Answer:
24 million shares ; $16 million
Explanation:
The computation of the weightage number of treasury shares are shown below:
Number of shares Price Total
2 $22 $44 million
1 $28 $28 million
Total 3 $72 million
So, the weighted average number of shares would be
= $72 ÷ 3 = 24 million shares
Now the journal entry would be
Cash A/c Dr $64 million (2 million treasury shares × $32)
To Paid in capital - share repurchase A/c $16 million
To Treasury stock $48 million (24 million treasury shares × $2)
(Being the treasury shares are sold)
Answer:
The correct answer to the following question is the last option - the shares of ownership in a company that may pay dividends .
Explanation:
Stocks which are also popularly know as shares or equity, can be defined as one of the types of securities which signifies the proportion of ownership in the issuing company . If a person ( who is know as the shareholder or stockholder ) holds a company's shares , then that person is entitled to the proportion of company's assets and earnings ( the proportion would depend upon the number of shares he or she is holding ) . If a company earns profit, then that shareholder would receive some portion of that earning in form of dividends .
Answer:
3.44 percent
Explanation:
Required return = Dividend yield + growth rate
Dividend yield = Required return - growth rate
= 11.65% - 8.21%
= 3.44%
Therefore, The dividend yield is 3.44%
Answer:
The simple rate of return of 4.54%
Explanation:
The simple rate of return of 8.75%
($97,000 - $56,000 - $27,500) ÷$297,000
=$13,500÷$297,000
=0.0454×100
=4.54%
The new machine $330,000 ÷ 12 years useful life
=$27,500
The new machine $330,000
Les old machine scrap $33,000
=$297,000
Therefore the simple rate of return is 4.54%
