You are considering an investment in IBM stock and wish to assess the firm's long-term debt-paying ability and its use of debt financing. All of the following ratios can be used to assess solvency except: Multiple Choice 0 Number of times interest is earned. Debt to assets ratio Oo oo O Debt to equity ratio Net margin
Answers
The answer is Net Margin. Net Margin is not the ratio that can be used to assess solvency in the given question. The Net Margin ratio is used to assess profitability. It calculates the percentage of sales that turn into net profits, after all the deductions and expenses have been accounted for.
A higher net margin ratio shows that the company can convert a higher percentage of its sales into profits, which is good for the company. So, in this case, the solvency ratios that can be used to assess the long-term debt-paying ability of IBM and its use of debt financing are the debt to equity ratio, debt to assets ratio, and the number of times interest is earned ratio. The debt to equity ratio shows the proportion of debt and equity being used by a company to finance its assets. The debt to assets ratio shows the amount of total assets that are being financed by debt. Lastly, the number of times interest is earned ratio shows how many times the company can cover the interest charges on its debts. These solvency ratios help the investor to make an informed decision while investing in IBM's stock.
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Related Questions
HEY PLEASE SOMEONE HELP I NEED TO SUBMIT THIS WORK IN 30 MINUTES PLEASEEE!!!
Which method of distribution is suitable for sale of Coke in your school? Justify your answer.
Answers
The Coca-Cola Company sells its products to bottling and canning operations, distributers, fountain wholesalers and some fountain retailers. They then distribute them to retail outlets, corner stores, restaurants, petrol stations and many more.
When I had this question I found the link witch is on the document very helpful.
I hope this helps.
Larkspur Furniture uses a perpetual inventory system and pays GST on an accrual basis. Larkspur engaged in the following transactions during July 2021. Transactions are inclusive of GST where relevant.
July 2 Purchased inventory for cash, $1 045
5 Purchased store supplies on credit for $495
8 Purchased inventory of $3 300 on account. Freight charges of $253, were added to the purchase invoice.
9 Sold goods for cash, $1 320. The cost of these goods was $700.
10 Received the electricity bill, $302.50.
11 Returned $220, of the inventory purchased on 8 July. It was damaged in transit.
12 Purchased inventory for cash for $3 663.
14 Sold inventory on credit terms $11 160, less a $600 quantity discount (cost, $5000). Note: GST applies after the discount.
24 Received returned inventory from the 14 July sale, $440. Larkspur Furniture had despatched the wrong goods by mistake. A credit note was issued. Larkspur’s cost of the inventory received was $250. Ignore previous quantity discount.
Borrowed $5,000 from the bank. Signed a bill payable to the bank for this amount.
Purchased a computer on credit for $2,200.
Required:
1. Journalise the preceding transactions for Larkspur Furniture using multi-column special journals.
Post transaction amounts to ledger accounts and prepare a trial balance.
Complete the GST Section of the Business Activity Statement for July. As you are only reporting for one month, you will need to use the quarterly reporting option on the BAS statement.
Journalise payment of GST to the ATO on August 1, 2021.
A junior accountant is confused about why GST appears on the statement of financial position but not the statement of financial performance. Explain how and why this happens.
Chart of Accounts
101 Cash at bank 203 GST collected
102 Inventory 204 GST paid
103 Store supplies 401 Sales revenue
104 Accounts receivable 402 Sales returns and allowances
150 Office Equipment 501 Cost of goods sold
201 Accounts payable 601 Freight-in
202 Bill payable 602 Electricity expense
Answers
Goods and services tax (gst) is a value-added tax applied to the sale of goods and services. it is collected by businesses on behalf of the government.
when a business collects gst from its customers, it creates a liability called gst collected (account 203). this liability represents the amount of gst collected but not yet remitted to the tax authorities.
on the statement of financial position (balance sheet), the gst collected is reported as a liability because it represents an amount owed to the tax authorities. it reflects the obligation of the business to remit the collected gst.
