Answer:
Nashville's residual income = Net profit - Imputed cost of capital
= $3,600,000 - 12% x $9,500,000
= $3,600,000 - $1,140,000
= $2,460,000
Explanation:
Residual income is equal to net income minus imputed cost of capital. Imputed cost of capital is the product of interest rate and capital invested.
Answer:
The company's earnings per share is $ 4.
Explanation:
EPS earning per share is an indicator widely used by investor of stock market in order to determine market value of their investment. EPS is directlty proportional to stock price.
EPS is calculated by dividing net income with outstanding common shares.
EPS = Net income/ outstanding common shares
EPS = 34,000/8,500 = $ 4
Answer:
$5,000 increase
Explanation:
As Martha has the main home in Houston and in the current year she rented it for only 10 days, this means that house is rented for less than 14 days and will be still treated as her personal residence, therefore, no deduction will be available for Martha against her rental income. Martha's Adjusted gross income will be increased by an amount of $5,000.
Answer and Explanation:
The English auction is a unique process of selling items, under which the auction starts at a low price and goes up to the maximum price and the item is sold to the highest bidder.
In this situation, Judi makes the highest bid which is worth $1,800, therefore, the cabinet will be sold to Judi at price $1,800 .
Professor Simmons will be discussing Convergence Theory. It states that all industrial systems, whether capitalist or communist, would converge in their social, political and economic systems because of the determinant effects of technological development.
