The expected return on the common stock should decrease.
To calculate the new expected return on the common stock, we need to calculate the new value of the common stock and debt. The new value of the common stock is $64 million + $16 million = $80 million. The value of the debt is reduced by $16 million to $20 million.
The new expected return on the common stock is 16.6% * ($80 million/$96 million) = 15.63%.
Therefore, the expected return on the common stock should decrease from 16.6% to 15.63%.
A security that symbolises ownership in a firm is called common stock. Common stock owners choose the board of directors and cast ballots for corporate rules. Long-term rates of return are often higher with this type of stock ownership.
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Answer:
The correct answer is Debit Unearned Plowing Revenue
Explanation:
Earlier the journal entry would be recorded as:
Cash A/c.................................................Dr $4,000
Unearned Plowing Revenue A/c..............Cr $4,000
But the correct entry that should be recorded is:
Cash A/c.................................................Dr $4,000
Plowing Revenue Earned A/c..............Cr $4,000
So, in order to pass the adjusting entry, we should debit the Unearned Plowing Revenue in order to reconcile or nill the same account by debiting.
Well obviously the economy is shrinking. people aren’t buying/trading much because they don’t want to risk going out and going through avoidable things you know?
Answer:D) increase output.
Explanation:
The marginal cost for production and marginal revenue are measures that businesses use in determining the amount of output and the price of a product that will enable them to maximize profits.
When the marginal revenues are greater than the marginal cost of production, then the firm is making profit per unit and should increase its production so as to make more output until profit is attained. When Marginal Revenue are lower or less than the marginal cost of production, then the firm is making a loss per unit and should decrease its production.
Here, competitive firm is producing at an output where marginal revenue is $23 and marginal cost is $19, then to maximize profits the firm should <u>increase output .</u>
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Explanation:
GIVEN DATA:
Alpha reported = $200,000
withdrew = $30,000
corporate income tax rate = 30%
personal income tax rate = 15%
SOLUTION:
we get here total amount of tax collect as
total amount of tax collect = Alpha reported amount × personal income tax rate ...............1
put here value
total amount of tax collect = $200,000 × 15%
total amount of tax collect = $30,000
here no corporate tax required and partner is taxed on share of total partnership income regardless of amount withdrawn
so the correct answer is $30,000
