Answer:
C
Step-by-step explanation:
To find the sum of the rational expressions, we need to add the two expressions and simplify if possible:
(2x-1)/(7x+x+2) + (x-2)/(8x-2)
Simplifying the denominators, we get:
(2x-1)/(8x+2) + (x-2)/(8x-2)
Now, we need to find the LCD, which is (8x+2)(8x-2) = 64x²-4:
[(2x-1)(8x-2) + (x-2)(8x+2)] / (64x²-4)
Simplifying the numerator, we get:
[16x²-4x-16x+4+8x²-2x+16x-4] / (64x²-4)
Combining like terms, we get:
(24x²-2) / (64x²-4)
Factoring out a 2 from the numerator and denominator, we get:
2(12x²-1) / 2(32x²-2)
Simplifying further, we get:
(12x²-1) / (16x²-1)
Therefore, the sum of the rational expressions is:
12x²-1
-----------
16x²-1
So, the answer is option C.
HURRY DUE TONIGHT PLEASE EXPLAIN
Danielle was completing her science project and mixed saline solutions A and B. Brand A was a six gallon 18% saline solution and she ended up with an 18 gallon 8% saline solution mixture. Find the percent of saline solution in brand B.
A. 21%
B. 3%
The percentage of saline solution in brand B is 3%.
Let x be Percentage of saline solution in brand B
We know that the overall volume of saline solution in the combination is 18% of 6 gallons plus x% of (18 - 6) gallons since Danielle blended brands A and B to make a total of 18 gallons of 8% saline solution.
Then the equation is given as,
0.18(6) + 0.01x(18 - 6) = 0.08(18)
Simplifying and solving for x, we get:
1.08 + 0.12x = 1.44
0.12x = 0.36
x = 3
Therefore, the percentage of saline solution in brand B is 3%.
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Describe the transformations of f(x) to get to g(x) pic attached below
The transformation sequence of the function is:
The function is first shifted to the left, then vertically stretched, and finally vertically shifted up and down to get the final graph.
We have,
The transformations of f(x) = 2^x to get to g(x) = -5 + 2^{x + 6} + 3 are as follows:
Translation:
f(x) is translated 6 units to the left, which gives 2^{x+6}.
Vertical stretch/compression:
The entire function is multiplied by 2, which makes it taller.
Vertical shift:
The entire function is shifted up 3 units and down 5 units, which raises the entire graph 3 units and then lowers it 5 units from its original position.
Thus,
The function is first shifted to the left, then vertically stretched, and finally vertically shifted up and down to get the final graph.
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using the data on this scatter plot
Answer:
[tex] - 8(45) + 482 = - 360 + 482 = 122[/tex]
Solve using mathematical induction:
7^n - 1 is divisible by 6, for every positive integer n.
[tex]7^n - 1[/tex] is divisible by 6 for every positive integer n.
To prove that [tex]7^n - 1[/tex] is divisible by 6 for every positive integer n, we will use mathematical induction.
First, we will check the base case, n = 1:
[tex]7^1 - 1 = 6[/tex], which is divisible by 6.
Now, we assume that [tex]7^k - 1[/tex]is divisible by 6 for some positive integer k. This means that there exists an integer m such that:
[tex]7^k - 1 = 6m[/tex]
Next, we need to show that this implies that 7^(k+1) - 1 is also divisible by 6. We can use the following algebraic manipulation:
[tex]7^{k+1} - 1 = 7*7^k - 1 = 6\\7^k + (7^k - 1)[/tex]
Since we know that [tex]7^k - 1[/tex] is divisible by 6 (by the induction hypothesis), we can substitute 6m for [tex]7^k - 1[/tex] in the above equation:
[tex]7^{k+1} - 1 = 67^k + (7^k - 1) = 67^k + 6m = 6(7^k + m)[/tex]
This shows that [tex]7^{k+1} - 1[/tex] is also divisible by 6, since it is a multiple of 6. Therefore, by mathematical induction, we can conclude that [tex]7^n - 1[/tex] is divisible by 6 for every positive integer n.
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3
1
Jill walked on Tuesday 3-miles. On Wednesday, she walked 1
less than on Tuesday. Which equati
5
4
total number of miles Jill walked, w, on Tuesday and Wednesday?
