A reverse stock split is defined as a(n):

On January 15, Pinkney, Inc., issued 10,000 shares of $10 par value common stock in exchange for land and a building. Five years

vodomira [7]

Answer:

Jan 15 Land $45,000 Dr

Building $95,000 Dr

Common Stock at par $100,000 Cr

Paid in Capital in Excess

of Par, Common Stock $40,000 Cr

Explanation:

The assets are recognized by a company at the market value on the day of transaction. The market value of land and building was $140,000 (45000 + 95000). Thus, the stock issued against these assets was issued at $14 per share ($140000/10000) and a premium of $4 / share was received.

The Land is debited by $45000 and building by $95000 while we credit the common stock at par value $100000 and credit the premium $40000.

7 0

2 years ago

In 1-3 sentences, please describe how a digital ink pen can make a task more efficient.

zalisa [80]

ANSWER: There are many ways how the task is made efficient by Digital Ink Pens.

1) Digital Ink Pens will never run out of ink as they do not use ink at all for writing.

2) Digital Ink Pens can be used to take notes on any device such as mobiles, tablets etc. without the need of any paper.

3) As these pens do not use any paper for writing there will be no worry of losing any paper after taking notes on it.

7 0

3 years ago

Read 2 more answers

jose went in to work but never came out, then his wife anna went in and she did came out. Everyone is asking have they been kidn

Oksanka [162]

The may are at the store for some milk

5 0

2 years ago

A firm has an average loan outstanding of $75,000,000 on a $100,000,000 line of credit. There is a commitment fee of 0.25% on th

Svetlanka [38]

Answer:

2.44%

Explanation:

Average outstanding loan = $75,000,000

Total line of credit = $100,000,000

Unused portion = $25,000,000 ($100,000,000-$75,000,000)

Commitment fee = 0.25%

Interest rate = 3.175% (3+0.175%)

Commitment fee = Unused portion*Commitment fee rate

Commitment fee = $25,000,000*0.0025

Commitment fee = $62,500

Interest = Average outstanding balance*Interest rate

Interest = $75,000,000*0.03175

Interest = $2,381,250

Total borrowing cost = Commitment fee + Interest

Total borrowing cost = $62,500 + $2,381,250

Total borrowing cost = $2,443,750

Effective borrowing rate = Total borrowing cost / Credit limit

Effective borrowing rate = $2,443,750/$100,000,000

Effective borrowing rate = 0.0244375

Effective borrowing rate = 2.44%

4 0

2 years ago

Investment X offers to pay you $5,500 per year for 9 years, whereas Investment Y offers to pay you $8,000 per year for 5 years.

kolezko [41]

Answer:

a). Present value for investment X=$24,762.32, at 8% discount

Present value for investment Y=$27,223.33

b). Present value for investment X=$9,593.43, at 20% discount

Present value for investment Y=$16,075.10

Explanation:

A).

Step 1

Determine the future value of investment X using the expression;

Future value for X=payments per year×number of years

where;

payments per year=$5,500

number of years=9 years

replacing;

Future value of X=(5,500×9)=$49,500

Step 2

Determine the present value of investment X as shown;

F.V=P.V(1+r)^n

where;

F.V=future value of investment=$49,500

P.V=unknown

r=discount rate=8%=8/100=0.08

n=number of years=9 years

replacing;

49,500=P.V(1+0.08)^9

49,500=P.V(1.08)^9

P.V=24,762.32

Present value for investment X=$24,762.32

Determine the future value of investment Y using the expression;

Future value for Y=payments per year×number of years

where;

payments per year=$8,000

number of years=5 years

replacing;

Future value of Y=(8,000×5)=$40,000

Step 2

Determine the present value of investment Y as shown;

F.V=P.V(1+r)^n

where;

F.V=future value of investment=$40,000

P.V=unknown

r=discount rate=8%=8/100=0.08

n=number of years=5 years

replacing;

40,000=P.V(1+0.08)^5

40,000=P.V(1.08)^5

P.V=27,223.33

Present value for investment Y=$27,223.33

B).

Step 1

Determine the future value of investment X using the expression;

Future value for X=payments per year×number of years

where;

payments per year=$5,500

number of years=9 years

replacing;

Future value of X=(5,500×9)=$49,500

Step 2

Determine the present value of investment X as shown;

F.V=P.V(1+r)^n

where;

F.V=future value of investment=$49,500

P.V=unknown

r=discount rate=20%=20/100=0.2

n=number of years=9 years

replacing;

49,500=P.V(1+0.2)^9

49,500=P.V(1.2)^9

P.V=9,593.43

Present value for investment X=$9,593.43

Determine the present value of investment Y as shown;

F.V=P.V(1+r)^n

where;

F.V=future value of investment=$40,000

P.V=unknown

r=discount rate=20%=20/100=0.2

n=number of years=5 years

replacing;

40,000=P.V(1+0.2)^5

40,000=P.V(1.2)^5

P.V=16,075.10

Present value for investment Y=$16,075.10

3 0

3 years ago