Answer:
13,384.62 shares
Explanation:
Current number of shares = $435,000 / $13
Current number of shares = 33461.53846154
Current number of shares = 33,461.54 shares
Stocks outstanding after the reverse stock split = (33,461.54 shares / 5)*2 = 13384.616 = 13,384.62 shares.
So, 13,384.62 shares of stock will be outstanding if the firm does a reverse stock split of 2-for-5.
Answer:
3,600 units
Explanation:
Given:
Selling price per unit = $30
Variable cost per unit = $12
Contribution per unit = Selling price - variable cost
= 30 - 12
= $18 per unit
Fixed cost = $54,000
Increase in fixed cost this year = 54,000 × 1.2 = $64,800
Break even point in units = Fixed cost / contribution margin
Since only fixed cost increase and selling price and variable cost remain same, contribution margin will be $18 per unit
Break even point in units = 64,800 / 18
= 3,600 units
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Answer:
False.
Explanation:
Profit can be defined as the financial benefit received by a business organization when the total revenue exceeds the total costs. Revenues are as result of the sales while the total costs include; costs of running the business, expenditures and taxes. Profit can be calculated using the formula below;
P=R-C
where;
P=profits
R=total revenue
C=total costs
This can also be expressed as;
Profits=Total revenue-total costs.
In the case above, even if the two firms have identical sales, operating costs, employee competence, assets, and financing policies, they don't have identical tax liability. Tax liability can be defined as the amount of tax that is owed to an authority usually the government. Firms usually differ in the amount of tax they are to pay with regard to numerous factors. One factor is that whether the firm is registered as an S corporation or not. An S corporation is a company that does not pay corporate tax. The taxes in an S corporation are filed on individual incomes thus avoiding double taxation.
Answer:
C
Explanation:
A foreign direct investment is a form of controlling ownership/investment in a business in one country's by an entity based in another country. This is to show that since the Saudi business man is making an investment in the form of buying $10 Million stock from IBM it shows that he is expanding the operation of IBM in another country rather than his.
