) / 2]}
= {2 / [(2 + 4) / 2]} / {10,000 / [(40,000 + 50,000) / 2]} = (2 / 3) / (10,000 / 45,000) = 0.67 / 0.222 = 3
when the income elasticity of demand is higher than 1, the goods are normal goods.
Answer:
Implementation Phase
Explanation:
After Planning, it is imporrant to carry out clarified Implementation to successfully carry out what need to be done and when. This is important to ensure your plan is achieved without fault. Sweatshop labour which is a situation where workers are employed at low wages and mostlyunder unhealthy conditions to produce products usually occurs during the implementation phase.
Since carotenoids are tightly-bound in proteins in our foods, our body only typically absorbs about 20% - 40% of what is consumed. However, as the amount of carotenoid eaten increases, this proportion further decreases/ drops-- to 10% or less.
<span>Carotenoids are plant pigments which are responsible for the bright red, yellow, and orange colors of fruits and vegetables, such as carrots, pumpkins, squash, and mangoes. Certain types of carotenoids form Vitamin A, which is essential to health. Moreover, carotenoids exhibit antioxidant activity by protecting cells from free-radical damage. </span>
Answer:
$380,280
Explanation:
Calculation for the maximum dollar amount
Using this formula
Maximum dollar amount =Annual cash inflows*Present value Annual amount
Where
Annual cash inflows=$120,000
PV Annual 4 (10%)=3.169
Let plug in the formula
Maximum dollar amount=$120,000*3.169
Maximum dollar amount=$380,280
Therefore the maximum dollar amount the company would be willing to spend for the machine will be $380,280
