Answer:
c. 1.14
Explanation:
Year Cash Flow PV Factor 10% PV of Cash flows
($) ($)
Year 1 180,000 0.909 163,620
Year 2 120,000 0.826 99,120
Year 3 100,000 0.751 75,100
Year 4 90,000 0.683 61,470
Year 5 90,000 0.621 55,890
Total = 455,200
Initial cash outflow = $400,000
Cash inflow = $455,200
So, we can calculate the present value index by using following formula,
Present value index = Cash inflow ÷ Cash outflow
= $455,200 ÷ $400,000
= 1.14
Solution:
a-1) Calculation of the number of shares used for calculating Basic Earning per share
No. of shares period
752000 3/12 188000
1314000 9/12 985500
Weighted average No of shares outstanding 1173500
a-2) Calculation of the number of shares used for calculating Diluted Earning per share
No. of shares period
752000 3/12 188000 1314000 3/12 328500 with Bonds 1340400 6/12 670200
Weighted average No of shares outstanding 1186700
Each bonds to per converted into 44 common stock
i.e. 600 Bonds *44 common=26400 Potential equity shares
b-1) Calculation of earning figures to be used for calculating Basic Earning per share
After Tax net Income will be earnings = $1614000
b-2) Calculation of earning figures to be used for calculating Diluted Earning per share
After tax net Income 1614000
Interest for the 2017 =600000*7*6/12 21000
Tax effect on Interest @40% 8400 12600 1626600
Earnings = 1626600
In general, the people who have the power to select or approve the supplier are referred to as the "buyers". Most of the time, buyers want to go with a supplier who can offer the best product at the cheapest price.
Answer: Price inelastic.
Explanation:
In Denver as described in the question the demand for water is price inelastic as it doesn't change regardless of changes in price of water. An item is said to be price inelastic if the demand remains the same regardless of price rise or fall of that item.
I think the correct answer would be false. The automobile will remain the primary source of transportation. As we can see today, almost all of the people use automobile to go to different places. As we see in the road, different vehicles are present. Also, the automobile industry, recently, is a booming industry. We have different models, colors, brands and specifications of the vehicles. I think the use of automobiles as the primary source of transportation would still go for many years as it is the most convenient and comfortable transportation as compared to others like bicycle, train and motorcycle.