0 = 3/3² + 1² = w
The equation that shows the total number of miles Jill walked, w, on Tuesday and Wednesday is w = 3 + 2
Calculating the equation shows the total number of milesFrom the question, we have the following parameters that can be used in our computation:
Tuesday = 3 miles
Wednesday = 1 less than Tuesday
This means that
Wednesday = 3 miles - 1 mile
Evaluating the like terms, we have
Wednesday = 2 miles
The equation shows the total number of miles Jill walked, w, on Tuesday and Wednesday is represented as
w = Tuesday + Wednesday
Substitute the known values in the above equation, so, we have the following representation
w = 3 + 2
Evaluate
w = 5
Hence, the equation is w = 3 + 2 and the number of miles s 5
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Helpppppp!! I’ll give u brainlyyy pls helpppp with my math
Answer:
a = 2h = -3k = -2Step-by-step explanation:
You want the values of 'a', 'h', and 'k' for the transformed function f(x) = 2·log₄(x +3) -2.
TransformationWhen a function is scaled by the factor 'a' and translated by (h, k), it becomes ...
f(x) ⇒ a·f(x -h) +k
Comparing the function f(x) = log₄(x) to f(x) = 2·log₄(x +3) -2, we see that has been scaled by the factor a=2, and translated by (h, k) = (-3, -2).
The values of the transformation constants are ...
a = 2h = -3k = -2__
Additional comment
In the above transformation, the value 'h' represents a translation to the right. If the form f(x+h)+k is used for the transformed function, then h represents a translation to the left. We don't have information regarding what your values of 'a', 'h', and 'k' are supposed to represent, so we have used the usual meaning.
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Stephan has a box in the shape of a hexagonal prism where the hexagonal bases are regular. A net of the box is below.
In the hexagon diagram, all the sides are drawn with a rectangle on every side and each is added and another hexagon is added to a rectangle.
Note: Figure is not drawn to scale.
He measured the height of the box to be 7 in. Then, Stephan drew a line from the center of one of the hexagons to each of its vertices and noticed that all the triangles he created have a height of 9 in and a base of 10 in.
The geometry of the hexagon is equally divided into six parts of the triangles are shaded inside. The top side is marked as 10 inches, and the length of the triangle is 9 inches.
Note: Figure is not drawn to scale.
What is the surface area of the hexagonal prism?
A.
750 sq in
B.
690 sq in
C.
960 sq in
D.
1,380 sq in
The answer is 960in² (Option C) This is a geometry prompt involving hexagonal shape.
What is the rationale for this?Since there are 6 congruent triangles, you find the area of 1 of the triangles and multiply by 6
Area of 1 triangle:
1/2bh = 1/2 (9 in) (10 in)
=1/2 (90 sq in.)
= 45 sq in.
Area of 1 hexagon is 6 (45 sq. in) = 270 sq. in.
There are 2 hexagons in the net, so multiply by 2
Area of 2 hexagons is...
2 (270 sq. in) = 540 sq. in.
Then find the area of the rectangular sides...which will be the 6 small squares shown on the first picture
**the rectangles each have 1 side that is equal to 1 side of the hexagon and 1 side is equal to the height of the prism.
Area of 1 rectangle side
lw = (10 in) (7in.)
= 70 sq. in.
multiply all of the 6 sides of the area
=6 (70 sq.in)
=420 sq. in
Then add the area of the 2 hexagons to the area of the 6 rectangular sides
Total area = 540sq. in + 420sq. in
= 960sq. in.
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Ben uses clay to make the rectangular prism to the left. Naomi uses cardboard to make the triangular prism to the right. Compare the volumes of the prisms.
360 runners are in a race. 20% are men. how many men are in the race?
Please Help
A line has a slope of -7 and passes through the point (2,7). Write its equation in slope intercept form.
A line has a slope of 1 and passes through the point (-1,-7). Write it’s equation in slope intercept form
A line have a slope of 1/2 and passes through the point (6,7). Write it’s equation in slope intercept form.
A line has a slope of -2/3 and passes through the point (9,0). Write It’s equation in slope intercept form
A line has a slope of 5 and passes through the point (5,19).
