The P-E ratio equals the share price divided by EPS. If the dividends per share equaled US $2 and the dividend-payout ratio was 40%, EPS must have been US $5 $2 - .4). Accordingly, the P-E ratio is 4 US $20 share price - $5 EPS). Entity A has 50,000 ordinary shares and 10,000 preference shares outstanding at the start of the year on January 1. The preference shares are entitled to a US $2 per share annual cash dividend, payable on December 31. The entity had profit of US $1517,000 for the year. On April 1, the entity issued 15,000 additional ordinary shares for cash. Entity B. is identical to entity A in all respects except that it had 75.000 ordinary shares outstanding for the entire year.

The degree of financial leverage for B. may be calculated as profit before interest and taxes
(PBIT), divided by PBIT minus interest. PBIT is 200 95 profit 10 interest 95 tax expense). Thus, the DFL is 1.05 [200 - 200 - 10)].

The letter x in the standard regression equation is the independent variable. For example, in a regression to determine the total cost of production, x equals units produced.

When a financial liability is initially recognized, the entity should measure it at its cost a is the fair value of the consideration received. The fair value ordinarily is determined by reference to the transaction price or other market prices. If these prices are not reliably determinable, the fair value is estimated by discounting the future cash payments at an imputed rate equal to the prevailing market rate for a similar instrument similar as to currency term, and type of rate) of an issuer with a similar credit rating.

An essential element of activity-based costing ABC) is driver analysis which identifies the cause-and-effect relationship between an activity and its consumption of resources and for an activity and the demands made on it by a cost object. There is a direst causal relationship between the number of components in a finished product and the amount of material handling cost incurred: