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fenix001 [56]
2 years ago
12

What effect will the sale of treasury stock have on stockholders' equity and earnings per share, respectively?

Business
1 answer:
scoray [572]2 years ago
4 0

Increase and decrease effect will the sale of treasury stock has on stockholders' equity and earnings per share, respectively.

Treasury stock is a contra fairness account recorded in the shareholders' equity section of the stability sheet. due to the fact treasury inventory represents the quantity of shares repurchased from the open market, it reduces shareholders' equity by using the quantity paid for the inventory.

Selling treasury inventory always affects in an growth in shareholders' equity. The preceding instance shows you what takes place while an organization sells treasury inventory at a top rate to price. The accounting is different if an organization sells treasury inventory at a discount to its fee.

The treasury stock approach states that the fundamental proportion depend used in calculating a agency's income in step with proportion (EPS) must be improved because of first-rate in-the-cash options and warrants, which entitle their holders to buy common stocks at an workout fee that's underneath the modern market price.

Learn more about treasury stock here: brainly.com/question/8054097

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Which of the following is NOT example of Capital used to produce goods?
riadik2000 [5.3K]

Answer:

Some examples of capital used to produce goods are machinery, human workers, equipment, basically anything that is used by a factory in the production process. You didnt list any options so I can't tell you which one isn't, but I hope this helps!

Explanation:

7 0
3 years ago
"Liberty may be endangered by the abuse of liberty, but also by the abuse of power."—James Madison Which of the following statem
Alex73 [517]

Answer:

James Madison is known as the Father of the Constitution, and he worked very hard to limit the powers of the government branches, so that no government branch would be more powerful than the other two. He was a great supporter of the Bill of Rights, which also limited the power of the government towards the citizens of the nation.  

This specific quote refers to the checks and balances system that prevents any of the three branches of the US government; executive, legislative and judicial, from becoming too powerful.

5 0
3 years ago
10. Uneven cash flows A series of cash flows may not always necessarily be an annuity. Cash flows can also be uneven and variabl
GaryK [48]

Answer:

$1,155,478

Explanation:

Present value is the sum of discounted cash flows

Present value can be found using a financial calculator

Cash flow in year 1 = $100,000

Cash flow in year 2 =  $20,000

Cash flow in year 3 = $480,000

Cash flow in year 4 = $450,000

Cash flow in year 5 = $550,000

I = 9%

Present value = $1,155,478

To find the PV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  

5 0
3 years ago
Today, your paint line must produce 4950 gallons of beige paint. Your four step manufacturing process has the following scrap ra
Eddi Din [679]

Answer:

For paint line to must produce the 4950 gallons of beige paint, it needs total of 5174.1 Kg. It accounts for the factors which are mentioned in the question . Explanation for this is attached in the image.

Explanation:

Explanation is in the attached image.

7 0
3 years ago
An investor bought a one-acre lot on the outskirts of a city for $12,700 cash. Each year she paid $175 of property taxes. At the
german

Answer:

79.5%.

Explanation:

Rate of return = \frac{final value - initial value}{initial value} x 100

The cost of the acre = $12700.

Total property taxes paid for 7 years = $175 x 7

                                                             = $1225

Net value of cost = $12700 + $1225

                             = $13925

Net value of the land when sold = $25000

∴ Rate of return = \frac{25000 - 13925}{13925} x 100

                          = 0.7953 x 100

                          = 79.53%

The rate of return of the acre of land is 79.5%.

7 0
2 years ago
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