Write it’s equation in slope intercept form
Write all answers using integers, proper fractions, and improper fractions in simplest form
A linear equation in slope intercept form for each of this line are as follows;
y = -7x + 21y = x - 8y = x/2 + 4y = -2x/3 + 6y = 5x - 6How to determine an equation of this line?In Mathematics and Geometry, the point-slope form of a straight line can be calculated by using the following mathematical equation (formula):
y - y₁ = m(x - x₁)
Where:
x and y represent the data points.m represent the slope.At data point (2, 7) and a slope of -7, a linear equation in slope intercept form for this line can be calculated by using the point-slope form as follows:
y - 7 = -7(x - 2)
y - 7 = -7x + 14
y = -7x + 21
y = 5x - 6
At data point (-1, -7) and a slope of 1, a linear equation in slope intercept form for this line can be calculated by using the point-slope form as follows:
y - (-7) = 1(x - (-1))
y + 7 = x + 1
y = x - 8
At data point (6, 7) and a slope of 1/2, a linear equation in slope intercept form for this line can be calculated by using the point-slope form as follows:
y - 7 = 1/2(x - 6)
y - 7 = x/2 - 3
y = x/2 + 4
At data point (9, 0) and a slope of -2/3, a linear equation in slope intercept form for this line can be calculated by using the point-slope form as follows:
y - 0 = -2/3(x - 9)
y - 0 = -2x/3 + 6
y = -2x/3 + 6
At data point (5, 19) and a slope of 5, a linear equation in slope intercept form for this line can be calculated by using the point-slope form as follows:
y - 19 = 5(x - 5)
y - 19 = 5x - 25
y = 5x - 6
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What type of triangle is defined by the following set of side lengths
4.8, 28.6, 29
Acute
Obtuse
Right
Not a triangle
The triangle with the side length of 4.8, 28.6 and 29 is a right triangle.
How to find the sides of a right angle triangle?A right angle triangle is a triangle that has one of its angles as 90 degrees.
The sum of angles in a triangle is 180 degrees.
The sides of a right angle triangle can be found using Pythagoras's theorem as follows:
c² = a² + b²
where
c = hypotenuse sidea and b are the other legsTherefore, lets check if the triangle is a right triangle using Pythagoras's theorem as follows:
4.8² + 28.6² = 29²
23.04 + 817.96 = 841
841 = 841
Therefore, the triangle is a right triangle.
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find the x and y value in the following parallelogram- show work please!!
Answer:x=10 y=14
Step-by-step explanation:
Peyton is going to invest in an account paying an interest rate of 4.2% compounded
continuously. How much would Peyton need to invest, to the nearest cent, for the
value of the account to reach $39,000 in 17 years?
The amount that Peyton would need to invest for the value of the account to reach $39,000 in 17 years is given as follows:
A(0) = $19,097.58.
How to model continuous compounding?The balance of an account after t years, using continuous compounding, is modeled by the equation presented as follows:
[tex]A(t) = A(0)e^{kt}[/tex]
In which:
A(0) is the initial amount.k is the continuous compounding rates.The parameters for this problem are given as follows:
A(t) = 39000, t = 17, k = 0.042.
Hence the investment is obtained as follows:
[tex]A(0)e^(0.042 \times 17) = 39000[/tex]
[tex]A(0) = \frac{39000}{e^(0.042 \times 17)}[/tex]
A(0) = $19,097.58.
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if 6 article are sold for 20 rupees then there is aloss of20% inorder to gain 20% what must be the number of articals sold for 20 rupess
The number of article sold for Rupees 20 to gain a profit of 20% is equal to 4.
Number of article sold for Rupees 20 = 6
Percent of loss in selling 6 article for Rupees 20 = 20%
Let us start by finding the cost price of one article.
We know that if 6 articles are sold for 20 rupees,
then the selling price of one article is equal to,
Selling price of 1 article = 20/6
⇒ Selling price of 1 article = 3.33 rupees
There was a loss of 20% when 6 articles were sold for 20 rupees.
