Cost of common equity is 12.71%.
The computation of the cost of common equity using the DCF approach is shown below:
As we know that
Cost of common equity = Current year dividend ÷ Current price of the stock + growth rate
= $1.89 ÷ $24.50 + 0.05
= 0.0771 + 0.05
= 12.71%
We simply applied the above formula so that the cost of common equity could arrive. Given the options available, the par value of common stock "doesn't matter much because the state uses other means to prevent shareholders from withdrawing capital from troubled companies." Also, the par value of common stock was "introduced to prevent bankrupt companies from unfairly allocating corporate resources".
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Jin-Lo is investing money for his company. He notices that the interest rate on borrowing in Jakarta is 2 percent and the interest rate on bank deposits in Warsaw is 7.5 percent. In this situation, a carry trade would occur when Jin-Lo
A.borrows money in Jakarta currency and invests in stocks with good growth potential in Jakarta.
B.borrows money in Jakarta currency, converts it into Warsaw currency, and deposits it in a Warsaw bank.
C.invests in bank deposits of Warsaw and reinvests the earnings in Jakarta.
D.invests in bank deposits of Jakarta and reinvests the earnings in Warsaw.
Borrows money in Jakarta currency, converts it into Warsaw currency, and deposits it in a Warsaw bank.
A foreign money[a] is a standardization of money in any form, in use or flow as a medium of change, as an instance banknotes and coins.[1][2] A extra trendy definition is that a currency is a system of money in common use within a selected surroundings through the years, specifically for people in a state nation.[3] beneath this definition, the British Pound Sterling (£), euros (€), jap yen (¥), and U.S. bucks (US$)) are examples of (government-issued) fiat currencies.
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which of the following must be undertaken when the treatment and control groups differ with regard to some independent variable, x1. which of the following must be undertaken when the treatment and control groups differ with regard to some independent variable, x1. run an intention-to-treat analysis run a 2sls model where the instrument is the random assignment use multivariate ols and control for x1. restart the experiment and pick a new randomized sample.
Run a 2SLS model where the instrument is the random assignment option B is the right answer.
As is common knowledge, when dealing with the endogeneity issue in OLS, 2SLS is employed as an alternative strategy. When the instrumental variable is used in 2SLS and the explanatory variable correlates with the error term, the endogeneity problem is resolved. Therefore, it must be done when the treatment and control groups differ with regard to an independent variable, X1, which will indicate a biased outcome.
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some individuals facing financial emergencies will attempt to skip certain payments to make other payments. this strategy is generally not helpful because:
Opportunity costs are the possible advantages that a person, financial investment, or company forgoes while deciding between two possibilities. Opportunity costs are easy to ignore since they are by nature invisible.
Commercial banks, trust companies, financial investment banks, brokerage houses or investment dealers, insurance companies, and asset management funds are some of the most typical categories of financial organisations. Costs that have already been paid for but cannot be recouped are known as sunken costs. The opportunity cost is the value of other commodities or services you must forgo in order to receive your desired item. The term "cost" is frequently used by economists to refer to opportunity cost.
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the term business environment refers to which impact functioning of a firm. a. external factors b. internal factors c. management related factors d. internal and external factors clear my choice
The correct response is d. internal and external factors. The term business environment refers to the internal and external factors that affect the functioning of a firm.
You have power over internal factors because they originate from within you. Your emotions and beliefs affect internal elements. These might be advantageous or harmful. Making decisions will be made easier if you have positive thoughts rather than negative ones. Things outside of a firm that affect its success are known as external factors. They may have a beneficial or negative effect. External variables are beyond the control of a company. Its only option is to respond to them by taking actions that will support its continued prosperity. Events occurring within an organization are referred to as internal environmental factors. Events that occur outside of the organization are known as external environmental factors, and they are more difficult to predict and control.
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determine the amount of cash received from customers for each of the three independent situations below. all dollars are in millions.
situation sales revenue, account receivable ,cash received increase, decrease from customer 1. 100 0 100 2. 100 5 95 3. 100 5 105
What is Sales Revenue?Frequently, the phrases revenue and sales revenue are used synonymously. However, revenue includes income from sources other than those directly connected to the core business, such as interest from savings or cash distributed through dividends. Sales revenue is defined as the revenue derived from the sale of goods and services. Non-operating income is what it is called here. In a poll conducted by Brainyard called "State of the CFO," 80% of CFOs reported that KPIs pertaining to revenue, income, and sales growth were the most crucial. Maintaining accurate records of sales revenue is the cornerstone of the income statement and the primary determinant of the company's profitability. When determining other significant KPIs, such as Days to Solvency, it is also a crucial factor.
