This is a logical question m8 the answers A
Answer:
The correct option is that the company receives nothing.
Explanation:
Secondary market stock transactions take place between investors who already hold the stock and the other one who is willing to buy the stock,the company whose stocks are being traded is not a party to the transactions,as a result,would receive nothing from such secondary market stock transactions.
The company would have receive cash if the it had issued shares to new investors for the first time through investment banks ,which is initial public offer,or if shares were issued to existing stockholders,the rights issue
Answer:
rate = 6.3235%
At a market rate of 6.3235% this will be a fair deal
Explanation:
under perpetuities the principal is never redeem. the investor receive cash payment for an indefinite period of time
This means:
perpetuities present value = C/r
where:
C= annual payment
r= rate
680,000 = 43,000/rate
43,000/680,000 = rate
0.06323529 = rate
rate = 6.3235%
Answer: E) debit Contributed Capital, Treasury Stock, $1,800
Explanation:
Treasury stock was bought at price of;
= 22,000/1,000
= $22
Sold 600 for $25 so they made a profit of;
= (25 - 22) * 600
= $1,800
This gain was sent to Contributed Capital, Treasury Stock.
Now that stock is to be sold on March 1, it is sold at $15. Loss from initial purchase is;
= ( 22 - 15) * 400
= $2,800
Debit Contributed Capital, Treasury Stock of the maximum amount it can be debited of to reflect this loss which would be $1,800 which was gained in the February purchase. The rest of the loss will go to Retained earnings.
Answer:
The company’s profit margin for the current year ended December 31 (rounded to the nearest decimal point) is 20%
Explanation:
Use the following formula to calculate the Profit Margin
Profit Margin = 
Where
Net Income = $20,000
Net Sales = $100,000
Placing values in the formula
Profit Margin = 
Profit Margin = 0.2 x 100
Profit Margin = 20%