on the other hand, the statement of financial performance (income statement) focuses on the revenue, expenses, and profitability of the business. since gst is a tax collected on behalf of the government and not a revenue earned by the business, it is not considered as part of the business's income or expenses. the payment of gst to the tax authorities is recorded as a separate transaction outside the statement of financial performance. this transaction is typically journalized as a decrease in the gst collected liability (account 203) and a decrease in the cash or bank account (account 101). it represents the settlement of the gst liability with the tax authorities.
again, please note that the specific task you provided requires detailed knowledge of larkspur furniture's accounts and accounting practices. it would be best to consult an accountant or refer to the company's specific accounting guidelines for accurate completion of the task.
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An investment project that costs $45,000 provides cash inflows of
$8,710 in year 1; $9,560 in year 2; $10,820 in year 3; $7,380 in
year 4 and $9,230 in year 5. What is the NPV of the project if the
co
Answers
The NPV of the project depends on the discount rate and is not provided in the question. Therefore, the NPV cannot be calculated without knowing the discount rate.
The Net Present Value (NPV) of an investment project is determined by discounting the cash inflows and outflows using a specified discount rate. The cash inflows for each year are given, but to calculate the NPV, we need to discount these cash flows back to their present value. The discount rate represents the opportunity cost of capital or the required rate of return for the project. Without the discount rate, it is not possible to calculate the NPV. To calculate the NPV, we would discount each cash inflow using the appropriate discount rate and subtract the initial cost of the investment. The NPV would then be the sum of the present values of the cash inflows minus the initial investment cost. However, since the discount rate is not provided, the NPV cannot be determined.
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an arm loan for 30 years at an annual interest rate of 4% and a balance of $50,000 was made. suppose the market index rises at the end of one year and the new interest rate on the arm is 6%. what is the new monthly payment on the outstanding loan balance for the remaining 29 years?
Answers
The new monthly payment for the remaining 29 years of the loan total is $298.16.
The term "Loan Amount" refers to the sum of money we currently owe you for this mortgage. The loan amount may also include other fees, interest on other fees, defaulted payments, interest on defaulted payments, unpaid principal, and interest on the unpaid principal.
The Initial Monthly Payment (PMT) is calculated using inputs in the first step.
PV = Original loan amount = $50,000
Nper = 30*12
Rate = 4%/12
The Balance after One Year (FV) is calculated utilizing
PV = Initial balance = $50,000
Nper = 1*12
PMT = Calculated in 1st step
Rate = 4%/12
Inputs are used to calculate The New Monthly Payment (PMT).
PV = Balance one year later (calculated in Step 2)
Nper = 29*12
Interest rate = 6%/12
Final Amount = $298.16
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Tickets to a fundraiser are $14 if purchased ahead of time and $25 if purchased at the door. The total amount raised from all ticket sales was $625. If eleven tickets were purchased at the door, how many tickets were purchased ahead of time?.
Answers
($14)(25)=$350
($25)(11)=$275
$350+$275= $625
The activities of people traveling to and staying in places outside their usual environments for not more than one consecutive year for leisure, business, and other purposes is called _____.
transportation
travel
tourism
hospitality
Answers
Answer:
Tourism is the right answer
The set of business activities that add value to goods and services sold to the end consumer is referred to as ______. Multiple choice question. merchandising
Answers
The set of business activities that add value to goods and services sold to the end consumer is referred to as : Merchandising
What is merchandising?Merchandising refers to what is done to promote and sell products once the potential customer is in the store. It is the promotion of the sale of goods that can employ pricing, special offers, display and other techniques designed to influence consumers.
Merchandising consist of any practice which contributes to the sale of products to a retail consumer.
Merchandising includes but not limited to:
Auto dealershipsClothing storesSupermarketsTherefore, the set of business activities that add value to goods and services sold to the end consumer is referred to as merchandising.