This means that the cost price of 6 articles is equal to,
Cost price of 6 articles
= Selling price of 6 articles / (1 - Loss%)
= 20 / ( 1 - 20% )
= 20 / (1 - 0.2)
= 25 rupees
To gain 20% profit, the selling price of the articles should be equal to,
Profit% is 20% = 0.2
Selling price of 6 articles
= Cost price of 6 articles × (1 + Profit%)
= 25 × (1 + 0.2)
= 30 rupees
Now , the selling price of one article to calculate how many articles can be sold for 20 rupees,
Selling price of 1 article
= Selling price of 6 articles / 6
= 30 / 6
= 5 rupees
This implies,
The number of articles that can be sold for 20 rupees to gain a 20% profit is equal to,
Number of articles
= 20 / 5
= 4 articles
Therefore, 4 articles must be sold for 20 rupees to gain a 20% profit.
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NEED HELP ASAP
Which ordered pair represents the point labeled A?
The x axis starts at negative 3, with tick marks every one unit up to positive 3. The y-axis starts at negative 3, with tick marks every one unit up to three. Point A is left two units and up one unit from the origin. Point B is right two units and up one unit from the origin. Point C is down two units from the origin. Point D is left one unit and down one unit from the origin.
(−2, 1)
(−1, −1)
(0, −2)
(2, 2)
You can use these steps to work out the amount of income tax you pay each month.
Work out
monthly salary - 987.5
Work out
answer to Step 1 +5
Step 1
Step 2
Cho has a salary of £24 000 per year.
Helen has a salary of £1720 per month.
How much more income tax does Cho pay than Helen each month?
The amount more in income tax that Cho pays than Helen each month would be £56.
How to find the income tax ?First, find Helen's yearly salary :
= 1, 720 x 12
= £ 20, 640
Both Cho's and Helen's annual salaries fall within the Basic rate tax bracket.
Cho 's monthly tax would be:
= (( 24, 000 - 12, 570 ) x 20 % ) / 12
= £ 190. 50
Helen's monthly tax :
= (( 20, 640 - 12, 570 ) x 20 % ) / 12
= £ 134.50
The difference is therefore :
= 190. 50 - 134.50
= £56
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HELPPP ASPA 60 POINT!!!!!Show to draw a line segment that measures 92 millimeters. i need it to be in words not a photo please
A line segment that measures 92 millimeters in length can be drawn using scale.
Given that,
A line segment has to be drawn which has a measure of length 92 millimeters.
We know that,
10 millimeters = 1 centimeter
1 millimeter = 1/10 centimeters
92 millimeters = 92/10 = 9.2 centimeters
So it is enough to draw a line segment of length 9.2 centimeters.
In the scale, between a centimeter, there are 9 small lines which indicates the millimeters.
In between 9 and 10, there are 9 lines which indicates, 9.1, 9.2, 9.3, ....., 9.9 and after that is 10 cm.
So draw a line segment starting from 0 to 9.2.
Hence the line segment is drawn with scale.
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Meena has a pair of blue jeans with the design below on its back pockets.
60°
60°
Which of the following best describes the triangle with the given measures?
OA. obtuse isosceles triangle
OB. acute equilateral triangle
OC. obtuse equilateral triangle
OD. acute isosceles triangle
B
In geometry, an equilateral triangle is a triangle in which all three sides have the same length. In the familiar Euclidean geometry, an equilateral triangle is also equiangular.
An equilateral triangle can never be obtuse.
Abe purchased a second candle that is shorter with a wider diameter than the first candle. It is 8 inches in length, and this candle burns down at the rate of 2/5 inches per hour. How long can this candle burn before its length is zero inches?
Answer: The second candle can burn for 20 hours before its length is zero inches.
Step-by-step explanation:
If the second candle is 8 inches in length and burns down at a rate of 2/5 inches per hour, we can use a simple formula to find how long it can burn before its length is zero inches:
Number of hours = Length ÷ Rate of burn
Number of hours = 8 inches ÷ (2/5 inches per hour)
Number of hours = 8 inches × (5/2) hours per inch
Number of hours = 20 hours
Therefore, the second candle can burn for 20 hours before its length is zero inches.
The question is attached
The rules for the two graphs above are: A. first graph: y = 3 + x; second graph : y = 6 + x.
