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Daniel [21]
3 years ago
11

A corporation has 12,000 shares of $20 par stock outstanding that has a current market value of $150. If the corporation issues

a 4-for-1 stock split, the market value of the stock will fall to approximately $50.
a. True
b. False
Business
1 answer:
belka [17]3 years ago
5 0

Answer:

False

Explanation:

In a 4-for-1 stock split, for every 1 share held by shareholders, it is multiplied to 4.

if outstanding shares is 12,000, after the split the shares outstanding pictures becomes 12,000 x 4 = 48,000

Market value of shares outstanding = $150 / 4 = $37.50

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AnnZ [28]

Answer:

  • Self employment tax liability = $‭22,323.97
  • Additional Medicare tax liability = $0

Explanation:

According to the IRS, the amount subject to self-employment tax is 92.35% of net income from self-employment for the year.

Alice's taxable income is:

= 92.35% * 196,000

= $181,006

Self employment tax-liability:

Social security tax for 2020 is 12.4% for the first $137,700 of income.

= 12.4% * 137,700

= $17,074.80

Medicare tax:

= 2.9% on taxable income

= 2.9% * 181,006

= $‭5,249.17

Self-employment tax is:

= 17,074.80 + 5,249.17

= $‭22,323.97

<em>Additional Medicare tax applies on only amounts above $200,000 so it is $0 in this case. </em>

4 0
3 years ago
EHealth Corporation has $1,000 par value bonds with 4 years to maturity. The bonds pay an 8% coupon rate with semi-annual coupon
Degger [83]

Answer:

Yield to Maturity(YTM) = 3.47%

Explanation:

<em>The yield to maturity is the required rate of return (discount rate) that would equate the price of the bond and cash outflow  expected from the bond.  The yield on the bond can be determined as follows using the formula below:  </em>

YTM = C + F-P/n) ÷ 1/2 (F+P)  

YTM-Yield to maturity-  

C- coupon  

F- Face Value  

P- Current Price  

DATA  

Coupon = coupon rate × Nominal value = 1,000 × 8%× 1/2=40(note we divide by 2 because interest is paid semi-annually)

n= 4×2 = 8 (note there 2 half months in a year)

Face Value = 1000

YM-?, C-40, Face Value - 1,000, P-103.75/100×   1000 = 1037.5

YM = (40 + (1000-1037)/8) ÷ ( 1/2× (1000 + 1037.5  ) )  =0.0347

YM = 0.0347 × 100 = 3.47%  

Yield to Maturity = 3.47%

5 0
3 years ago
Which of the following methods of employee evaluation is best used when employees are heavily involved in teamwork? Critical inc
natka813 [3]

Answer:

The correct answer is letter "B": 360-degree performance appraisal.

Explanation:

A 360-degree performance appraisal is an employee-evaluation approach in which the coworkers, subordinates, supervisors, and the same employees provide a rating of their performance. This type of activity allows employees' performance to be tracked after different intervals and requires the <em>collaboration and interaction</em> of all the individuals possible within the organization.

4 0
3 years ago
Outsourcing is becoming more and more common, but it is a controversial idea in the United States. Why do you think this is such
aliya0001 [1]

Answer:

Outsourcing is a contested idea because the original company loses control of the job they are trying to complete. Outsourcing is a bad idea because it also causes jobs to be lost.  (you might want to change the wording a bit.)

Explanation:

8 0
3 years ago
The following legal claims exist for Huprey Co. Identify the accounting treatment for each claim as either (a) a liability that
Deffense [45]

Answer:

Huprey Co.

Identifying the accounting treatment for each claim as either (a) a liability that is recorded or (b) an item described in notes to its financial statements:

1. Huprey (defendant) estimates that a pending lawsuit could result in damages of $1,550,000; it is unlikely that the plaintiff will win the case.a. A liability that is recorded.

b. An item described in notes to its financial statements.

2. Huprey faces a loss on a pending lawsuit that it is unlikely to lose; the amount is reasonably estimable.

a. An item described in notes to its financial statements. b. A liability that is recorded.

3. Huprey faces a probable loss on a pending lawsuit; the amount is reasonably estimable.a. An item described in notes to its financial statements.

b. A liability that is recorded.

Explanation:

Huprey Co. will recognize and record contingent liabilities in its accounts when it can be reasonably established that the future event will occur and the amount of the liability can be reasonably estimated. The implication is that Huprey Co. must establish two things before a contingent liability is recognized and recorded.  One is that the probability or the likelihood or the chance that the event will happen exists and can be estimated.  With the probability estimate, it becomes possible for Huprey Co. to also estimate the amount that the happening of the event will cost it.

4 0
2 years ago
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