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Happy Bank starts with $200 in bank capital. It then takes in $1,000 in deposits. It keeps 15 percent of deposits in reserve. It uses the rest of its assets to make bank loans.
Q(1): Happy Bank (T-Account)
Assets | Liabilities
Reserves = _____. Deposits = _____.
Loans = _____. Bank Capital = _____.
Q(2): Happy Bank's leverage Ratio is ____.
Suppose that 8 percent of the borrowers from Happy Bank default, and these bank loans become worthless.
Q(3): Happy Bank's (New balance sheet)
Assets | Liabilities
Reserves = _____. Deposits = _____.
Loans = _____. Bank Capital = _____.
Q(4): The bank's total assets decline by _____, and the bank's capital declines by _____.
Answers
Q (1): A T-account is a form used in accounting to keep track of the debit and credit sides of transactions. The question requires us to fill in the T-account of Happy Bank, which would tell us about the bank's assets and liabilities. The T-account of Happy Bank is as follows:
Assets: Reserves = 150Deposits = 1000 Loans = 850 Bank Capital = 200 Liabilities:Q (2): The leverage ratio is the ratio of the bank's assets to its capital. Happy Bank's assets would be the sum of its reserves, loans, and deposits. The bank's assets would be the sum of its reserves, loans, and deposits.
Assets = Reserves + Loans + Deposits Assets = 150 + 850 + 1000 Assets = 2000Happy Bank's leverage ratio is calculated as follows:
Leverage ratio = Assets / Bank capital Leverage ratio = 2000 / 200 Leverage ratio = 10Q (3) The bank's new balance sheet would be as follows:
Assets: Reserves = 85 Deposits = 1000 Loans = 765 Bank Capital = 150 Liabilities:Q (4) The question states that 8% of the borrowers from Happy Bank default, and these bank loans become worthless. The bank's total loans = are $850. Therefore, 8% of loans would be:
8/100 × 850 = 68.These loans are now worthless, and the bank's total loans are reduced by $68. The bank's new loans = $850 - $68 = $782. Happy Bank's capital is unchanged from its previous balance sheet.Therefore, the bank's capital is still $200. The bank's total assets decline by $68 (the defaulting borrower's loans). Therefore, the bank's new total assets = $2000 - $68 = $1932.The bank's capital declines by zero. Therefore, the bank's new capital =is $200. Happy Bank's new balance sheet is as follows:
Assets: reserves = 85 Deposits = 1000 Loans = 782 Bank Capital = 200 Liabilities:PLEASE HELP QUICK!!!
Which of the following is an advantage of buying your home over renting?
(1 point)
O You do not have to worry about the housing market in your area.
O The amount you pay each month is set by the terms of your mortgage.
O If something breaks, you have to fix it or pay to have it fixed.
O Your mortgage payments will far exceed the value of your home.
Answers
Answer:
The amount you pay each month is set by the terms of your mortgage.
Explanation:
connexus
Which of the following best describes the law of supply and demand?
A. When a desirable product or service is plentiful, its value increases.
B. Businesses can charge extra for products that people use every day.
C. When there is a high demand for a product, it is hard to supply.
D. When a desirable product or service is scarce, its value increases,
Answers
Answer:
d is you answer
Explanation:
Answer:
D. When a desirable product or service is scarce, its value increases.
Explanation:
Because more people want a product that there is less of, meaning they will raise the price.
A man walks around a circular park 4 times in 12 minutes. The radius of the park is 49m. Find the speed of the man in km/h.
Answers
population a i. is likely to have a higher level of education than population b. ii. is likely to have had a recent decline in infant mortality. iii. is likely to be poorer than population b.
Answers
According to the given statement, population a is likely to have a higher level of education than population b, is likely to have had a recent decline in infant mortality, and is likely to be poorer than population b.
