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MakcuM [25]
3 years ago
8

Sunland Company paid dividends of $4800. As a result of this event, the Dividends account was increased by $4800. Dividends acco

unt was decreased by $4800. Cash account was increased and the Dividends account was decreased by $4800. Cash account was increased by $4800.
Business
2 answers:
Kaylis [27]3 years ago
7 0

Answer:

Dividends account was decreased by $4800.

Explanation:

When dividends are declared, a temporary account called dividends is created. It is a contra equity account that decreases retained earnings account and has a debit balance (although it is included under stockholders' equity). Once the dividends are paid, this account is cancelled.  

Thepotemich [5.8K]3 years ago
5 0

Answer:

Dividends account was decreased by $4800.

Explanation:

When Sunland company pays dividends, it will raise as set of entries.

First debit Retained Earnings accountants credit Dividends Payable

Secondly when the cash is to be paid out debit Dividends Payable and credit Cash.

So in the second set of journal entries the Dividends account decreases as dividends are paid out.

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A stock has a required return of 11%; the risk-free rate is 7%; and the market risk premium is 4%.
kotegsom [21]

Answer:

The Beta is 1

The required return increases to 13%

Explanation:

The formula for required return is given below:

Required Return = Risk-Free Rate of Return + β(Market Return – Risk-Free Rate of Return)

required return is 11%

risk-free rate of return=7%

Beta is unknown

market return-risk free rate of return is market risk premium is 4%

11%=7%+beta(4%)

11%-7%=beta*4%

4%=beta*4%

beta=4%/4%

beta=1

If the market risk premium increased to 6%,required return is calculated thus:

required return=7%+1(6%)

required return =13%

This implies that the riskier the stock, the higher the market risk premium, the higher the required return to investors.

6 0
3 years ago
Perez Corporation’s computer services department assists two operating departments in using the company’s information system eff
ollegr [7]

Answer:

Production department $440,000

Sales department $143,000

Explanation:

The allocation of the total cost to the operating departments is proportional to the number of employees. In other words, as the number of employees increases, so does the allocated cost and vice versa.

Hence,

Cost allocated to the production department

= 40/(40 + 13) × $583,000

= 40/53 × $583,000

= $440,000

Cost allocated to the sales department

= 13/(40 + 13) × $583,000

= 13/53 × $583,000

= $143,000

3 0
3 years ago
Much of the supply of ________________ is from china and india where chemical manufacturers have less government oversight.
Eva8 [605]
The answer in the space provided is 'coming from'. It is because the countries like China and India has government which has less over sight which enables them to transport goods from chemical manufacturers because of their government that are not that strict in terms of transporting goods to other countries compared to others countries that have more over sight and are more strict.
7 0
3 years ago
Suppose you know a company's stock currently sells for $90 per share and the required return on the stock is 14 percent. You als
mina [271]

Answer:

$5.89

Explanation:

The computation of current dividend per share is shown below:-

(Dividend in One Year) ÷ Current Price

= 14% ÷ 2

= 7%

Dividend = Dividend yield × Stock currently sold per share

= 0.07 × $90

= 6.3

Current dividend per share = Dividend ÷ (1 + Dividend yield)

= 6.3 ÷ (1 + 0.07)

=  6.3 ÷ 1.07

= $5.89

Therefore for computing the current dividend per share we simply applied the above formula.

6 0
3 years ago
Which document determines the number of shares in a company? a stock prospectus an annual bill of rights a corporate charter an
Nezavi [6.7K]

Answer: Corporate charter

Explanation:

The corporate charter is also referred to as the articles of incorporation. It is a document that contains the major components that make up a company, like the objectives of the company, the structure of the company, the number of shares the company has for sale and the planned operations of the company.

When a corporate charter is approved by the state, then the company will become a legal corporation. The corporate charter also contains the names of the people that are involved in its formation.

5 0
3 years ago
Read 2 more answers
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