Answer:
Debit retained earnings for $15.30 million.
Explanation:
As per the data given in the question,
Declaration of common stock dividend indicates no cash payments, only extra shares issued with rate of stock dividend
In this Rick Co. had 30 million shares and Rick Co. declared 1% stock dividend
which means 30 million × 1% = 0.30 million shares issued
Retained earning = (0.30 million × $51)
= $15.30 million
To common stock A/c = (0.30 × $1) = $0.30 million
To capital paid in access A/c = (0.30 million × ($51-$1)) = $15.00 million
( Being stock dividend was issued at 1% )
Hence, Option (d) Debit retained earning for $15.30 million is correct.
Answer:
Penetration pricing
Explanation:
Is a marketing strategy used by businesses to attract customers to a new service or product. By offering lower price during its initial offering, thats the way they do. The lower price, helps a new producto or service penetrate the market and attract customers .
Answer: The bondholders decided to convert the bonds into common stock because they believed that getting $2250 today is worth more than $120 interest every year and a $1000 principal payment at the end of the bonds life.
Explanation:
1) In order to find out the number of bonds issued we need to divide 750,000 (Total ) by 1000(Face value of each bond).Total number of bonds issues therefore are 750.
2) A 12 percent convertible bond means that the bond pays a coupon of 120 ( 0.12 * 1000) every year.
3) Each bond is convertible into 25 shares , which means if one bond is converted into common stock, the bond holder can earn $1750. We calculate this number by multiplying the number of shares which is 25 into the current market price of the shares which is 70.
4) Also the company is offering an extra $500 per bond for converting it which means (500/25) an extra $20 per share.
5) So in total the bondholder by converting a bond and selling the shares he gets by converting it can earn $2250 per bond which they bought for a $1000 and gives them 120$ of interest every year.
6) SO to conclude the bondholders decided to convert the bonds into common stock because they believed that getting $2250 today is worth more than $120 interest every year and a $1000 principal payment at the end of the bonds life.
Answer:
The linear communication model explains the process of one-way communication, whereby a sender transmits a message and a receiver absorbs it. It's a straightforward communication model that's used across businesses to assist with customer communication-driven activities such as marketing, sales and PR.
Explanation:
Answer:
True
Explanation:
Businesses has always had its challenges and also more peculiar challenges from time immemorial and it is so even today despite several business models and the likes being in operation.
In the 1900s, one of the peculiar challenges of businesses was the inability of manufacturers to transport their goods from the point of production to the points of sale. In the 1900s, railways began to become more open than from the time of rail owners and also vehicles as we know today began to come into existence. Overtime, heavy duty vehicles capapble of transporting and lifting good from the point of production to its point of sale began to come up.
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