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Semenov [28]
3 years ago
13

A price weighted index is composed of 3 stocks. Stocks A, B, and C are trading for $100, $56 and $32 respectively. The number of

shares outstanding are 1000 shares (for Stock A), 500 shares (for stock B) and 500 shares (for stock C). Stock A has a two for one stock split, and consequently its price automatically drops to $50 (all other stock prices remain unchanged). What must be the value of the new divisor
Business
1 answer:
gogolik [260]3 years ago
7 0

Answer:

The total value will not change.

Explanation:

Stock split occurs when a stock is divided into parts. The value of each stock will decline but there will be more stocks and overall value will remains same. If stock A goes through a stock split then the new price per stock will decline but the overall value to the investor will remain same.

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Lawson Corp. uses IFR.S and the cost model for intangible assets. On March 1, year 1, Lawson acquired intangible assets with an
Leto [7]

Answer:

b. $10,000 loss $4,000 gain

Explanation:

Since the carrying amount of the intangible assets is greater than its recoverable amount in the year 1, therefore the Lawson Corp shall recognised the impairment loss in respect of intangible assets in year 1 as follows:

Impairment loss=Carrying amount of intangible assets-recoverable amount of intangible asset

Impairment loss=$100,000-$90,000=$10,000 loss

Since the recoverable amount of the intangible assets is greater than its carrying amount  in the year 2, therefore the Lawson Corp shall reverse the impairment loss recognised in year 1 in the following way:

Gain=recoverable amount of intangible asset-Carrying amount of intangible assets

Gain=$94,000-$90,000=$4,000 Gain

So based on the above calculations,the answer shall be b. $10,000 loss $4,000 gain

4 0
3 years ago
Companies choose to Vertically Integrate for all of the following reasons, except____________.a. The company can perform the pro
QveST [7]

Answer:

The correct answer is letter "D": The company desires to enter new markets.

Explanation:

Vertical integration happens when a corporation buys other companies in the supply chain and manages them. There are two types of vertical integration: <em>backward </em>and <em>forward</em>. In backward vertical integration a corporation, like a manufacturer, owns companies that supply inputs to the manufacturing process for businesses.  

In forward vertical integration, a business owns another company in the supply chain to get closer to the end customer.

Thus, <em>vertical integration is not a technique companies use to enter new markets.</em>

8 0
3 years ago
​________ is defined as the extent to which your authority is accepted on grounds of​ competence, vision, or other qualities. A.
lora16 [44]

Answer:

A. Legitimacy

Explanation:

Legitimacy  is defined as the extent to which your authority is accepted on grounds of​ competence, vision, or other qualities. This term is used mostly in the context of political science, mainly describing the right and acceptance of an authority and mostly deals with systems of governments or regimes where there are established individuals appointed authority.

5 0
2 years ago
Read 2 more answers
If the actual unemployment rate is 7% and the cyclical unemployment rate is 2%, then the natural rate of unemployment is:
Luden [163]

Answer:

Hello Friend, I've done my personal research, and I apologize if the answer is incorrect.

The natural unemployment would be 5%.

Explanation:

The percentages of both kinds of employment statuses have an amount of what the natural rate of unemployment would be 5% which is the answer that is provided.

7 0
2 years ago
Who is better off: a person using credit cards or a person refraining from any loans?
PIT_PIT [208]
<span>Who is better off: a person using credit cards or a person refraining from any loans? A person using credit cards is better off </span>from a person refraining from any loans. A person using credit can often purchase more and have more flexibility with their money over someone who only uses cash. There are items and services that do not take cash as a form of payment, so without a credit card the person can not make the purchase. 
3 0
3 years ago
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