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the mean loan interest rate of two competing banks is to be compared. twenty-four loans are randomly sampled from each bank. both populations have normal distributions with known standard deviations. in the search to determine if loans from bank 1 have a higher interest rate than loans from bank 2, state the null and alternative hypotheses.
The null and alternative hypothesis are H0:μ1=μ2; Ha:μ1≠μ2
In order for loans from dealership 1 to be different from loans from dealership 2, the mean loan rate of loans from dealership 1 must be greater or less than the mean loan rate of loans from dealership 2.
In other words, the mean loan rate must be unequal: μ1≠μ2. The null hypothesis must have some form of equality, so Ha is μ1≠μ2 and H0 is μ1=μ2.
What is null hypothesis?
The alternate hypothesis is the antithesis of the null hypothesis, or H0, which is the widely acknowledged truth. Researchers try to refute, reject, or nullify the null hypothesis. Researchers develop a competing hypothesis that they believe explains a phenomenon before working to disprove the null hypothesis.
The null hypothesis in inferential statistics is that two scenarios are equal. The underlying assumption is that the discrepancy is just the result of chance. It is feasible to determine the probability that the h0 is correct using statistical testing.
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(b) suppose a random sample of 40 houses are selected from the city. estimate the probability that the mean value of the 40 houses is less than $500,000. show your work.
The probability that the mean value of the 40 houses is less than $500000 is 0.9863
The probability of an event occurring is defined by chance. There are numerous instances in real life where we may need to make predictions about how something will turn out. The outcome of an event may be known to us or unknown to us. When this happens, we say there is a chance that the event will happen. In general, probability has many significant applications in games, in business to make predictions based on probability, and in this new branch of artificial intelligence.
Given that, n=40
Here, we have to find P(X<500000)
Thus, using a standard normal table we can find the probability as,
P(X<500000)
[tex]P((X-bar - Mean/Std deviation)/\sqrt{n}) < ((500000-403000/278000)/\sqrt{40} )[/tex]
=P(Z<2.2068)=0.9863
Hence,
P(X<500000)=0.9863
Hence, the probability that the mean value of the 40 houses is less than $500,000 is 0.9863
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which of the following are examples of investment policy distortion that can be caused by financial distress?
Shareholders are individuals, companies or institutions that own at least one share in a company. In this case, the name of the shareholder is published in the share certificate. A company, whether public or private, can issue such share certificates.
Shareholders can get profits in the form of increasing the value of shares or dividends from company profits. Shareholders can also suffer losses if the company's stock price drops. Besides being able to get profits according to the company's performance, shareholders also have rights over several things related to the company. In addition, shareholders also have several obligations.
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hedging, or reducing risk, is the same as adding value or return to the firm. group of answer choices true false
false Hedging, or lowering risk, is the same as increasing the firm's value or return.
How might currency risk be reduced through hedging?hedging to reduce the risk of currency loss. Foreign exchange risk is an unavoidable reality for businesses doing business in other countries, although hedging can help reduce the risk. By taking a contrary position in a comparable asset, the hedging technique seeks to reduce risks associated with financial assets.
What does hedge mean?A approach for reducing the risks associated with financial assets is hedging. It uses market tactics or financial instruments to reduce the risk of any unfavorable price changes. To put it another way, investors use a trade in another investment to protect one investment.
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deadweight losses represent the a. inefficiency that taxes create. b. increase in revenue to the government. c. shift in benefit from producers to consumers. d. part of consumer and producer surplus that is now revenue to the government.
Deadweight losses represent the inefficiency that taxes create. (option A).
What does deadweight loss?Deadweight loss is the inefficiency that occurs when the market is not in equilibrium. The market is is in disequilibrium when the quantity demanded is not equal to the quantity supplied.
A tax is a complusory amount that i levied by the government or an agency of the government on goods and services. When taxes are introduced, most times, the quantity demanded or the quantity supplied changes. This would lead to a market disequilibrium and a deadweight losses.
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True or false: Budgetary Fund Balance - Reserve for Encumbrances reflects resources committed by placing purchase orders or signing contracts.
