Answer:
Transaction Assets Liabilities Stockholders' Equity
Issue common stock Increase NE Increase
Issue preferred stock Increase NE Increase Purchase treasury stock Decrease NE Decrease
Sale of treasury stock Increase NE Increase Declare cash dividend NE Increase NE
Pay cash dividend Decrease Decrease NE
100% stock dividend NE NE NE
2-for-1 stock split NE NE NE
When shares are sold or issued, they increase the stockholders equity as people buy these shares. They also increase assets because cash comes into the company when the shares are sold. This is why the Issuing of preference and common stock as well as the sale of Treasury shares had the same effects.
When cash dividends are declared, they become a liability that is owed to equity holders.
When these dividends are then paid, they remove the liability but reduce assets as cash is used to pay the dividends.
100% stock dividend reduces retained earnings but increases equity so stockholders equity does not change.
I think the correct answer from the choices listed above is the third option. It is the withholdings that result in a lower net income. <span>A </span>withholding<span> tax, also called a retention tax, is a government requirement for the payer of an item of income to </span>withhold<span> or deduct tax from the payment, and pay that tax to the government. </span>
Gaining a profit from sold goods is helpful because the use of scarce resources is optimized. It also provide jobs. The bad side of being in a profit motive business is that some may be tempted to deal with customers . I think that a profit motive business is a good thing.
Answer: Please refer to Explanation
Explanation:
The Grapefruit market will experience an acute shortage of grapefruits because the bad freeze destroyed most of the crop that was going to be supplied.
This shortage in supply will force the price up and therefore lead to a drop in Demand as a lot of people will decide that they can't spend the new amount.
This scenario would lead to an increase in the Equilibrium price because the supply curve will be forced to the left and the new intersect with the Supply curve will be higher. The Equilibrium Quantity will also reduce because of the shortage that is being experienced as a result of a large portion of the grapefruits being destroyed.
In the graph I attached, S2 refers to the supply curve AFTER the bad freezes. Notice how the price went up to P2 and the Quantity dropped to Q2.
If you need any clarification do comment. Cheers.
Answer:
Interest payment = Interest rate per period × par value
5.5 percent coupon corporate bond (paid semi-annually)
Interest payment = 1/2 × 0.055 × 1000 = $27.5
6.45 percent coupon Treasury note (Treasury makes semi-annual coupons)
Interest payment = 1/2 × 0.0645 × 1000 = $32.25
Zero coupon bond:
Interest = 0 × 1000 = $0
