A liability is a debt to an oraganization/business. Once the information brings the company down -holds them back- it becomes a liability. It's like if you have an accounts payable your creditors would have full rights to your money upon company liquidation. That means your company will earn less revenue. A liability is something you owe.
At least 3 days per week with sufficient reps and sets.
Answer:
a-1. We have:
Recession EPS = $1.49
Normal EPS = $2.13
Expansion EPS = $2.45
a-2. We have:
Recession percentage change in EPS = -30.00%
Expansion percentage change in EPS = 15.00%
b-1. We have:
Recession EPS = $1.12
Normal EPS = $1.76
Expansion EPS = $2.08
b-2. We have:
Recession percentage change in EPS = -36.36%
Expansion percentage change in EPS = 18.18%
Explanation:
Note: See the attached excel file for the calculations of the EPS and the percentage changes in EPS.
From the attached excel file, we have:
a-1. Calculate earnings per share (EPS) under each of the three economic scenarios before any debt is issued.
Recession EPS = $1.49
Normal EPS = $2.13
Expansion EPS = $2.45
a-2. Calculate the percentage changes in EPS when the economy expands or enters a recession.
Recession percentage change in EPS = -30.00%
Expansion percentage change in EPS = 15.00%
b-1. Calculate earnings per share (EPS) under each of the three economic scenarios assuming the company goes through with recapitalization.
Recession EPS = $1.12
Normal EPS = $1.76
Expansion EPS = $2.08
b-2. Given the recapitalization, calculate the percentage changes in EPS when the economy expands or enters a recession.
Recession percentage change in EPS = -36.36%
Expansion percentage change in EPS = 18.18%
Answer:
The test statistic t of the sample is -0.804.
There is sufficient evidence to ascertain that the average number of years of work experience of MBA applicants is less than 3 years.
Explanation:
Null hypothesis: The average number of years of work experience of MBA applicants is 3 years.
Alternate hypothesis: The average number of yet of work experience of MBA applicants is less than 3 years.
Test statistic (t) = (sample mean - population mean) ÷ sd/√n
sample mean = 2.57
population mean = 3
sd = 3.67
n = 47
t = (2.57 - 3) ÷ 3.67/√47 = -0.43 ÷ 0.535 = -0.804
Assuming a 5% significance level
degree of freedom = n - 1 = 47 - 1 = 46
The critical value corresponding to 46 degrees of freedom and 5% significance level is 2.013.
Conclusion:
Reject the null hypothesis because the test statistic -0.804 is less than the critical value 2.013.
The years of work experience of MBA applicants is less than 3.