It is TRUE that, Budgetary Fund Balance - Reserve for Encumbrances reflects resources committed by placing purchase orders or signing contracts.
The management of trust funds and some research funds depends on three balances: budget balances, fund balances, and cash balances. Cash balances display how much money you actually have on hand.
There are two significant differences between budget balances and fund balances. First, total assets minus total liabilities equals a fund's life-to-date net worth, which is what is meant by "fund balance." On the other hand, a budget balance is the amount of the budget that was allocated for a given time period that is still available.
While budget periods typically last for one fiscal year, trust funds and the majority of research funds have a multi-year life. As a result, the balance of the life-to-date fund is frequently different from the balance of the time-bound budget.
The ledger each balance is based on is a significant additional distinction between budget balances and fund balances. The basis for calculating budget balances is the budget ledger, which records transactions that have passed budget checking but may not yet have received approval or been posted. The GL Actuals ledger, which only displays posted transactions, is the basis for fund balances. In light of this, the balances will vary since they are derived from transactions at various points in their lifecycle.
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Problem 11-02A a-c (Part Level Submission)
Fechter Corporation had the following stockholders’ equity accounts on January 1, 2020: Common Stock ($5 par) $500,000, Paid-in Capital in Excess of Par—Common Stock $200,000, and Retained Earnings $100,000. In 2020, the company had the following treasury stock transactions.
Mar. 1 Purchased 5,000 shares at $8 per share.
June 1 Sold 1,000 shares at $12 per share.
Sept. 1 Sold 2,000 shares at $10 per share.
Dec. 1 Sold 1,000 shares at $7 per share.
Fechter Corporation uses the cost method of accounting for treasury stock. In 2020, the company reported net income of $30,000.
Open accounts for (1) Paid-in Capital from Treasury Stock, (2) Treasury Stock, and (3) Retained Earnings. (Post to T-accounts.) (Post entries in the order of journal entries presented in the previous part.)
The Paid-in Capital from Treasury Stock is $8,000.
Paid in Capital from Treasury Stock
Dec. 1 $ 1,000 Jun. 1 $ 4,000
Sep. 1 $ 4,000
Dec 31 Bal $ 7,000
Treasury Stock
Mar. 1 $ 40,000 Jun. 1 $ 8,000
Sep. 1 $ 16,000
Dec. 1 $ 8,000
Dec. 31 Bal $ 8,000
Retained Earnings
Jan. 1 Bal $ 100,000
Dec. 31 $ 30,000
Dec 31 Bal $ 130,000
Any excess on sale of treasury stock over cost is credited to paid in capital and any loss is debited to paid in capital to the extent of balance in paid in capital.
Treasury stock , also referred to as treasury stocks or reacquired stock, refers to formerly amazing stock that has been offered back from stockholders via the issuing organisation. The result is that the overall number of notable stocks on the open marketplace decreases.
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if the supply of gasoline falls, it will push the price of gasoline , reducing the use of gas-guzzling farm machinery, the product of farm workers.
As gasoline supplies decline, prices rise and less gas-guzzling farm equipment is used, which could raise marginal product.
What materials makes up gasoline?
Numerous distinct compounds containing hydrogen and carbon make up gasoline (hydrocarbons). About 150 distinct hydrocarbons, including butane, propene, isopentane, and the BTEX chemicals, are often included in a normal gasoline combination (benzene, ethylbenzene, toluene, and xylenes)
Is fuel oil a gas?
Gas is the term used in both British and American English to describe the air-like material that burns readily and is used for heating and cooking. Gas, or gasoline, is another name for the substance that serves as a vehicle's fuel in American English.
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suppose the federal government charters a corporation to help regulate financial matters across state borders. this corporation would be a(n) .
The federal government charters a corporation to help regulate financial matters across state borders.A business that has international operations.A company that conducts business internationally is known as a multinational corporation.
Worldwide, multinational firms are present in a variety of locations. They carefully research the cultures of the nations they intend to infiltrate because they are aware that their success depends on blending the cultures of their home nations with those of the nations they are about to build.Modern trade accords have made it possible for multinational corporations to operate all over the world, as is the case with the Coca-Cola Company, Walmart, IBM, Apple, Amazon, and automakers like Ford, Toyota, Honda, and Fiat.A corporation typically receives its charter from the state government when it is established.Corporations receive a state government charter and are subject to the laws of the state where they are registered.
