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2 years ago

How do public disclosure requirements protect consumers?

1 answer:

6 0

Public disclosure requirements protect consumers by keeping public companies honest in how they run their business and represent themselves to the public.

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Kleister Company issues bonds for $100 million and repays a long-term notes payable of $10 million. The company also repurchases

solong [7]

Answer:

TRUE

Explanation:

Kleister Company:

1. Issues bonds for $100 million - INFLOW

2. Repays a long-term notes payable of $10 million. - OUTFLOW

3. The company also repurchases its own shares for $12 million - OUTFLOW

4. Issues stock dividends with a market value of $5 million. - NOT A CASH FLOW

It is therefore true that Net cash flow from financing activities will be: $78 million [100 million - 10 million - 12 million] since the dividends are stock dividends not cash dividends

4 0

3 years ago

Suppose an unlevered firm issues $1000 in debt at a cost of debt of 10%. If the corporate tax rate is 20%, what is the change in

Strike441 [17]

Suppose an unlevered firm issues $1000 in debt at a cost of debt of 10%. If the corporate tax rate is 20%, $200 t is the change in the firm's value.

Due to the issue of the corporate tax rate is entitled to Interest Tax Shield assuming Debt issued by the firm is perpetual and ignoring financial distress costs

Change in Value of firm

=Net Effect of Debt Financing

=Present Value of Interest Tax Shield (financial distress costs ignored)

= DebtValue * Cost of Debt * Tax Rate Interest Rate

= $1,000 * 10% * 20% 10%

=$200,

corporate tax rate, also known as corporate income tax or corporate tax, is a direct tax levied on the income or capital of a corporation or similar corporation. Many countries impose such taxes at the national level, and similar taxes may be levied at the state or local level.

Learn more about tax rate here: brainly.com/question/25791968

#SPJ4

3 0

1 year ago

A Golf company detemined that the budgeted cost of producing a product is $30 per unit. On June 1, there were 60,000 units on ha

iogann1982 [59]

Answer:

Budgeted cost of goods sold = $7,650,000

Explanation:

Computation table for budgeted cost of goods sold

Particular Amount

Total Sales 225,000

Add: Desired stock in hand 90,000

Less: Beginning stock 60,000

Budgeted production 255,000

Budgeted cost of goods sold = 255,000 x $30

Budgeted cost of goods sold = $7,650,000

6 0

2 years ago

Many people who want to start investing for their future want to start today, which implies an annuity stream that is paid at th

navik [9.2K]

Answer:

b. annuities due

Explanation:

Annuities due -

It refers to the amount which need to be paid at the regular interval of time , just before the beginning of the new phase , is referred to as annuities due .

The most common example of annuities due is rent , which need to be paid after every month in the starting .

Hence , from the given information of the question ,

The correct option is annuities due.

4 0

3 years ago

On January 1, 2018, Titania Inc. granted stock options to officers and key employees for the purchase of 20,000 shares of the co

qwelly [4]

Answer:

Explanation:

Date General Journal Debit Credit

Jan 1 2018 No Entry when granting

Dec 31 2018 Compensation Expense ($350,000/2 Years) $175,000

Paid in Capital Stock Options $175,000

(for Year 2018 - compensation expense)

Apr 1 2019 Paid in Capital Stock Options $ 17,500

Compensation Expense $ 17,500

(To record termination of stock options)

$350,000*2,000/20,000*1/2

Dec 31 2019 Compensation Expense ($350,000/2 Years) $157,500

Paid in Capital Stock Options $157,500

(for Year 2019 - compensation expense)

$350,000*18,000/20,000*1/2

Mar 31 2020 Cash (12,000*$25) $300,000

Paid in Capital Stock Options ($350,000*12,000/20,000) $210,000

Common Stock (12,000*$10) $120,000

Paid in capital, in excess of par-Common $390,000

(To record exercise of stock options)

3 0

2 years ago