How to determine an equation of this line?In Mathematics and Geometry, the point-slope form of a straight line can be calculated by using the following mathematical equation (formula):
y - y₁ = m(x - x₁)
Where:
x and y represent the data points.m represent the slope.First of all, we would determine the slope of graph 1;
Slope (m) = (y₂ - y₁)/(x₂ - x₁)
Slope (m) = (4 - 3)/(1 - 0)
Slope (m) = 1/1
Slope (m) = 1
At data point (0, 3) and a slope of 1, a linear equation for this line can be calculated by using the point-slope form as follows:
y - y₁ = m(x - x₁)
y - 3 = 1(x - 0)
y = x + 3
Next, we would determine the slope of graph 2;
Slope (m) = (y₂ - y₁)/(x₂ - x₁)
Slope (m) = (7 - 6)/(1 - 0)
Slope (m) = 1/1
Slope (m) = 1
At data point (0, 6) and a slope of 1, a linear equation for this line can be calculated by using the point-slope form as follows:
y - y₁ = m(x - x₁)
y - 6 = 1(x - 0)
y = x + 6
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What is the Median of this set of data?
5, 0, 1, 3, 9, 0
Answer:
B. 2Step-by-step explanation:
To find the median of a set of data, we first need to arrange the data numbers from smallest to largest. The median is the middle data number in the list.
Given:
5, 0, 1, 3, 9, 0
Arrange the numbers:-
0, 0, 1, 3, 5, 9
Median = 1, 3
Since there are even amount of numbers, the median will be the average of the two middle data numbers.
To find the median, we'll add the numbers 1 + 3 and then divide them by two. (since they are 2 set numbers):-
1 + 3 = 44 / 2 = 2Therefore, the median of this set of data is 2.
__________________________
Hope this helps! :)
The drawer contains 18 spoons and 12 forks. you randomly choose two utensils. What is the probability that both utensils are spoons?
The probability that both utensils are spoons is 0.34.
The total number of utensils in the drawer is 18 + 12 = 30.
The probability of choosing a spoon on the first draw is 18/30, since there are 18 spoons in the drawer out of 30 utensils total.
After the first spoon is drawn, there are 17 spoons and 30 - 1 = 29 utensils left in the drawer.
The probability of choosing another spoon on the second draw is 17/29, since there are 17 spoons left in the drawer out of 29 utensils total.
To find the probability of both events happening (drawing two spoons), we need to multiply the probabilities of each event:
(18/30) * (17/29) = 0.34
Therefore, the probability of randomly choosing two spoons from the drawer is approximately 0.34 or 34%.
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help pleasee!!!!!!!!!!!!!
1. The Pythagoras theorem is (6+r)² = r²+9²
2. 36+12r+r² = r²+9²
3. The value of r is 3.75
What is Pythagoras theorem?Pythagoras theorem states that; the sum of the squares on the legs of a right triangle is equal to the square on the hypotenuse.
This means that, c² = a² + b²
In the triangle, 6+r is the hypotenuse, 9 and r are the other two legs.
therefore;
(6+r)² = r²+9²
= (6+r)(6+r) =r²+9²
36+6r+6r+r² = r²+9
36+12r+r² = r²+9
Collecting like terms
12r+r²-r²= 81-36
12r = 45
r = 45/12
r = 3.75
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Convert the given Cartesian equation into a polar equation.
3y=4x^2
Answer:r=3sinθ/4cos^2 θ.
Step-by-step explanation:
To convert to polar coordinates, we use the relationships
xy=rcosθ=rsinθ.
Substituting these into the given equation, we find
3y3rsinθ3rsinθ=4x2=4(rcosθ)2=4r2cos2θ
Divide each side of the equation by the common factor r to get
QUESTION 2: The Dlamini household uses a prepaid electricity system where they have to buy electricity and type in a code to load the units. When they bought the electricity they started with 165,43 kWh and after typing in the code they had 532,56 kWh. Remember that 1 kWh = 1 unit "They live in a house that has a value of R 750 000 so therefor do not have a fixed monthly charge. Use the following table and answer the questions that follow: ELECTRICITY TARIFFS FOR DOMESTIC TARIFF (Properties worth > R 400 000 & < R1 000 000) BLOCKS ELECTRICITY RATE (c/kWh) 229,00 c/kWh 278,46 c/kWh BLOCK 1 0-600 kWh BLOCK 2 > 600 kWh a) How many units of electricity did the Dlamini household buy? b) Write an equation to calculate the cost of purchasing between 0-600 kWh of units. c) Use this equation and calculate how they paid for the amount of units calculated in a).