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question 31 pts suppose that two players are playing the following game. player 1 can choose either top or bottom, and player 2 can choose either left or right. the payoffs are given in the following table: where the number on the left is the payoff to player a, and the number on the right is the payoff to player b. if each player plays their maximin strategy, the outcome of the game will be player b player a left right top 8 1 2 6 bottom 3 5 4 2 group of answer choices top/left top/right bottom/left bottom/right
A) Player 1 does not have a dominant strategy because if player 2 plays left, then player 1 should play bottom but if player 2 plays right then player 1 should play top. For a dominant strategy to existing player 1 would have to chose top or bottom regardless of what player 2 does.
B) Player 2 has a dominant strategy of left because this always produces a better outcome for this player. Specifically, if player 1 plays top player 2 is better off playing left (since 5 > 4) and if player 1 plays bottom player 2 is still better off playing left (since 4 > 3)
C) i) Top/Left is not a Nash Equilibrium because if player 2 plays left then player 1 would be better off playing bottom and it only takes one player wanting to deviate to ruin a potential Nash Equilibrium.
ii) Top/Right is not a Nash Equilibrium because given player 1's choice of top, player 2 would play left.
iii) Bottom/Left is a Nash Equilibrium because no player is better off deviating given the action of the other player. Specificially, given player 1's choice of bottom, player 2 would be worse off chosing right (since 3 < 4) so player 2 will not deviate. Given player 2's choice of left, player 1 would be worse off playing top (since 6 < 7) so player 1 also will not deviate.
iv) Bottom/Right is not a Nash Equilibrium because given player 1's choice of bottom, player 2 would be better of playing left (since 4 > 3).
Economic market equilibrium occurs whilst supply and calls for degrees align, creating ideal marketplace conditions for consumers and dealers. The sorts of financial equilibrium encompass microeconomic and macroeconomic. In microeconomics, delivery and call between buyers and sellers are balanced.
Simplest 3 varieties of stresses can exchange the composition of an equilibrium aggregate: (1) a change inside the concentrations (or partial pressures) of the additives by using adding or doing away with reactants or merchandise, (2) an alternate in the general strain or quantity, and (three) an exchange within the temperature of the gadget.
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A supervisor noticed that zelda spent a lot of time at the water cooler gossiping about the others. The supervisor asked other employees not to go to the water cooler when zelda was there. By the end of the week, zelda was no longer hanging out by the cooler. The supervisor used _______ to control this situation.
In a case whereby A supervisor noticed that zelda spent a lot of time at the water cooler gossiping about the others By the end of the week, zelda was no longer hanging out by the cooler. The supervisor used C) negative reinforcement to control this situation.
What is Negative reinforcement?Negative reinforcement can be described as the encouragement of certain behaviors which ca be acheived through the process of removing or avoiding a negative outcome or stimuli.
It shopuld be noted that People typically use this technique so tbhat they can make sure that children learn good patterns of behavior howver it can also play a role in training animals and pets.
Therefore, option C is correct.
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missing options:
A) extinction
B) positive reinforcement
C) negative reinforcement
D)determinism
E) positivism
while performing tests of controls, thaw and associates, llp, traces a sample of cash receipts to postings in the correct customers’ subsidiary receivable account. this is a test of controls primarily providing evidence related to which management transaction assertion?
Classification Management transaction assertion is an illustration of a cash reception.
Management Assertions: What Are They?Management assertions are statements made about certain elements of a firm by members of management. The idea is mostly applied to the audit of financial accounts of a firm, where the auditors rely on a number of assertions about the company.
Transaction assertion - what is it?Sales, purchases, and wages paid during the accounting period are all considered transactions. All of the assets, liabilities, and equity interests listed in the statement of financial position at the period's conclusion are included in account balances. These include claims of existence, completeness, rights, and obligations, as well as of accuracy and value, presentation, and disclosure.
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the irs scrutinizes related party transactions more carefully than transactions occurring in a public market. group startstrue or false
The IRS scrutinizes related party transactions more carefully than transactions occurring in a public market. This statement is true.
What information must be disclosed in disclosures about connected parties?The consolidated and separate financial statements of a parent or investors with joint control of, or considerable influence over, an investee reported in accordance with IFRS 10 are required to disclose related party relationships, transactions, and outstanding balances, including obligations.