Let us understand these terms in detail: Population a is likely to have a higher level of education than population b: This means that the people in population a are expected to have a higher level of education than those in population b. This can be due to various reasons such as better access to education facilities, better literacy rates, etc.ii. Population a is likely to have had a recent decline in infant mortality: This means that the infant mortality rate in population a has declined recently. This can be attributed to various factors such as better healthcare facilities, better sanitation, etc.iii. Population a is likely to be poorer than population b: This means that the people in population a are likely to have a lower income and standard of living than those in population b. This can be due to various reasons such as a lack of job opportunities, low wages, etc.In conclusion, population a is expected to have a higher level of education than population b, have had a recent decline in infant mortality, and be poorer than population b.
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Downstream costs for a service entity include: i. marketing ii. research and development iii. design iv. customer support O A. i and iv O B. All of the given answers O C. i and iii O D. ii and iii
Answers
Downstream costs for a service entity include: i. marketing, ii. research and development, iii. design, and iv. customer support. All of the given options are correct.
Each component of downstream cost has its own importance that makes the entire service entity thrive in terms of customer satisfaction and value. Hence, the long answer to your question is as follows:
Downstream costs for a service entity include the expenses that occur after the products or services are developed. These costs are incurred when a product or service reaches the consumer or when a customer buys a service. The four components of downstream cost include marketing, research and development, design, and customer support. Each component has a unique purpose in ensuring customer satisfaction, retaining loyal customers, and increasing the customer base.Good customer support can lead to customer satisfaction, which can result in increased customer loyalty and repeat business.In conclusion, the downstream costs of a service entity play a critical role in ensuring that the entity remains relevant and successful. These costs not only enhance customer satisfaction but also boost the service entity’s reputation, retain loyal customers, and increase the customer base. All of the given options are correct.Know more about the Downstream costs
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Need Help
Ted is a single guy who’s living the good life. The spreadsheet below shows Ted’s cash flow for a month.
Based on his monthly cash flow, explain what part of Ted’s financial plan might be missing and why.
Answers
Answer:
Ted's net cash flow is zero. Therefore, he might want to work on managing his income to get a positive net cash flow. There is no indication that Ted is putting any money in savings.
Hope it helps!
an asset used in a four-year project falls in the five-year macrs class (macrs schedule) for tax purposes. the asset has an acquisition cost of $7,800,000 and will be sold for $1,860,000 at the end of the project. if the tax rate is 25 percent, what is the aftertax salvage value of the asset?
Answers
The depreciation of the asset can be calculated using the MACRS schedule for 5-year property, which has the following annual depreciation rates: 20%, 32%, 19.2%, 11.52%, 11.52%. Therefore, the depreciation expense for each year can be calculated as follows:
Year 1: $7,800,000 x 20% = $1,560,000
Year 2: $7,800,000 x 32% = $2,496,000
Year 3: $7,800,000 x 19.2% = $1,497,600
Year 4: $7,800,000 x 11.52% = $897,216
Year 5: $7,800,000 x 11.52% = $897,216
The total depreciation expense over the life of the project is therefore $7,348,032 ($1,560,000 + $2,496,000 + $1,497,600 + $897,216 + $897,216).
The book value of the asset at the end of the project (before considering the salvage value) is $7,800,000 - $7,348,032 = $451,968.
The after-tax salvage value of the asset can be calculated as follows:
Salvage Value = $1,860,000
Tax on Gain/Loss = (Sale Price - Book Value) x Tax Rate
= ($1,860,000 - $451,968) x 25%
= $352,258
After-Tax Salvage Value = Sale Price - Tax on Gain/Loss
= $1,860,000 - $352,258
= $1,507,742
Therefore, the after-tax salvage value of the asset is $1,507,742.
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what makes britain a model of what aristotle called a mixed regime?
Answers
Aristotle's concept of a mixed regime refers to a form of government that combines elements of monarchy, aristocracy, and democracy .
While Aristotle's specific ideas were applied to ancient city-states, certain aspects of the British system can be seen as aligning with his concept of a mixed regime. Here are some reasons why Britain can be considered a model of a mixed regime:
1. Constitutional Monarchy: Britain has a constitutional monarchy where the monarch serves as the head of state, representing a monarchical element in the mixed regime. The monarch's powers are limited and ceremonial, with the majority of political authority residing in elected representatives.
2. Parliamentary Democracy: Britain is known for its parliamentary democracy, where political power is vested in the elected Parliament. The House of Commons, consisting of elected Members of Parliament (MPs), is responsible for making laws and representing the interests of the people. This democratic element reflects Aristotle's notion of rule by the many.
3. House of Lords: The British Parliament also includes the House of Lords, which represents an aristocratic element in the mixed regime. The House of Lords is composed of appointed members, including life peers, hereditary peers, and bishops. Although their powers are limited, they contribute to the legislative process by offering expertise, independent judgment, and revising legislation.
4. Rule of Law: Britain has a strong tradition of the rule of law, ensuring that the government operates within legal boundaries and protects individual rights. This principle serves as a check on the concentration of power and upholds the idea of a mixed regime by preventing the dominance of any one element.
5. Devolved Governments: The British model includes devolved governments in Scotland, Wales, and Northern Ireland. These regional bodies have varying degrees of legislative and executive powers, providing a decentralized aspect to the system. This decentralization aligns with Aristotle's view of local self-governance and a balance between central and regional authority.
It is important to note that the British system is not a perfect embodiment of Aristotle's mixed regime. The exact interpretation and application of Aristotle's ideas can be debated, and the British system has evolved over time. However, the presence of elements such as a constitutional monarchy, parliamentary democracy, an appointed upper chamber, and the rule of law can be seen as reflecting certain aspects of Aristotle's mixed regime concept.
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The sum of two number is 7 and their difference 1 need answer so hurry
Answers
Answer:
3 & 4
Explanation:
Let the two number be 'a' and ' b'.
a + b = 7
a - b = 1
Adding the two equations
2a = 6
a = 6/2
a = 3
Substituting 'a' in any equation
a + b = 7
3 + b = 7
b = 7-3
b =4
The two numbers are 3 and 4
What is the best definition of technology?
Technology is replacing human workers with mechanical or electronic devices.
Technology is applying scientific knowledge to find answers and fix problems.
Technology is using fewer resources to manufacture goods more efficiently.
Technology is hiring workers from all over the world to manufacture goods.
Answers
Answer:
technology is applying scientific knowledge to find answers and fix problems.
Explanation:
thats what i think. sorry if its wrong
Answer:
EDG: A-Technology is applying scientific knowledge to find answers and fix problems.
Explanation:
Question 3 of 10
Who plays a role in the financial activities of a company?
A. Just employees
B. Everyone at the company, including managers and employees
C. Just managers
D. Only members of the finance and accounting department
SUBMIT
Answers
Answer:
C. Just managers. I hope this helps
Imagine that confidential information stored on your employer's servers is compromised in a data breach. This information contains customer identities, addresses, and financial information, as well as similar kinds of information on company business plans, pending patents, and intellectual property. Finally, the stolen information contains the confidential records for employment (ie, names, addresses, social security numbers, and so on). Do you think you know what to do, both as a person and as a company? How should a company in this position respond, and what do appropriate counter-measures and plans look like?"
Answers
As an individual, if you discover a data breach, immediately report it to your employer's IT or security team.
As a company, respond by conducting a thorough investigation, notifying affected individuals, offering assistance, implementing stronger security measures, and cooperating with authorities.
Appropriate counter-measures include encryption, access controls, regular security audits, employee training, and incident response plans. Plans should focus on prevention, detection, containment, and recovery.
In the event of a data breach involving confidential information, both individuals and companies need to take appropriate actions. As an individual, if you become aware of a data breach, it is crucial to promptly report the incident to your employer's IT or security team. This immediate action allows the company to initiate their incident response procedures promptly.
