Basic earnings per share ignores:A. All potential common shares.B. Some potential common shares, but not others.C. Dividends dec

lared on noncumulative preferred stock.D. Stock splits.

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A company has retained earnings of $94,000 as of December 31, 2014. The Pro-forma income statement projects net income of $22,00

marusya05 [3725]

Answer:

$46,000.

Explanation:

To determine the retained earnings as of the end of 2015, we must first assess the total dividend that will be distributed to shareholders, and then combine the net income from 2015 with the leftover retained earnings from the conclusion of 2014 (after the distribution of 2014's dividend in March 2015) to arrive at the retained earnings figure for the close of 2015.

Total dividend on March 2015 = 0.7 x 100,000 = 70,000

Retained Earnings as of the end of 2015 = 94,000 - 70,000 + 22,000 = 46,000.

5 0

3 months ago

Assume an economy where the consumption function is defined as C = CC + cY, and the investment function is defined as I = mr, wh

Nady [3600]

Answer:

c and m

Explanation:

Considering the provided information,

Consumption function: C = CC + cY

Investment function: I = mr

where,

Y indicates total income

r represents the interest rate

The equation describing the IS curve can be stated as:

Y = C + I

Y = CC + cY + mr

Y - cY = CC + mr

(1 - c)Y = CC + mr

(1 - c)Y - CC = mr

$\frac{(1 - c)Y - CC}{m}=r$

$\frac{(1-c)Y}{m} -\frac{CC}{m}=r$

The slope of the IS curve is determined by differentiating 'r' with respect to 'Y',

$\frac{dr}{dY}=\frac{(1-c)}{m}$

Thus, the slope is contingent upon the variables c and m.

6 0

2 months ago