Think like this, agar company mai potential dilutive securities hai to unke dilute hone pr share price kaam hojaayega - this means if co. have 10,000 convertible preference shares (dilutive). So after conversion of preference shares, no. of common shares increases - to jo prefence shares ko pahele dRead more
Think like this, agar company mai potential dilutive securities hai to unke dilute hone pr share price kaam hojaayega – this means if co. have 10,000 convertible preference shares (dilutive).
So after conversion of preference shares, no. of common shares increases – to jo prefence shares ko pahele dividend pmt kr rhe vo ab nhi karenge – so that’s why we add dividend, if previously deducted in calculation of Basic eps.
Think likewise in the pmt of bond coupons.
In your question, preference shares are not convertible, that’s why dividend is subtracted.
Note – we only deduct preference shares dividend from NI not common shares dividend.
In this pic you will find that India has a comparative advantage of producing x commodity in comparison to US. India only loses 0.25 units of y for producing 1 unit of x - Comparative advantage US loses 0.5 units of y for producing 1 unit of x Now trade opens India's autarkic price of producing x wRead more
In this pic you will find that India has a comparative advantage of producing x commodity in comparison to US.
India only loses 0.25 units of y for producing 1 unit of x – Comparative advantage
US loses 0.5 units of y for producing 1 unit of x
Now trade opens
India’s autarkic price of producing x was 0.25 & US – 0.5
India will export x for y & will demand at least 0.25y (jab India akele mai x produce kar rha tha to 0.25 y lose kar rha tha)
US max 0.5 max pay kar skta hai (agar isse jaada pay karega to us ko trade karne mai benefit nhi hoga)
Suppose after negotiation it is decided for x US will pay 0.49 — In this trade India gains a greater share from international trade — This explains option C
Sometimes it's difficult to comment whether the fiscal policy is expansiory or contractionary, because budget deficit also changes on account of automatic stabilizers. So to find the actual position we compare with the Structural or Cyclically adjusted deficit (SD). It is the deficit when the economRead more
Sometimes it’s difficult to comment whether the fiscal policy is expansiory or contractionary, because budget deficit also changes on account of automatic stabilizers.
So to find the actual position we compare with the Structural or Cyclically adjusted deficit (SD). It is the deficit when the economy is under full employment situation.
Thus, if the budget deficit > SD – expansiory fiscal policy
Income statement
Think like this, agar company mai potential dilutive securities hai to unke dilute hone pr share price kaam hojaayega - this means if co. have 10,000 convertible preference shares (dilutive). So after conversion of preference shares, no. of common shares increases - to jo prefence shares ko pahele dRead more
Think like this, agar company mai potential dilutive securities hai to unke dilute hone pr share price kaam hojaayega – this means if co. have 10,000 convertible preference shares (dilutive).
So after conversion of preference shares, no. of common shares increases – to jo prefence shares ko pahele dividend pmt kr rhe vo ab nhi karenge – so that’s why we add dividend, if previously deducted in calculation of Basic eps.
Think likewise in the pmt of bond coupons.
In your question, preference shares are not convertible, that’s why dividend is subtracted.
Note – we only deduct preference shares dividend from NI not common shares dividend.
See lessAutarkic Prices?
In this pic you will find that India has a comparative advantage of producing x commodity in comparison to US. India only loses 0.25 units of y for producing 1 unit of x - Comparative advantage US loses 0.5 units of y for producing 1 unit of x Now trade opens India's autarkic price of producing x wRead more
In this pic you will find that India has a comparative advantage of producing x commodity in comparison to US.
India only loses 0.25 units of y for producing 1 unit of x – Comparative advantage
US loses 0.5 units of y for producing 1 unit of x
Now trade opens
India’s autarkic price of producing x was 0.25 & US – 0.5
India will export x for y & will demand at least 0.25y (jab India akele mai x produce kar rha tha to 0.25 y lose kar rha tha)
US max 0.5 max pay kar skta hai (agar isse jaada pay karega to us ko trade karne mai benefit nhi hoga)
Suppose after negotiation it is decided for x US will pay 0.49 — In this trade India gains a greater share from international trade — This explains option C
Cyclically Adjusted Budget Deficit
Sometimes it's difficult to comment whether the fiscal policy is expansiory or contractionary, because budget deficit also changes on account of automatic stabilizers. So to find the actual position we compare with the Structural or Cyclically adjusted deficit (SD). It is the deficit when the economRead more
Sometimes it’s difficult to comment whether the fiscal policy is expansiory or contractionary, because budget deficit also changes on account of automatic stabilizers.
So to find the actual position we compare with the Structural or Cyclically adjusted deficit (SD). It is the deficit when the economy is under full employment situation.
Thus, if the budget deficit > SD – expansiory fiscal policy
budget deficit < SD – contractionary fiscal policy.
See less