From the company's perspective, a comprehensive response is essential. The first step is to conduct a thorough investigation to determine the extent of the breach, the information compromised, and the cause of the breach. This investigation will provide valuable insights to guide subsequent actions.
Once the investigation is complete, the affected individuals should be notified promptly. Clear and concise communication is vital to inform customers about the breach, what information was compromised, and any potential risks they may face. Additionally, offering assistance, such as credit monitoring services or identity theft protection, can help mitigate the impact on affected individuals.
To prevent future breaches, the company should implement stronger security measures. These may include encryption of sensitive data, robust access controls to limit unauthorized access, regular security audits to identify vulnerabilities, and comprehensive employee training on security best practices.
Furthermore, a well-defined incident response plan is crucial. This plan should outline the steps to be taken during a breach, including prevention, detection, containment, and recovery strategies. Regular testing and updating of the plan ensure its effectiveness and readiness.
In summary, both individuals and companies need to act swiftly in the event of a data breach. Companies should respond by conducting investigations, notifying affected individuals, offering assistance, implementing stronger security measures, and cooperating with authorities. Effective counter-measures involve encryption, access controls, regular security audits, employee training, and well-defined incident response plans.
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List qualities a good manager should have. What are the advantages and drawbacks of being in a position of authority?The qualities of a good manager are:The advantages of being a manager are:The drawbacks of being a manager are:
Answers
Please help!! Unit test question 50 pnts!!!! Kyle is applying to be a police officer. In his interview, he describes that he loves watching the news and following current cases. He explains that he is honest, caring, compassionate, and has a very deep sense of integrity. He then explains that he is in excellent physical condition and trains regularly in hand-to-hand combat. He tells them that he is a member of the Police Explorers, a group that trains and rides along with the local police. He also tells them that he graduated at the top of his class and was a state finalist on the mock trial team. Which table accurately lists Kyle’s personal interests, skills, achievements, values, and experiences? A 2-column table with 5 rows. Column 1 has entries Personal interests, Skills, Achievements, Values, Experiences. Column 2 has entries grades and mock trial finalist; physical condition and training; following cases on the news; honest, caring, compassionate, has integrity; Explorers. A 2-column table with 5 rows. Column 1 has entries Personal interests, Skills, Achievements, Values, Experiences. Column 2 has entries following cases on the news; honest, caring, compassionate, has integrity; grades and mock trial finalist; physical condition and training; Explorers. A 2-column table with 5 rows. Column 1 has entries Personal interests, Skills, Achievements, Values, Experiences. Column 2 has entries grades and mock trial finalist; honest, caring, compassionate, has integrity; Explorers; physical condition and training; following cases on the news. A 2-column table with 5 rows. Column 1 has entries Personal interests, Skills, Achievements, Values, Experiences. Column 2 has entries following cases on the news; physical condition and training; grades and mock trial finalist; honest, caring, compassionate, has integrity; Explorers.
Answers
The table is A 2-column table with 5 rows. Column 1 has entries Personal interests, Skills, Achievements, Values, Experiences. Column 2 has entries following cases on the news; honest, caring, compassionate, has integrity; grades and mock trial finalist; physical condition and training; Explorers. The correct option is (B).
What do you mean by skills, interest?Passion (or Interests): Do I enjoy engaging in this activity? something that you enjoy doing? Is this an activity I have the talent (or skills) for?
There are three categories of skills: self-management, functional, and specialised knowledge. Functional skills are innate aptitudes or capabilities that are refined through practice and education.
Therefore, the table accurately lists Kyle’s personal interests, skills, achievements, values, and experiences is A 2-column table with 5 rows. Column 1 has entries Personal interests, Skills, Achievements, Values, Experiences. Column 2 has entries following cases on the news; honest, caring, compassionate, has integrity; grades and mock trial finalist; physical condition and training; Explorers.
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explain why accounting is important to business stakeholders
Answers
Answer:
the purpose of accounting is to help stakeholders make better business decisions by providing them with financial information.
