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1 year ago

The entry to record the issuance of common stock at a price above par includes a credit to?

Business

1 answer:

Anton [14]1 year ago

3 0

The entry to record the issuance of common stock at a price above par includes credit to cash.

Common stock is a protection that represents ownership in a organization. In a liquidation, commonplace stockholders get hold of whatever property remain after creditors, bondholders, and favored stockholders are paid.

Common stock is a form of company fairness ownership, a kind of safety. The phrases balloting proportion and normal proportion also are used often out of doors of the us. they're called fairness stocks or regular shares inside the united kingdom and different Commonwealth nation-states.

For instance, if a employer pronounces a dividend of $10 million and there are 20 million shareholders, investors will acquire $0.50 for each commonplace share they personal.

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stock currently sells for $35.25 per share. The dividend is projected to increase at a constant rate of 4.75% per year. The requ

USPshnik [31]

Answer:

The stock price 5 years from now will be 44.46

Explanation:

The stock price will increase like compound interest at the same rate as the dividends.

$Stock(1+ g)^{time} = Amount$

Stock 35.25

time 5

dividend grow rate 0.0475

$35.25 (1+ 0.0475)^{5} = Amount$

Amount 44.45588696

The stock price 5 years from now will be 44.46

<u>Reasoning:</u>

In five years, if we calcualte the gordon dividend growth model:

$\frac{divends_{year5}}{return-growth} = Intrinsic \: Value$

and year 5 dividends would be:

$Dividend\: (1+ g)^{5} = Divends_{year5}$

$\frac{Dividend\: (1+ g)^{5}}{return-growth} = Intrinsic \: Value$

we can arrange the formula like this:

$\frac{Dividend}{return-growth} \times (1+ g)^{5}= Intrinsic \: Value$

The first part is the current stock price so our formula is confirmed.

$$Market Value Today \times (1+ g)^{5}= Intrinsic \: Value$

6 0

3 years ago

Which region is most likely to export bananas to the United States?

wariber [46]

<h2>ANSWER:</h2>

Guatemala - 3,348.75 Million Pounds

<h2>EXPLANATION:</h2>

The US itself just creates 0.008 million metric huge amounts of bananas every year, and vigorously depends on bananas from different nations to help meet its requests for the natural product. These nations whereupon the United States depends are sketched out underneath.

10. Dominican Republic - 9.22 Million Pounds

9. Panama - 50.65 Million Pounds

8. Peru - 61.65 Million Pounds

7. Nicaragua - 87.88 Million Pounds

6. Mexico - 489.25 Million Pounds

5. Colombia - 912.04 Million Pounds

4. Honduras - 1,188.93 Million Pounds

3. Costa Rica - 1,824.69 Million Pounds

2. Ecuador - 1,730.32 Million Pounds I

1. Guatemala - 3,348.75 Million Pounds

4 0

2 years ago

Read 2 more answers

Inventory is important in the supply chain for many different reasons. Why would you invest the company's money for inventory a

Makovka662 [10]

Answer:

All the answers are right

Explanation:

A.To provide a hedge against inflation. : in an inflationary economy, a company can invest in inventory in order to be prepared for the higher prices of raw materials to come. So they can maintain the company´s profit.

B. To tightly synchronize production and distribution processes: inventory of final products can help to minimize the effects of unexpected production problems.

C. To ensure that item cost is maximized: A company can buy a bulk of raw material since the cost of a large number of units is lower. So the final product's cost will be maximized.

D. to tightly synchronize a firm's production with its customers' demand: for example in a seasonal demand, There are certain months when the demand exceeds the production capacity. In theis case, in the lower season months, the company will be increasing the inventory in order to meet the demand when the high season comes.

6 0

3 years ago

Should a firm change its positioning depending on the market? What are the potential advantages and disadvantages of doing this?

nasty-shy [4]

Answer:

In simple words, In comparison to competitors, market positioning refers to the capacity to impact customer perceptions of a brand or commodity. The purpose of market placement is to establish a brand's or product's image or character so that people view it with a certain aim in mind.

Effective sales promotion has the best characteristic of being able to provide a competitive edge. As a result, if a corporation can position its services as particularly important, competitors will believe it will be difficult to make a strong case for acquiring alternatives.

4 0

2 years ago

Sasha works for a large corporation, and sometimes, she finds it difficult to see how she fits into the corporate picture. Howev

FinnZ [79.3K]

Answer:

C. It can boost employee productivity.

Explanation:

Sasha's company decision to establish an employee stock ownership plan has the potential benefit of boosting employee productivity because staff members and people in general are motivated by rewards.

Employee stock ownership plan is a staff reward scheme where a company's employees are awarded shares of the company they work for, hence they become both staff and shareholders of that company.

Sometimes these plans are futuristic, they are awarded at a certain date in future if the company achieves certain goals. Hence the productivity of employees are boosted in the bid to boost the company's performance and achieve their share rewards

8 0

2 years ago