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Andre45 [30]
3 years ago
6

The Meat Market has 16,000 shares of stock outstanding at a price per share of $7. What will be the price per share if the firm

declares a 3-for-7 reverse stock split?
Business
1 answer:
Alekssandra [29.7K]3 years ago
4 0

Answer:

The price will be $16.33.

Explanation:

In finance, a reverse stock split is a method where shares are merged to form a smaller number of proportionally more valuable shares. A reverse stock split is also called a stock merge.

If the reverse stock is 3-for-7, that means for every 7 shares an investor have, he will receive 3 shares with a proportional value.

So 3 shares will have the same value than 7 shares of $7 (this is $49). Finally, each share willhave a price of 49/3 = $16.33

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An investor knows the total assets and total liabilities of a company, but they are not sure how much of the assets and liabilit
galina1969 [7]

Answer:

The investor must find Current Ration and Quick Ratio.

Explanation:

The reason is that the current ratio tells that how much of the current assets are financed from the current liabilities. This gives a better understanding of the financing of the working capital through current liabilities. The quick ratio does the same but the effect of the inventory is eliminated.

7 0
3 years ago
Full-service advertising agency refers to
sdas [7]

Answer:

An advertising agency that provides the most complete range of services including market research, media selection, copy development, artwork and production.

Explanation:

Advertising can be described as the various strategies used to create an awareness of a product to the public. The main objective of advertising is to persuade potential customers to purchase the product.

Full service advertising offers a complete range of services which include carrying out an extensive market research on the product, a good media management, excellent design and packaging of the product.

Hiring the services of full advertising agencies creates room for a team of specialists to work together inorder to boost the sales of the product. It also provides enough time for the management of an organisation to figure out new ways to strategize their business.

8 0
3 years ago
According to the FASB’s conceptual framework, the quality of information that enables users to identify similarities in and diff
ehidna [41]

Answer:

A) Comparability.

Explanation:

According to FASB, the objective of financial reporting is to provide information that is useful to existing and potential investors or creditors. One of the main uses given to financial reports is comparing one business to another. In order for the reports to be comparable, they must follow strict standards and be properly prepared.

If the reports aren't comparable, they use is extremely limited, since how else can you decide if investing in company A is a better idea than investing in company B. Comparability applies even to the same company, since you must be able to compare the financial results of different years in order to evaluate the performance of the company.  

6 0
4 years ago
According to the quantity theory of money, the quantity of money is related negatively to the nominal interest rate:
galben [10]

Answer:

d. positively to the nominal gross domestic product

Explanation:

The quantity theory of money :

M = (P x Y ) / V

Where m = quantity of money

P × Y = nominal GDP

V = velocity

Velocity is assumed to be constant in the short run. It is also believed that Y is constant in the short run. Therefore, movement in price level is determined by the quantity of money.

I hope my answer helps you.

3 0
3 years ago
45. In order to reduce production costs, Seuss Inc., an automobile manufacturer, decided to buy out a glass plant and begin manu
zzz [600]

Answer:

B.

Explanation:

Vertical integration is a merger of companies at different stages of production and/or distribution in the same industry. A strategy that many companies use to gain control over their industry´s value chain. This strategy is one of the major considerations when developing corporate level strategy.

The important question in corporate strategy is, whether the company should participate in one activity (one industry) or many activities (many industries) along the industry value chain.

For example, the company has to decide if it only manufactures its products or would engage in retailing and after sales services as well.

6 0
3 years ago
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