Match each term with the correct statement below.

Five months ago Wilson opened up a health club. Which of the following is an implicit cost related to the health club? Group of

polet [3.4K]

Answer:

Wilson previously worked as an accountant, earning $3,000 a month.

Explanation:

Implicit costs or opportunity costs are the extra costs or benefits lost from choosing one activity or investment over another alternative.

In this case, Wilson had to quit his former job as an accountant in order to open his health club. So the salary that Wilson could have earned as an accountant would be the opportunity cost of opening his club.

7 0

3 years ago

Dropshot Corporation stock currently sells for $64.53 per share. The market requires a return of 8 percent on the firm’s stock.

Debora [2.8K]

Answer:

D=$1.52914

The most recent dividend per share paid on the stock is $1.52914.

Explanation:

Formula we are going to use is:

$P=D*\frac{1+g}{r-g}$

Where:

P is the current selling price

D is he recent dividend per share

g is the growth rate

r is the rate of return

Above formula will become:

$D=\frac{P*(r-g)}{1+g} \\D=\frac{\$64.53*(0.08-0.055)}{1+0.055}$

D=$1.52914

The most recent dividend per share paid on the stock is $1.52914.

7 0

4 years ago

the two ways that a company can issue new securities and thereby raise capital in the primary market are through:

Airida [17]

Private Placement and Investment Banking Process, are the two ways that a company can issue new securities and thereby raise capital in the primary market

<h3>What is Primary Market?</h3>

The primary market is the area of the capital market where securities are issued and sold to buyers directly by the issuer, who then receives the proceeds.

Companies, governments, or public sector organizations can raise money in a primary market by issuing bonds, and corporations can do the same by selling new stock in an IPO (IPO). A financing syndicate of securities dealers, investment bank, or underwriter is frequently used for this.

Securities are issued by firms to investors directly in the primary market. Either a further public offering (FPO) or an IPO is used to issue securities (FPO). Through an initial public offering (IPO), a business can raise capital from investors and go public.

A business can raise money on the primary market by selling preference shares. Securities, equity, and debt

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3 0

1 year ago

When the dollar is worth less in relation to currencies of other countries, are you more likely to buy american-made or foreign-

MArishka [77]

When the dollar is worth less in relation to currencies of other countries, you are more likely to purchase American-made product.

<h3>How currencies are valued ?</h3>

Collective supply and demand determine the value of a currency. Numerous variables, such as interest rates, inflation, capital flows, and money supply, have an impact on supply and demand. Currency is most frequently valued using exchange rates.

<h3>What makes a currency more valuable?</h3>

When there is a high demand for a currency, it will appreciate in value. Conversely, when there is a low demand for a currency, it will depreciate in value.

A controlled floating exchange rate is what determines the current exchange rates between nations. With a managed floating exchange rate, each currency's value is influenced by the policies taken by its central bank or government in terms of the economy.

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7 0

2 years ago

On December 31, 2020, Ainsworth, Inc., had 560 million shares of common stock outstanding. Fifteen million shares of 7%, $100 pa

podryga [215]

Answer:

Ainsworth, Inc.

1. Net loss per share for the year ended December 31, 2021:

= $0.211

2. Per share amount of income from continuing operations

= $0.422

3. Comparative Income Statements:

2021 2020

Net income (continuing operations) $240 million $420 million

Net income (including

discontinued operations) ($120 million) $0

Weighted-average common stock shares 558 million 560 million

EPS (continuing operations) $0.43 $0.75

EPS (including discontinued operations) ($0.21) $0

Explanation:

a) Data and Calculations:

December 31, 2020:

Outstanding common stock = 560 million shares

Outstanding 7%, Cumulative non-convertible preferred stock = 15 million shares at $100 par value

April 30, 2021:

Treasury stock purchased = 30 million

June 12, 2021:

5% Common Stock dividend = 26.5 million shares(530 million * 5%)

August 31, 2021:

Treasury stock sold = 12 million

December 31, 2021: Outstanding common stock = 568.5 million

Therefore, net income from continuing operations = $240 million

After-tax loss from discontinued operations = $360 million

December 31, 2021 reported net loss = ($120 million)

1. Net loss per share for the year ended December 31, 2021:

= $120 million/568.5 million = $0.211

2. Per share amount of income from continuing operations = $240 million/568.5 million = $0.422

3. Comparative Income Statements:

2021 2020

Net income (continuing operations) $240 million $420 million

Net income (including

discontinuing operations) ($120 million) $0

Weighted-average common stock shares 558 million 560 million

EPS (continuing operations) $0.43 $0.75

EPS (including discontinued operations) ($0.21) $0

Weighted-average of Common Stock shares:

January 1, 2021: Outstanding 560 million * 12/12 = 560 million

April 30, 2021: Treasury stock 30 million * 8/12 = -20 million

June 12, 2021: Stock dividend 26.5 million *6.5/12 14 million

August 31, 2021: Treasury stock sold 12 million *4/12 4 million

December 31, 2021: Weighted-average outstanding = 558 million

4 0

3 years ago