IAS 24's main goal is to make sure that an entity's financial statements contain the disclosures necessary to highlight the possibility that the existence of related parties, as well as transactions and outstanding balances with them, may have had an impact on the entity's financial position and profit or loss.
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the nominal, risk-free rate on t-bills recently is %. if the real rate of interest is %, what is the exact and approximate expected level of inflation?
If the nominal, risk-free rate on T-bills recently is 1.23% and if the real rate of interest is 0.80%, than the exact and approximate expected level of inflation is 0.427%.
The nominal risk-free rate is often the present yield of the 3-month Treasury bill while not taking under consideration the impact of inflation. the important safe rate is that the yield of the 3-month Treasury bill minus the impact of inflation.
Rate of interest is quantity|the quantity|the number} charged over and higher than the principal amount by the investor from the recipient. In terms of the receiver, an individual UN agency deposits cash to any bank or financial organization additionally earns further financial gain considering the continuance of cash, termed as interest received by the investor.
The question is incomplete, find the complete question here
The nominal, risk-free rate on t-bills recently is 1.23%. if the real rate of interest is 0.80%, what is the exact and approximate expected level of inflation?
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is thinking about buying an investment that represents an ownership claim on a company. the most important priority he has with this investment is receiving his dividends before dividends are paid on other types of investments. what investment is thinking about purchasing?
To receive his dividends before payouts on other sorts of investments are paid is his investment's top priority. Considering investing in preferred stocks.
Because they provide their owners a priority claim whenever a business pays dividends or distributes assets to shareholders, preferred shares get their name. Preferred shareholders usually do not have a vote in corporate elections, and therefore do not give any preference in corporate governance.
The answer is based on your risk appetite and investing objectives, as with other investments. Preferred stock is a good option for investors seeking better returns than bonds and the possibility of bigger dividends than regular shares. Preferred stock is, in essence, safer than regular stock but riskier than bonds.
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a situation in which individuals, firms, or any group of actors coordinate their actions to achieve a desired outcome is:
Collusion occurs when businesses or any other group of individuals plan their activities to produce a certain result.
What does a business firm do?A firm the for business entity that offers professional services, such as a franchise, corporate body (LLC), or partnership. Most businesses only have one location.
Company: Is it a firm?A firm is a business that makes a profit by providing products and services, frequently business services. A business, on the other hand, is a firm that participates in any transaction that brings in money either through the sale of goods and services, which includes all commercial structures and trades.
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what term best describes a scenario in which an employer subsidizes the purchase of an employee's personal mobile device, giving the employee the option of buying a more expensive device if the employee pays the difference?
Shared ownership best describes a situation in which an employer subsidizes the purchase of an employee's personal mobile device, allowing the employee to purchase a more expensive device if the employee pays the difference.
A government, organization, or other group paying a portion of the cost of something. A government payment to people or businesses, whether direct or indirect, usually takes the form of cash or a targeted tax break.
In general, a subsidy affects a market by lowering the price paid by buyers while increasing the quantity sold. Subsidies are typically inefficient because they cost more than they provide in terms of benefits.
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an emergent leader is a leader who emerges within a workgroup without having formal authority in the organization.
A leader who emerges within a workgroup without formal authority within the organization is known as an emergent leader because Despite having formal authority, leaders in organizations and other settings primarily use their informal authority to influence others.
Emergent leadership happens when a group member takes the reins of the group over time via group interactions rather than being named or voted as the leader. Additionally, it gives team members the freedom to make judgments that go against the grain of an organization's conventional hierarchy. An emergent leader, on the other hand, is someone who rises to the position of leadership as a result of how other group members perceive them.
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comapny a pays a dividend of 2%. company b's stock price increases 1% pkus the inflation rate every year. company c pays 3% dividends, and its stock price decreases every year by 2%. compnay d pays 0% in dividents and its price stock does not increase year over year. if the comapnies are otherwise identical, which owuld you invest in
Based on the investment strategy, and the situation described in the question, the company I would invest in is Company B.
What is the Stock price?The stock price is a business term that is used to describe the price of a single share of several saleable equity shares of a company.
Generally, the stock price is often referred to as Share price, and it is used to describe the highest amount individuals or investors are willing to pay for the stock, or the lowest amount that it can be sold for.
In this case, Company A's dividend of 2% is a good deal, but not the best among the available options.
