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3 years ago

A stock-split journal entry would include?

2 answers:

6 0

A stock-split journal entry would include? A memorandum notation. If a stock split happens, it is because an company's board of directors decided to increase the amount of shares outstanding. They do this by issue more shares of the company to current stock holders but at a lower price due to the increase in quantity.

djyliett [7]3 years ago

6 0

The answer to your questions is "Memorandum Notation only."

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Hammerstein Corporation offers a variety of share-based compensation plans to employees. Under its restricted stock award plan,

LekaFEV [45]

Answer and Explanation:

As per the data given in the question,

Fair value per share = $20.4

Number of Share = 2 million

Fair value of award = Fair value per share ×Number of Share

= $20.4 × 2 million

= $40.8 million

2) No Entry

Compensation expense($40.8 million÷4 years) $10.2 million

To Paid in capital - restricted stock($20.4-$10.2) $10.2 million

(Being the compensation expense is recorded)

Fair value per share = $20.4

Share granted = 2 million

(100%-10%) forfeiture rate = 90%

fair value of award = $20.4×2×90%

= $36.72 million

5 0

3 years ago

What are the three activities according to which a statement of cash flows is organized?

HACTEHA [7]

Operations, Investing and Financing are the three activities according to which a statement of cash flows is organized.

Cash flow refers to the net balance of cash moving into and out of a business at a specific point in time. Cash is consistently moving into and out of a business.

For example- When a retailer purchases inventory, money flows out of the business toward their suppliers.

To learn more about

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8 0

2 years ago

A _____ is the highest postsecondary degree available.

Nadusha1986 [10]

I pretty sure it’s B

5 0

2 years ago

Read 2 more answers

The stock of ABD, Inc. has a beta a 1.5 and an expected return of 11.6 percent. The expected return on the market is 11 percent.

GaryK [48]

Answer:

im sorry

Explanation:

8 0

3 years ago

As winner of a breakfast cereal competition, you can choose one of the following prizes: a. $180,000 at the end of five years. b

Stolb23 [73]

Answer:

i. Discounted cashflow equations.

a. $180,000 at the end of five years.

This is a lump sum present value/ discounted cashflow which can be calculated as;

Formula = 180,000 / ( 1 + r)^n

= 180,000/ ( 1 + 12%)^5

= $102,136.83

b. $11,400 a year forever

This is a perpetuity. The present value/ discounted cashflow of a perpetuity is calculated as;

Formula = Amount/rate

= 11,400/12%

= $95,000

c. $19,000 for each of 10 years.

This is an annuity. The formula for calculating the Present value/ discounted cashflow of an annuity is;

$Formula = Annuity * [\frac{( 1 - (1 + i)^{-n} )}{i} ]$ where i is interest rate and n is number of periods

$= 19,000 * [\frac{( 1 - (1 + 0.12)^{-10} )}{0.12} ]$

= $107,354.24

d. $6,500 next year and increasing thereafter by 5% a year forever.

This is a growing perpetuity. The present value/ discounted cashflow formula is;

= Amount / ( discount rate - growth rate)

= 6,500 / ( 12% - 5%)

= $92,857.14

ii. Choose $19,000 for each of 10 years as it has the highest present value.

7 0

3 years ago