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3 years ago

What is a stock split and when does it usually occurs?

Business

1 answer:

djverab [1.8K]3 years ago

3 0

Answer:

Stock split can be understood as an addition of more outstanding shares to the existing shareholders. It is generally done when a company experiences an increase in the price per share.

Explanation:

A stock split, in most common languages, can be understood as a splitting of the outstanding shares because of the price rise in these shares. This splitting of shares is done by the board of directors of the company to increase the number of shares. The most important reason is to make the shares affordable to the investors and not influencing the capital of the company. The stock split usually happens when any company experiences an increase in the per-share price and when it is found that the price has increased beyond the estimated limit of the company or is higher compared to similar other companies in the same market.

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On its December 31, 2017, balance sheet, Estes Co. reported its investment in trading securities, which had cost $500,000, at fa

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Answer:

Estes must adjust the Securities Fair Value Adjustment account (which is a contra asset account) by debiting $17,500 (= $475,000 - $492,500). Since the investment in trading securities is considered an asset but it had lost value, an unrealized loss of $25,000 was reported in its 2017 balance. Since the investment's value has increased, the unrealized loss has to decrease. This is done by crediting an unrealized gain of $17,500 in the Unrealized Gains account (equity account).

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3 years ago

HAW, Inc. plans to pay a $1.10 dividend per share in 3 months and a $1.15 dividend in 6 months. HAW's share price today is $45.6

Anestetic [448]

Answer:

$45.28

Explanation:

The computation of price of a forward contract is shown below:-

Cash flows Future Value Amount Amount

A $45.60 $45.6 × exponential(0.021 × 2) $47.55599

B $1.10 $1.10 × exponential(0.021 × 1) $1.123344

C $1.15 $1.15 × exponential(0.021 × 0) $1.15

So, The value of forwards contract = Amount of A - Amount of B - Amount of C

= $47.55 - $1.12334 - $1.15

= $45.28

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4 years ago

A document that totals what the customer owes is called _____.

AnnZ [28]

Your answer is
<span>B. an invoice</span>

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4 years ago

Marigold Corp.budgeted manufacturing costs for 70000 tons of steel are: Fixed manufacturing costs $50000 per month Variable manu

Nataly [62]

Answer: $290,000

Explanation:

Flexible budget for 20,000 tons:

Fixed manufacturing costs (Period costs constant irrespective of tons produced) $50,000

Variable manufacturing costs

($12 × 20,000) $240,000

Total Manufacturing costs for 20,000 tons will be:

$50,000 + $240000 = $290,000

Note: Variable costs varies based on the number of units produced whereas Fixed costs are the period costs that are constant irrespective of units produced.

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3 years ago

Read 2 more answers

You are evaluating the balance sheet for Goodman's Bees Corporation. From the balance sheet you find the following balances: cas

Triss [41]

Answer:

The correct answer is $1,800,000.

Explanation:

According to the scenario, the computation of the given data are as follows:

Net working Capital = Current Assets - Current Liabilities

Where,

Current Assets = cash and marketable securities + accounts receivable + inventory

Current Assets = $400,000 + $1,200,000 + $2,100,000 = $3,700,000

And Current Liabilities = accrued wages and taxes + accounts payable + notes payable

Current Liabilities = $500,000 + $800,000 + $600,000 = $1,900,000

So, Net Working Capital = $3,700,000 - $1,900,000

= $1,800,000

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3 years ago

What is a stock split and when does it usually occurs?​

What is a stock split and when does it usually occurs?