Company C's 3% dividend is enticing but with a decrease in stock price, every year by 2%, this makes it not to be a good deal in the long run.
Company D's 0% dividend, with no increment in the stock price, makes the deal not lucrative.
However, Company B's 1% increase in stock price every year, plus inflation rate adjustment, makes it the best deal available.
Hence, in this case, it is concluded that the correct answer is Company B.
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Based on what you understand about risk and return, why is investing in single stocks a bad idea?.
An individual stock carries more risk than a mutual fund. This type of risk is known as unsystematic risk.
Why is investing in single stocks a bad idea?Enlisted below are some of the reasons why investing in single stocks is a bad idea :
1. It requires a lot of effort, knowledge, and objectivity :
Investing in individual stocks without having the time or knowledge to conduct basic research and analysis is rarely successful. Most often, experienced fund managers, brokers, and financial analysts at major institutional investing firms are the ones that analyze stock picks. These people have access to cutting-edge investment instruments. Additionally, they have the time and expertise to read financial documents like SEC filings and earnings reports. Many investors' emotions cloud their judgment, preventing them from making rational buy and sell decisions. When you invest in specific stocks, it's really simple to develop an emotional bond with the businesses you've chosen.
2.Higher price :
You will pay commission fees each time you choose to buy or sell a stock. These costs can range from $3 to $8 depending on your broker. While that amount might not seem like much, if you own many individual stocks and engage in frequent trading, it can add up quickly. In addition to the cost, this has a significant drawback in that it might cause you to reconsider selling a stock to avoid the transaction costs. You could end up keeping an investment that is losing value for longer than you should, which would only increase your loss.
3. The possibility of loss is higher :
It is very difficult to achieve the level of diversification required to counteract your losses when investing in individual stocks. The fact that managed funds, including ETFs and mutual funds, typically hold investments in a variety of businesses is the main factor explaining why they experience less value fluctuation than individual stocks. As a result, even if the price of one stock falls, the fund as a whole keeps its value. Additionally, there is less trading activity, which keeps the cost of transactions down.
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in september, the board of directors of chaparral steel approved a stock split of 3-for-2. after the split, how many shares of chaparral steel stock will an investor have if he or she owned 400 shares before the split?
An investor will have 600 shares if he or she owned 400 shares before the split.
Given,
Split Ratio = 3:2
Pre-split shares of chaprral steel stock = 400
According to Stock-split formula,
Total number of shares post stock split = number of shares held x number of new shares issued for each existing share.
Post split shares = 400 x (3/2)
= 600 shares
Therefore, the total number of shares he/she will own after the stock split will be 600 shares.
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how are flexible exchange rates determined? part 2 a. the exchange rate is determined where the current account is equal to the capital account. b. the exchange rate is determined where the quantity of exports demanded is equal to the quantity supplied of exports. c. the exchange rate is determined where the quantity of exports demanded is equal to the quantity supplied of imports. d. the exchange rate is determined where the quantity of a currency demanded is equal to the quantity supplied of the currency.
Exchange rates in a flexible exchange rate are generally determined by market forces of supply and demand for foreign exchange.
What factors influence the value of a flexible exchange rate?Governments and central banks do not participate in the foreign exchange market in a free-floating exchange rate system. The interaction between governments and central banks and currency markets is similar to the traditional relationship between these organisations and stock markets. Governments may control stock markets in order to avoid fraud, but stock prices are left to float in the market. For example, the United States government does not meddle in the stock market to influence stock prices. A self-regulating system is one of the benefits of a free-floating system. If the currency rate is left to the market, there is no need for government involvement.
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i agent is permitted to share in the gain and loss of a customer account if a joint account is opened with the customer and sharing is proportional to capital contributed ii agent is not permitted to share in the gain and loss of a customer account if a joint account is opened with the customer and sharing is proportional to capital contributed iii investment adviser representative is permitted to share in the gain and loss of a customer account if a joint account is opened with the customer and sharing is proportional to capital contributed iv investment adviser representative is not permitted to share in the gain and loss of a customer account if a joint account is opened with the customer and sharing is proportional to capital contributed
A joint account is a bank account that two or extra folks share. Joint account holders have equal access to all funds.