Assume your company’s sales increased from $3 million last year to $10 million this year. However, your biggest competitor is still the market leader with a 40% share of the $200 million widget market. Your other four competitors had sales this year of $53 million, $38 million, $12 million, and $7 million, respectively. For this year, what is your company’s MARKET SHARE? Type only a number along with a $ or % (if appropriate). Dollar amounts should be rounded to the nearest cent; percentages to the nearest tenth. *
Answers
Answer: 5%
Explanation:
The market share for the company will be gotten using the formula:
= Sales generated by company / Total industry sales × 100
= 10/200 × 100.
= 5%
Therefore, the company's market share is 5%
Can anyone here help me with a P.O.B sba??
Please
Answers
Answer:
que
Explanation:
A market is dominated by five firms, each with an equal share of market sales. What is the herfindahl-hirschman index for this market?.
Answers
Based on the Herfindahl-Hirschman index rules, when a market is dominated by five firms, with each having an equal share of market sales, the Herfindahl-Hirschman index is 2000 HHI
What is the Herfindahl-Hirschman indexThe Herfindahl-Hirschman index is a term that is used to describe the extent of market concentration and is used to deduce market competitiveness, usually during pre- and post-merger and acquisition transactions.
The Herfindahl-Hirschman index is categorized into three, which include the following:A market with an HHI of less than 1,500 is known to be a competitive marketplace, A market with an HHI of 1,500 to 2,500 is known to be moderately concentrated, A market with an HHI of 2,500 or greater is known to be highly concentrated.In this case, since all the five firms have equal share of market sale, then we have the following
Firm 1 market share = 20%
Firm 2 market share = 20%
Firm 3 market share = 20%
Firm 4 market share = 20%
Firm 5 market share = 20%
The HHI is calculated as:
Therefore, we have HHI = 20^2 + 20^2 + 20^2 +
20^2 + 20^2 = 400+ 400 + 400 + 400 + 400 = 2,000
Thus, since the HHI is 2000, this is considered to be a moderately concentrated market.
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To ensure that people don’t waste their time trying to reach you, you should:
Answers
Answer:
Keep your IM presence status current.
Explanation:
The fact that multiple generations often work together in family businesses provides which of the following advantages? A) They will have equal skills with technology B) Family dynamics will play a part in business relationships C) perspectives of diverse clients are more likely to be taken into consideration D) Family members from different generations are more likely to get along
Answers
Answer:
Explanation: B) Family dynamics will play a part in business relationships.
SMR Company earnings before taxes of AED 20 million in year 2020 with tax rate 30 percent and expected to increase by 20 percent in 2021 with 3,000,000 shares of stock outstanding. On January 1, 2021, the firm will issue 1,000,000 new shares. SMR earnings per share in 2021 will be ?
Answers
To calculate the earnings per share (EPS) for SMR Company in 2021, we need to consider the increase in earnings and the change in the number of shares.
1. Calculate the earnings after taxes in 2020:
Earnings before taxes: AED 20 million
Tax rate: 30%
Earnings after taxes: AED 20 million - (AED 20 million x 30%) = AED 14 million
2. Calculate the expected increase in earnings for 2021:
Increase in earnings: AED 14 million x 20% = AED 2.8 million
Projected earnings for 2021: AED 14 million + AED 2.8 million = AED 16.8 million
3. Calculate the total number of shares after the stock issuance in 2021:
Initial number of shares: 3,000,000
Additional shares issued: 1,000,000
Total number of shares: 3,000,000 + 1,000,000 = 4,000,000
4. Calculate the earnings per share in 2021:
EPS = Projected earnings / Total number of shares
EPS = AED 16.8 million / 4,000,000 shares
The earnings per share for SMR Company in 2021 is AED 16.8 million / 4,000,000 shares = AED 4.20 per share.
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which strategy is used by firms that believe increasing colume of sales will help the firm more than increasing profits
Answers
Answer:
Sales Orientation