The Dlamini household bought 367.13 units of electricity, and the cost of purchasing between 0-600 kWh of units is given by the equation cost = (units * 229) / 100. Using this equation, the cost of purchasing 367.13 units of electricity is R842.36.
How is this so?a) The Dlamini household bought 532.56 - 165.43 = 367.13 kWh of electricity.
b) The cost of purchasing between 0- 600 k wh of units can be calculated using the following equation
Cost = Units x Rate
where the Rate depends on the block the units fall into.
For Block 1, the rate is 229.00 c /kw h and for Block 2, the rate is 278.46 c/kWh. The equation for Block 1 can be written as.....
Cost = Units x 229.00 c/kWh
However, if the units purchased are more than 600 kWh, they will fall into Block 2, and the equation for Block 2 can be written as:
Cost = (600 x 229.00 c/kWh) + (Units - 600) x 278.46 c/kWh
c) From part (a), we know that the Dlamini household bought 367.13 kWh of electricity, which falls entirely in Block 2. Therefore, we can use the equation for Block 2 to calculate the cost
Cost = (600 x 229.00 c/kWh) + (367.13 - 600) x 278.46 c/kWh
= (137400 c) + (-7388.38 c)
= 130011.62 c
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Evaluate the author's argument. Discuss how she supports her claim.
Write 8
89
100
as a decimal number.
The number 889/100 as a decimal expression is 8.89
Expressing the number as a decimalFrom the question, we have the following parameters that can be used in our computation:
8
89
100
Express the number properly
So, we have the following representation
889/100
When 889 is divided by 100, we have
889/100 = 8.89
This means that the number as a decimal is 8.89
Hence. the number 889/100 as a decimal expression is 8.89
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Please help I forgot how to do this
(Photo below)
Answer: 1
Step-by-step explanation:
you can create a ratio because they are similar you can see that if you multiply 8 by 2 you get 16 so you divide 2 by 2 and you get x
11 less than the quotient of
4
44 and
�
xx.
The expression which is used to represents the statement "one-more than the quotient of a number x" and 4 is "x/4 + 1".
A "Quotient" is the result of a division operation between two numbers, where one number is divided by another. It represents the number of times one number is contained within another number.
An "Expression" is defined as "mathematical-phrase" which contain numbers, variables, and operators such as addition, subtraction, multiplication, and division. It can also contain functions and other mathematical symbols.
The quotient of a number"x" and 4 can be written as x/4.
So, one more than the quotient of a number x and 4 can be represented by the expression:
⇒ x/4 + 1,
Therefore, required mathematical expression is "x/4 + 1".
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The given question is incomplete, the complete question is
Write an expression to represent : One more than the quotient of a number x and 4.
Given the definitions of f(x) and g(x) below,
find the value of (gof)(-7).
f(x) = -2x - 13
g(x) = 2x² - 6x - 10
The indicated value (g o f)(-7) has a value of -14 when evaluated
Find the indicated value of the composite functionFrom the question, we have the following parameters that can be used in our computation:
f(x) = -2x - 13
g(x) = 2x² - 6x - 10
The indicated value of the function is
(g o f)(-7)
This means that
(g o f)(-7) = g(f(-7))
Calculate g(-7)
So, we have
f(-7) = -2(-7) - 13
f(-7) = 1
This means that
(g o f)(-7) = g(1)
Recall that
g(x) = 2x² - 6x - 10
Substitute the known values in the above equation, so, we have the following representation
(g o f)(-7) = 2(1)² - 6(1) - 10
Evaluate
(g o f)(-7) = -14
Hence, the value is -14
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Santos Company provided the following information for 2022:
Common Stock Outstanding 100,000 shares
Convertible Preferred, Total Par Value $50,000; Dividend Rate 4%; Convertible into 1,900 Common Shares Dividend Declared & Paid
Stock Options – A Exercise Price $12; Average Market Price $11; 3,000 Options
Stock Options – B Exercise Price $7; Average Market Price $8; 4,000 Options
Convertible Bonds, 5%, Face Value $1,000,000; Convertible into 40,000 Common Shares
Tax Rate 30%
Net Income $120,000
Round to nearest two decimal places.
