Expenditures that add to the utility of fixed assets for more than one accounting period are

Presented below is the stockholders' equity section of Mead Corporation at December 31, 2006: Common stock, par value $20; autho

marishachu [46]

Answer:

a. $1,965,000

Explanation:

The computation of total stockholders' equity is shown below:-

Paid-in capital from Treasury Stock = 1,800 × ($30 - $28)

= 1,800 × $2

= $3,600

Retained earning = $500,000 + $450,000

= $950,000

Treasury stock = ((3,000 - 1,800) × $28) + (3000 × 35)

= (1,200 × $28) + (3000 × 35)

= $33,600 + $105,000

= $138,600

Total stockholders' equity on December 31, 2007 = Common stock + Paid-in capital in excess of par value + Paid-in capital from Treasury Stock + Retained earnings - Treasury stock

= $900,000 + 250,000 + $3,600 + $950,000 - $138,600

= $2,103,600 - $138,600

= $1,965,000

So, we have applied the above formula.

8 0

4 years ago

Which of the following statements is true in the context of selecting the best alternative? a. The decision maker can only selec

Assoli18 [71]

Answer:

d. The decision maker must only stick to completely rational, mathematical analysis while selecting an alternative.

Explanation:

It is most ideal for a decision maker to stick to completely rational way of selecting an alternative as this means that the decision maker will only make choices that will be of maximum benefits and low costs. Factors such as personal feelings, or sense of obligation do not interefere when a decision maker sticks to completely rational and mathematical analysis method of decision making.

7 0

3 years ago

Harrison and Sherrie are making decisions on their bank accounts. Harrison wants to put more money in as a principle amount beca

Troyanec [42]

Sherrie wants to put the original money in an account with a higher interest rate. Explain which method will result in more money.

Answer: In this case I would say that both Sherrie and Harrison are good methods that will result in more money. As to find out which idea would make the most bang for the buck we would need actual data like interest rates.

I hope it helps, Regards.

5 0

4 years ago

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The premium on a put option on the market index with an exercise price of 1050 is $9.30 when originally purchased. At expiration

lianna [129]

Answer:

The put payoff = $1,072 - $1,050 = $22 per share

Explanation:

The put payoff is simply the difference between the spot price and the exercise price.

To determine the real profit obtained in this transaction we would need to know the investor's return rate. One of the basic pillars in finance it that $1 today is worth more than $1 tomorrow. We need a return rate to adjust the premium paid, for example if the return rate = 6%, then the premium would have been $9.30 x (1 + 6%/12)² = $9.30 x 1.005² = $9.39

profit = number of shares x (put payoff - adjusted premium)

5 0

4 years ago

Real estate is a great investment for everyone, particularly since the money is more liquid than common stocks. true or false

Musya8 [376]

<span>this assumption is false. Liquidity of money refers to the ease with which the owner of an asset can convert it into cash. it is easier to convert common stocks into cash rather than attempt to raise cash from sale or mortgage of real estate assets.</span>

4 0

3 years ago

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