Answer:
a. $20.00
Explanation:
Given that
Common Stock = $150,000
Additional Paid-in Capital = $850,000
Par Value per share = $3
So,
Number of shares issued = Common Stock ÷ Par Value per share
= $150,000 ÷ $3
= 50,000
Now
Total Common Stock Equity = Common Stock + Additional Paid-in Capital
= $150,000 + $850,000
= $1,000,000
So,
Average Issue Price per share = Total Common Stock Equity ÷ Number of shares issued
= $1,000,000 ÷ 50,000
= $20.00
Answer
The answer and procedures of the exercise are attached in the following image.
Explanation
Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.
Answer:
C: a franchisee
Explanation:
One of the responsibilities of a franchisee is to bear risk of the franchisor.
A franchise is a business relationship where a firm goes into agreement with another firm to represent the former in another geographical region or service. The franchisor is the parent company while the franchisee is the independent agent.
Answer:
C. $200 net loss
Explanation:
The net loss or gain is calculated on hedging to determine whether the hedge has been beneficial for the company or not. Hedging is a process to transfer exchange rate movement risk. This is usually suitable for the companies who have receipts or payments in foreign currencies.
The hedging gain loss can be calculated as:
Forward rate at the time of contract - spot rate today
$1.21 - 1.232 = 0.0232
