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Nikitich [7]
2 years ago
13

The effect of repurchasing stock using the cost method is to ______. (Check all that apply.) Multiple select question. decrease

assets decrease stockholders' equity increase Treasury Stock decrease liabilities increase liabilities decrease Treasury Stock increase assets
Business
1 answer:
jarptica [38.1K]2 years ago
3 0

The effect of repurchasing stock using the cost method is to Increase Treasury Stock, Decrease stockholders' equity ,Decrease Assets.

<h3><u>What is Cost Method?</u></h3>
  • Certain investments are recorded using the cost method of accounting in a company's financial statements.
  • When an investor holds an investment that it has little or no control over—typically described as owning less than 20% of the company—they employ this strategy. On the balance sheet, the investment is listed as an asset at its historical cost.
  • The investor lists the investment's cost as an asset. Dividend income is recorded as income when it is received and appears on the income statement.
  • Depending on the investor's accounting principles, the receipt of a dividend also boosts the cash flow, either in the investing portion or the operational area of the cash flow statement.

Treasury stock, commonly referred to as treasury shares or reacquired stock, describes previously outstanding stock that the issuing corporation purchases back from stockholders. The effect of repurchasing stock using the cost method increases treasury stock.

Know more about Cost Method with the help of the given link:

brainly.com/question/14917620

#SPJ4

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Josh purchased 100 shares of XOM for $76.63 per share at the beginning of 2007. He received dividends per share of $1.37 (2007),
never [62]

Answer:

The IRR is 4.08%

Explanation:

In calculating the internal rate of return in excel,the cash outflow of $76.63 is shown in year 0 with a negative sign to indicate that it is the initial investment on the share, followed by dividends in received in later years shown as positive figures ,however in the fifth the dividend received and the cash received from disposing of the share were added together to show total cash inflow in the last year.

The computation of IRR is shown below

IRR for the share purchase  

 

Years Cash flow

0 -76.63

1 1.37

2 1.55

3 1.66

4 1.74

5 86.61  

IRR 4.08%

Find attached for detailed computation.

Download xlsx
4 0
3 years ago
The common stock of dayton repair sells for $43.19 a share. the stock is expected to pay $2.28 per share next year when the annu
Nuetrik [128]

Hello there!

Answer:

7.43%

Explanation:

To find the market rate of return on the Dayton repair stock, we would need  to use it's selling price, expected pay, and the 2.15%.

Lets solve:

First, we divide 2.28 by 43.19.

2.28 ÷ 43.19 = 0.0527899976846492

Now we add the 2.15%. In order for us to add it, we would need to move the decimal places two times to the left. We would add 0.0215 to 0.0527899976846492.

0.0527899976846492 + 0.0215 = 0.0742899976846492

Now we would need to move the decimal places over, and round to the nearest hundredths.

7.428

The 8 would round and change the 2 into a 3

7.43.

The market rate of return for the stock would be 7.43%

5 0
3 years ago
Abe owns a dog; the dog's barking annoys Abe's neighbor, Jenny. Suppose that the benefit of owning the dog is worth $200 to Abe
umka2103 [35]

Answer:

Jenny pays Abe $300 to give the dog to his parents who live on an isolated farm

Explanation:

The answer is already stated within the question, but I'll provide  the explanation.

In order to reach a solution, Jenny would have to offer Abe an amount to get rid of the dog that is more than Abe's benefit of owning the dog, which is $200.

On the other hand, since Jenny bears a cost of $400 from the bark, she would only be willing to spend as much as $400 to resolve the situation. Therefore, the acceptable range for the amount of the agreement for both parts is:

$200 < X < $400.

Since $300 is within that range. Jenny paying Abe $300 to give the dog to his parents is a possible solution.

6 0
3 years ago
Read 2 more answers
Which career is likely to earn the highest salary?
kogti [31]

Answer:

b.) Dentist

Explanation:

Hope it helps!

6 0
3 years ago
Randall purchased an insurance policy and stated he never had heart trouble, but he had a myocardial infarction several years pr
mart [117]

Answer:

The action the insurance company should take is that they should cancel the insurance policy between them and Randall and return all the premiums paid to date

Explanation:

Here in this question, we are interested in knowing what action the Insurance company will take in the eventuality that Randall experienced a fatal heart attack.

The action the Insurance company will take is that the insurance policy will be canceled and all premiums which have hitherto being paid by Randall will be returned. What we are saying is that the Insurance company will not be liable or held responsible to make payment for the medical costs of the fatal heart attack suffered.

Hence, we can conclude that the Insurance company in this case is not bind by law to pay for the cost of the medical bill and is only to return the premiums already paid by Randall.

6 0
4 years ago
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