Part A: Complete all steps to determine EPS to be reported including:
1. Computation of Basic EPS
2. Individual dilution/anti-dilution with decision making
3. Ranking of potential dilutors
4. Step-by-step inclusion of individual dilutors to arrive at reportable EPS with decision making.
Part B: Partial Financial Statement Presentation of EPS for this company for the current year (2022) with a proper heading. Start your partial statement with Net Income.
Reminder: You must show all supporting computations
Answer:
Part A:
1. Computation of Basic EPS
Basic EPS = (Net Income - Preferred Dividends) / Weighted Average Shares Outstanding²
Net Income = $120,000
Preferred Dividends = 4% x $50,000 = $2,000
Weighted Average Shares Outstanding = 100,000 (assuming no change in common stock during the year)
Basic EPS = ($120,000 - $2,000) / 100,000
Basic EPS = $1.18
2. Individual dilution/anti-dilution with decision making
We need to check if any of the convertible securities or stock options are dilutive or anti-dilutive by comparing their impact on EPS with the basic EPS.
Convertible Preferred: Each preferred share can be converted into 1.9 common shares (1,900 / 1,000). The conversion would increase the common shares outstanding by 1,900 and decrease the preferred dividends by $2,000.
EPS after conversion = ($120,000 - $0) / (100,000 + 1,900)
EPS after conversion = $1.16
Since this is lower than the basic EPS of $1.18, the convertible preferred is dilutive and should be included in the diluted EPS calculation.
Stock Options - A: Each option can be exercised at $12 to buy one common share when the average market price is $11. This means that the options are out of the money and would not be exercised by the holders. Therefore, they have no impact on EPS and are anti-dilutive.
Stock Options - B: Each option can be exercised at $7 to buy one common share when the average market price is $8. This means that the options are in the money and would be exercised by the holders. The exercise would increase the common shares outstanding by 4,000 and generate cash proceeds of $28,000 ($7 x 4,000). The cash proceeds can be used to buy back some common shares at the market price of $8. The number of shares bought back is 3,500 ($28,000 / $8). The net increase in common shares outstanding is 500 (4,000 - 3,500).
EPS after exercise = ($120,000 - $2,000) / (100,000 + 500)
EPS after exercise = $1.17
Since this is lower than the basic EPS of $1.18, the stock options - B are dilutive and should be included in the diluted EPS calculation.
Convertible Bonds: Each bond can be converted into 40 common shares (40,000 / 1,000). The conversion would increase the common shares outstanding by 40,000 and decrease the interest expense by $50,000 ($1,000,000 x 5%). The interest expense is net of tax, so we need to multiply it by (1 - tax rate) to get the after-tax amount. The tax rate is 30%.
EPS after conversion = ($120,000 - $2,000 + $50,000 x (1 - 0.3)) / (100,000 + 40,000)
EPS after conversion = $1.19
Since this is higher than the basic EPS of $1.18, the convertible bonds are anti-dilutive and should be excluded from the diluted EPS calculation.
3. Ranking of potential dilutors
We need to rank the potential dilutors from the most dilutive to the least dilutive based on their impact on EPS.
The most dilutive security is the convertible preferred with an EPS of $1.16.
The second most dilutive security is the stock options - B with an EPS of $1.17.
The least dilutive security is the convertible bonds with an EPS of $1.19.
4. Step-by-step inclusion of individual dilutors to arrive at reportable EPS with decision making.
We need to include the potential dilutors in order of their dilution until we reach a point where the next security would be anti-dilutive.
The first security to include is the convertible preferred.
EPS with convertible preferred = ($120,000 - $0) / (100,000 + 1,900)
EPS with convertible preferred = $1.16
The next security to include is the stock options - B.
EPS with stock options - B = ($120,000 - $0) / (100,000 + 1,900 + 500)
EPS with stock options