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2 years ago

The cost-benefit principal states that

Business

1 answer:

REY [17]2 years ago

6 0

Cost-benefit principle would state that you would only take an action if the benefit outweighs the cost.

For example: It may cost me $5 to drive to work, but I make $50 for showing up, I would go because the benefit I get outweighs the cost and I am better off going than staying at home.

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In determining basic earnings per share, dividends on nonconvertible cumulative preferred stock should be:a. deducted from net i

DiKsa [7]

Answer:

b. deducted from net income whether declared or not

Explanation:

The formula to compute the basic earning per share is shown below:

Basic earning per share = (Net income - preferred stock dividend) ÷ (weighted average of outstanding shares)

In the case of the non- convertible cumulative preferred stock, the dividend should be paid whether the business earns profit or loss. If the business does not earn any profit during a particular year, in that period the dividend amount is carried forward to next year.

So, the dividend arrears are to be paid to the cumulative preferred stock.

4 0

2 years ago

Why do large corporations want to become more like small businesses?

notsponge [240]

Answer:

Many large corporations want to become more like small businesses because they want to make their firm more flexible, resourceful, innovative, and competitive. ... For businesses based off the internet, they are able to adapt to market changes quickly.

3 0

2 years ago

Read 2 more answers

Jack's Corp. has $5 billion is total assets, and its tax rate is 40%. Its basic earnings power (BEP) ratio is 12%, and its retur

Inessa [10]

Based on the information given Jack's times-interest earned (TIE) ratio is 3.28.

<h3>Times-interest earned (TIE) ratio is 3.28.</h3>

BEP = EBIT ÷ Total Assets

12% = EBIT ÷ $18 billion

EBIT = 12% × $5 billion

EBIT= $0.6 billion

ROA = Net Income ÷ Total Assets

5% = Net Income ÷ $5 billion

Net Income = 5% × $5 billion

Net income= $0.25 billion

Earning before tax:

Earning before tax= Net income ÷ (1 - tax)

Earning before tax= $0.25 ÷ (1 - 0.40)

Earning before tax= $0.25 ÷ 0.60

Earning before tax= $0.417 billion

Interest Expense:

Interest Expense= EBIT - EBT

Interest Expense= $0.6 billion - $0.417billion

Interest Expense= $0.183 billion

Times interest earned ratio:

Times interest earned ratio= EBIT ÷ Interest expense

Times interest earned ratio= $0.6 billion ÷ $0.183 billion

Times interest earned ratio= 3.28

Inconclusion Jack's times-interest earned (TIE) ratio is 3.28.

Learn more about times-interest earned (TIE) ratio here:brainly.com/question/17150434

7 0

1 year ago

Wally Corporation acquired 70 percent of the common shares and 60 percent of the preferred shares of Safety Corporation at under

Alika [10]

Answer:

$80,000

Explanation:

The entire amount of net income of $80,000 Safety by First for the year 2006 will be considered as a part of the consolidated income and will get distributed between controlling and non-controlling interest in the relevant proportion.

3 0

2 years ago

Vocabulary Word

77julia77 [94]

Answer:

Explanation:

A tool for organizing important information about the competition.

competitive matrix

Those most likely to buy your products and services

target customers

The distribution channel through which your product or service flows from the producer to the customer. value chain

A distinct aspect, quality, or characteristic of a product or service

feature

Something that promotes or enhances the value of the proctor service to the customer. benefit

A group of businesses with a common interest, such as financial services, computers, retail, or groceries. industry

End-users of the service. Beneficiaries

Working model of a new product. Describes how you intend to create and

capture value with your business concept. prototype

4 0

2 years ago