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1 year ago

A 2-for-1 stock split increases the marketability of the stock because.

1 answer:

Nutka1998 [239]1 year ago

7 0

The reason why a stock-split of 2-for-1 can be said to increase a stock's marketability is that the market price for each share decreases.

<h3>What does a 2-for-1 stock split do?
</h3>

When a stock is split in this manner, it means that there will now be two stocks for every stock there was before.

This means that the price of every stock will be halved. This increases marketability because the lower market price makes the stock cheaper for people to buy.

Find out more on stock splits at brainly.com/question/14247504.

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The person responsible for having the shipping papers on a ship carrying hazardous cargo is the

stira [4]

This would be the captain. If you need any further explaining, defining, or methods of answering, let me know and I'll do my best to help further. :)

8 0

3 years ago

Kate's 24-Hour Breakfast Diner menu offers one item, a $5.00 breakfast special. Kate's costs for servers, cooks, electricity, fo

REY [17]

Answer:

The correct answer is option c.

Explanation:

The price of Kate's breakfast special is $5.

The average variable cost is $3.95.

The average fixed cost is $1.25.

The average total cost

= $3.95 + $1.25

= $5.20

The price is not covering the average total cost but it is covering the average variable cost. The firm can continue operating in the short run but stop production in the long run.

6 0

3 years ago

On January 1, 2020, Hat Trick Manufacturing exchanged some equipment for a $750,000 zero-interest-bearing note due on January 1,

Marina86 [1]

Answer:

61,198.47

Explanation:

First we solve for the present value of the note receivables at January 1st, 2021 As we are asked for the interest revenue on the 2021 incoem statment

$\frac{Maturity}{(1 + rate)^{time} } = PV$

Maturity $750,000.00

time 2.00

rate 0.10000

$\frac{750000}{(1 + 0.1)^{2} } = PV$

PV 619,834.7107

now, we calcualte the interest considering the 10% implicit interest

619,834.7107 x 0.10 = 61,198.47

This will be the interest revenu for the year 2021

4 0

3 years ago

Eastevan Company calculated its return on investment as 10 percent. Sales are now $300,000, and the amount of total operating as

galben [10]

Answer:

a) 18.75%

b) $ 149333.33

Explanation:

Given:

Return on investment = 10% = 0.1

Total sales = $ 300000

Total operating assets = $ 320000

Reduction in expenses = $ 28000

a) The return on investment is calculated as:

Return on investment = Net income/ operating assets

on substituting the values, we get

0.1 = Net income/ $ 320000

Net income = 0.1 × $ 320000

Net income = $ 32000

The reduction in expenses is the amount that has been gained i.e the net income will increase

thus, the net income = $ 32000 + $ 28000 = $ 60000

now,

the return on investment for the latest net income will be

Return = $ 60000/$320,000

Return = 18.75%

b) for the condition given in the second case

we have

Return = 18.75%

Net income = $ 32000

Return = Net income/ operating asset

18.75% = $32000/ operating asset

Operating asset = $32000/0.1875

Operating assets = $ 170666.67

Now, the decrease of the operating asset from the actual asset = $ 320000 - $ 170666.67 = $ 149333.33

Thus, the operating cost must decrease by $ 149333.33

3 0

3 years ago

Copper Corporation owns stock in Bronze Corporation and has net operating income of $900,000 for the year. Bronze Corporation pa

denpristay [2]

Answer:

The correct option is C that is $120,000

Explanation:

The amount of dividends received deductions grounded on the percentage of the ownership through the corporate shareholder. The copper corporation owns 65% of the Bronze corporation. So, the copper qualify for the 80% deduction or amount of $120,000.

In this case, 80% deduction would be:

= $150,000 × 80%

= $120,000

So, the amount of deduction is $120,000.

5 0

3 years ago