Signatures of one or all account holders can also be required for transactions carried out through a joint account. Joint money owed come with all the advantages you get with a fundamental savings account
Can a patron open two money owed in same bank?While there may be no restriction to how many Savings Accounts you can have, there are a few matters to reflect onconsideration on earlier than signing up for extra than one.
Most often, joint bills are held via one person and a spouse or partner, household member or enterprise partner, but it's possible for any two people to open a joint bank account together.
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https://brainly.com/question/28725591#SPJ4the company's stock currently sells for $42 per share and a 10 percent stock dividend is declared, how many new shares will be distributed? show how the equity accounts would change the company declared a 25 percent stock dividendhow would the accounts change?
1) The number of new shares distributed when a 10 percent stock dividend is declared on 45,000 outstanding shares is 4,500 shares.
2) The effects on the equity accounts arising from the 10% stock dividend are as follows:
Retained Earnings = -4,500 x $42 (reduction)Common Stock = +4,500 shares at par value (increase)Additional Paid-in Capital = +4,500 ($42 - par value) Increase.3) The effects on the equity accounts arising from the 25% stock dividend are as follows:
Retained Earnings = -11,250 x $42 (reduction)Common Stock = +11,250 shares at par value (increase)Additional Paid-in Capital = +11,250 ($42 - par value) Increase.What is a small stock dividend?A stock dividend is the distribution of retained earnings in the form of shares instead of cash.
A stock dividend is small when the number of shares issued is less than 25% of the total value of shares outstanding.
The journal entry to record a small stock dividend is to transfer the market value of the issued shares from the retained earnings to the paid-in capital (Common Stock and Additional Paid-in Capital) accounts.
Transaction Analysis for Stock Dividend of ≤ 25%:Debit Retained Earnings (market value)
Credit Common Stock (par value)
Credit Additional Paid-in Capital (with excess)
With a 10% Stock Dividend:Current selling price per share = $42
The number of outstanding shares = 45,000
Stock dividend declared = 10% of 45,000 = 4,500
With a 25% Stock Dividend:Current selling price per share = $42
The number of outstanding shares = 45,000
Stock dividend declared = 25% of 45,000 = 11,250
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Question Completion:The number of outstanding shares is 45,000
to finance some manufacturing tools it needs for the next 3 years, waldrop corporation is considering a leasing arrangement. the tools will be obsolete and worthless after 3 years. the firm will depreciate the cost of the tools on a straight-line basis over their 3-year life. it can borrow $4,800,000, the purchase price, at 10% and buy the tools, or it can make 3 equal end-of-year lease payments of $2,100,000 each and lease them. the loan obtained from the bank is a 3-year simple interest loan, with interest paid at the end of the year. the firm's tax rate is 40%. annual maintenance costs associated with ownership are estimated at $240,000, but this cost would be borne by the lessor if it leases. what is the cost of owning, in in thousands? (suggestion: delete 3 zeros from dollars and work in thousands.) (note: the same information is used for this problem and also next two problems)
The cost of owning, in in thousands $106 is the price of ownership.
What aims does the maker want to accomplish?A manufacturer is a person or company that transforms raw materials into completed goods using a range of tools, equipment, and processes before selling those goods to consumers, wholesalers, distributors, retailers, or other manufacturers who can use them to create more complex goods.
What constitutes a crucial aspect of manufacturing?Factors that manufacturers must take into account include procedures, personnel, technical details, and the finished product. Above all, producers must consider safety at every stage. It is vitally important for manufacturers to prioritise safety above all else.
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Waldrop Corporation is thinking of entering into a contract to pay for some manufacturing equipment it requires for the following three years. The cost of ownership is $106, expressed in thousands of dollars.
What does ownership actually mean?The right of using, possess, and donate anything is known as possession. Ownership can refer to tangible items like real estate and real assets or it can refer to intangible things like property rights.
Why does ownership matter?Ownership is crucial for workers, management, and the entire company. Employees who take ownership are better able to: Develop a relationship of trust with their boss and other workers. Boost their sense of worth and self-assurance.
Briefing:PV cost of Owning =208000/(1+6%)+208000/(1+6%)
= 2-4592000/(1+6%)^∧ 3=$3474,186
PV cost of leasing =-1260,000^⋆ (1/(1+6%)+1/(1+6%)
= 2+1/(1+6%)^∧ 3)
= - $3367,995
NAL= PV cost of owning -PV cost of leasing
=$3,474,186-$3,367,995
NAL =$106,191
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