Answer:
$12.5
Explanation:
For a 2 for 1 stock split, an additional share will be given to each shareholder. Thus on the 60 million shares existing, an additional 60 million shares valued at (60 million * $1 = ) $60 million will be issued.
The journal entry will be as shown below.
Debit: reserves account $60 million
Credit: common shares account $60 million.
Because there was no new cash received, the market value of the company will remain the same, and the price will adjust to keep the market value the same.
Before stock split: 60 million share at $25 per share = $1.5 billion.
After stock split, number of shares increases to 120 million, market value remains $1.5 billion. Therefore,
stock price = $1.5 billion/120 million = $12.5.
Answer:
-2.01%
Explanation:
Modified duration = 8.05 years
Market yield = 0.25%
Initial yield to maturity = 10%
As per the price change and duration formula,
Change in price/Price of bond = - Modified Duration * Change in yield
Change in price/Price of bond = - 8.05 * 0.0025
Change in price/Price of bond = -0.020125
Change in price/Price of bond = -2.01%
Thus, if the market yield increases by 25 basis points, there will be a - 2.01% change in bond's price due to duration
Brainliest please? :)
PH Toy Company should sell its product unassembled.
The cost of the unassembled product is $30 and they would mark it up to $65 retail price resulting in a gross profit of $35
The cost to assemble the product is $21 per unit bringing the assembled product's total cost to $51. They would then mark it up to $85 retail price resulting in a gross profit of $34
Due to the unassembled product's retail price being cheaper, it would pertain to a different demographic that isn't as likely to spend more money on products.
Think of competitors that sell the same thing, for example Pacific Coffee or Pretz.
Answer:
cognitive dissonance
Explanation:
Cognitive dissonance occurs when an individual pursues more than one contradictory value, idea, or belief. This leads to stress as the person is form between multiple choices.
For example a HR manager is responsible for staff welfare and also owes allegiance to the management. If management is carrying out a policy that has adverse effect on staff the HRanager will be torn between conflicting beliefs.
In this case although Maria purchased the coat at higher price she experiences tension because she would have purchased it at lower price somewhere else.