Answer:
135,000 shares
Explanation:
The stock split is the re-denomination of the shares where the number of shares increases without a corresponding increase in shareholders' equity.For instance assigning two shares for each share had earlier with two new shares priced at the price of previous one share,however in calculating the number of shares applicable to basic earnings stock split is treated retrospectively,as if it has always been part of the company's shares
Opening number of shares 60,000
add increase due to stock split(2*60,000)-60,000 60,000
new shares half-way through the year 30,000*6/12 15,000
Weighted average number of shares 135,000
Depreciating means to become less valuable over time, so I believe the correct answer is <span>b. become less valuable over time.</span>
Answer:
Correct option is (c)
Explanation:
When the company repurchases common stock, it has to pay cash to the shareholders to gain rights on the stocks. So, cash decreases in this case.
Payment of dividend also decreases cash from balance sheet.
When company needs cash for investment or growth purpose, it issues common stock to raise funds, thereby increasing cash in the company's balance sheet.
When company gives more time to its debtors, receipt of cash is delayed thereby not increasing cash in balance sheet.
Purchase of new equipment will reduce cash balance.
So issue of new shares increase cash balance in balance sheet.
Answer: the correct answer is A. Turn multiple negative cash flows into a single negative cash flow by summing all negative cash flows over the project's lifetime.
Explanation: MIRR stands for Modified Internal rate of return. If you add up all negative cash flows in just one you are not taking into account a very important variable which is "time". It is not the same if you have a negative cash flow in 2 years than in 5 years.
Answer:
$490,566.04
Explanation:
Calculation for how much will you pay for the policy
Using this formula
Present value of perpetuity= Investment policy Annual inflows/ Required rate of return
Let plug in the formula
Present value of perpetuity=$26,000/0.053
Present value of perpetuity=$490,566.04
Therefore the amount that you will pay for the policy is $490,566.04
