Answer:
Transaction Assets Liabilities Stockholders' Equity
Issue common stock Increase NE Increase
Issue preferred stock Increase NE Increase Purchase treasury stock Decrease NE Decrease
Sale of treasury stock Increase NE Increase Declare cash dividend NE Increase NE
Pay cash dividend Decrease Decrease NE
100% stock dividend NE NE NE
2-for-1 stock split NE NE NE
When shares are sold or issued, they increase the stockholders equity as people buy these shares. They also increase assets because cash comes into the company when the shares are sold. This is why the Issuing of preference and common stock as well as the sale of Treasury shares had the same effects.
When cash dividends are declared, they become a liability that is owed to equity holders.
When these dividends are then paid, they remove the liability but reduce assets as cash is used to pay the dividends.
100% stock dividend reduces retained earnings but increases equity so stockholders equity does not change.
Answer:
The correct answer is letter "B": an underdeveloped infrastructure.
Explanation:
The worldwide market we live in today has allowed companies to <em>outsource </em>their activities to different countries in an attempt to lower production costs and avoid stiff regulations. However, there are many challenges firms have to deal with while starting businesses in foreign regions.
Depending on the industry of the company, sometimes the firms must invest in countries with underdeveloped infrastructure. It could imply building facilities, bridges, highways or any other infrastructure that will allow the company to conduct its operations normally.
Answer: answer d seem more likly because you have then traveld to another country
Explanation:
Answer: The answer is as follows:
Explanation:
Given that,
Total reserves = $200 billion
Required reserves = 12.5 % of checking deposits
Therefore,
(a) Money multiplier = 
= 
= 8
(b) Money supply = Money multiplier × Total reserves
= 8 × $200 billion
= $1,600 billion
(c) Now, if Fed increases the required reserves to 16% of deposits.
New Money multiplier =
= 
= 6.25
New Money supply = Money multiplier × Total reserves
= 6.25 × $200 billion
= $1,250 billion
Money supply decreases to $1,250 billion.
