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creativ13 [48]
2 years ago
5

When treasury stock is purchased for an amount greater than its par, what is the effect on total shareholders' equity?

Business
1 answer:
fomenos2 years ago
8 0

When treasury stock is purchased for an amount greater than its par then the total shareholders' equity decreases.

Given that the treasury stock is purchased for an amount greater than its par.

We are required to find the effect of the purchase of treasury stock for an amount greater than its par on the total shareholders' equity.

Treasury stock is basically known as treasury shares or reacquired stock, and refers to previously outstanding stock that is bought back from stockholders by the issuing company. The result of issuing treasury stock is that the total number of outstanding shares on the open market decreases. Shares of a company are a part of total shareholders' equity and because shares are issued for security, it will decrease the total shareholders;equity.

Hence when treasury stock is purchased for an amount greater than its par then the total shareholders' equity decreases.

Learn more about treasury stock at brainly.com/question/17439058

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Your pharmaceutical firm is seeking to open up new international markets by partnering with various local distributors. The diff
Afina-wow [57]

Answer:

Case 1 = $420 million

Case 2 = $280 million

Case 3 = $350 million

Explanation:

As per the data given in the question,

Annual value by one distributor = $420 million per year

Annual value by two distributor = $560 million per year

Case 1)

The marginal value of first distributor is more than second  

So when negotiating the value, it is = $560 million - $420 million = $140 million

and this value would be distribute between both. so each will get = $140 million / 2 = $70 million

and you would expect to capture $420 million of this deal

Case 2)

As distributors are run by government, so negotiation will be done with both the distributor at same time and margin would be $560 million and you would be grabbed = $560 million ÷ 2 = $280 million

Case 3)

In this case marginal amount of contact = $560 million - $140 million = $420 million

and half of it = $420 million ÷ 2 = $ 210 million, which is the amount to be offered  

and you would expect to grab the remaining amount = $560 million - $210 million  

= $350 million

7 0
3 years ago
econ George and John, stranded on an island, use clamshells for money. Last year George caught 300 fish and 5 wild boars. John g
kupik [55]

Answer:

The GDP of the island is  1,350 clam shells.

Explanation:

George and John produce fish, boars, and bananas in their two-person economy. Fish sell for 1 clamshell each, boars sell for 10 clamshells each, and bananas go for 5 clamshells per bunch.

In this economy, the GDP will be the value of final goods and services produced. Intermediate goods will not be included.  

Digging bait for fishing and the purchase of banana trees will not be included in the GDP.  

The GDP of the island in terms of clamshells will be  

= (300\times 1) + (5\times10)+(200\times5)

= 300 + 50 + 1,000

= 1,350 clam shells

8 0
3 years ago
Matty Kaminsky owns a new Volvo. His June monthly interest is $400. The rate is 8 ½%. Matty's principal balance at the beginning
Nesterboy [21]

Answer:

$56,470.59

Explanation:

We need to calculate the principal amount  at the beginning of June

Data:

Interest (I) = $400

Rate(r) = 8.5%

Time(t) = 360 days

Solution:

We can calculate the principal amount by rearranging the Interest calculation formula

Formula: I = Prt

Note; Where P in the formula is the principal amount

Now rearrange the formula in order to find principal

P = I/rt

P = $400/(0.085)x(30/360)

P = $400/(0.085)x(0.08333333333333)

P = $400/(0.00708333333333

P = $56,470.59

Note: we only need to find the principal balance of June so we will consider only 30 days of June out of 360 days.

5 0
4 years ago
A mutual fund that only invests in companies outside the united states is called a(n) ____________ fund.
Nataliya [291]

A mutual fund that only invests in companies outside the united states is called a(n) <u>sector </u>fund.

A mutual fund is a professionally controlled investment fund that swimming pools money from many traders to purchase securities. The time period is commonly used inside the united states of America, Canada, and India, at the same time as comparable structures throughout the globe including the SICAV in Europe and open-ended funding corporation within the united kingdom.

A mutual fund is a pool of money controlled by a professional Fund manager. It's far a consider that collects money from some the buyers who share a common investment objective and invests the same in equities, bonds, cash marketplace instruments, and/or different securities.

Mutual funds are good funding for traders looking to diversify their portfolios. in preference to going all-in on one company or enterprise, a mutual fund invests in special securities to try and reduce your portfolio's risk.

Learn more about Mutual funds here: brainly.com/question/14967316

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3 0
2 years ago
Thu nhập tăng, giá các hàng hóa không thay đổi, khi đó
yawa3891 [41]

Answer:

ᝬᝪᝮᝠᝢᝠᝠᝧᝪᝮᝪᝡᝰᝡᝰᝡᝰᝡᝰᝳᝬᝪᝬᝪᝪ

8 0
3 years ago
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