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lapo4ka [179]
4 years ago
6

On June 30, the board of directors of Sandals, Inc., declares and pays a 100% stock dividend on its 30,000, $1 par, common share

s. The market price of Sandals common stock is $35 on June 30.
Business
1 answer:
Gwar [14]4 years ago
7 0

Answer:

The accounting entries is as follows:

Debit Retained Earnings($35 by 30,000 shares) $1,050,000

Credit: Common Shares Account at Par Value($1 by 30,000 shares)  $30,000

Credit Share Premium Account for Additional Paid in Capital ($34 by 30,000) = $1,020,000

Explanation:

A stock dividend is payment to shareholders by the company in the form of additional shares rather than dividend payment.  This is common where the company is short of liquid funds to effect payment of dividends to its shareholders. They are usually issues in the form of fractions of existing holdings. Stock dividend increases the overall share holdings of the shareholder.

For Stock Dividend, the accounting entry is to transfer from the Retained Earnings to the Share Account and Share Premium or Additional Capital account.

The Share account is credited with the par value of the additional shares issued while the difference between the par value and the market value is credited to the Share Premium account. The full amount of the stock dividend is likewise debited to the Retained Earnings account.

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Assume that the risk-free rate of interest is 6% and the expected rate of return on the market is 16%. A share of stock sells fo
Tju [1.3M]

Answer: Price of stock at year end =$53

Explanation:

we first compute the Expected rate of return using the CAPM FORMULAE that

Expected return =risk-free rate + Beta ( Market return - risk free rate)

Expected return=6% + 1.2 ( 16%-6%)

Expected return= 0.06 + 1.2 (10%)

Expected return=0.06+ 0.12

Expected return=0.18

Using the formulae Po= D1 / R-g  to find the growth rate

Where Po= current price of stock at $50

D1= Dividend at $6 at end of year

R = Expected return = 0.18

50= 6/ 0.18-g

50(0.18-g) =6

9-50g=6

50g=9-6

g= 3/50

g=0.06 = 6%

Now that we have gotten the growth rate and expected return, we can now determine the price the investors are expected to sell the stock at the end of year.

Price of stock = D( 1-g) / R-g

= 6( 1+0.06)/ 0.18 -0.06

=6+0.36/0.12

=6.36/0.12=  $53

3 0
3 years ago
UDig is a large mining company based in country B. UDig is in the private sector. It supplies
Arada [10]

A private company is a for-profit organization that does not belong to the state but a particular group or individual.

The term private company refers to a for-profit organization that is controlled by a group of people or an individual and does not belong to the State.

Private companies are also characterized by:

  • It develops an economic activity such as the production, distribution, or sale of some good or service to obtain profits (for profit).
  • It can be sold to the State, but it would cease to be a private company.
  • It can be privatized after being a public company.
  • It can compete with the public company.
  • You must pay taxes to the government and guarantee for your workers all the benefits established by law.

The private sector refers to the set of private companies in a country, they can be foreign or national companies.

Note: The question is incomplete. Here's the full question:

Define 'private sector'.

UDig is a large mining company based in country B. UDig is in the private sector. It supplies businesses in country B with 30% of the coal they need and the rest is imported.

UDig now has eight mines but plans to close two of them. This will threaten 1800 employees with redundancy. The Managing Director said: ‘I blame the appreciation of country B’s exchange rate and new legal controls, including those to protect the environment. The Government should help private sector businesses. '

Learn more in: brainly.com/question/24927689

5 0
3 years ago
Nancy, an employee at MegaWorks Corp., has been on the job for only a week. She needs to ask the accountant some questions, but
Ghella [55]

Answer:

D. Ask someone for the accountants name.

Explanation:

I say (D) because you only been working there for a week you just got hired so the other employees there shouldn't mind helping you out.

6 0
3 years ago
The price of a camera decreases from $200 to $180, and in response to the price change the quantity demanded increases from 60 t
bonufazy [111]

The price of a camera decreases from $200 to $180, and in response to the price change the quantity demanded increases from 60 to 70 units. Therefore, demand for cameras in this price range is inelastic.

An economic word known as "inelasticity" describes an item or service's unchanging quantity when its price varies. When prices rise, consumers' purchasing patterns essentially stay the same, and when prices fall, those same purchasing patterns still hold true. This is known as inelastic demand. When an item or service's quantity remains constant when its price increases, it is said to be "inelastic. "When a good or service's price increases or decreases, consumers' purchasing patterns essentially stay the same. The same is true when the price of the good or service decreases. The demand for an item or service that is totally inelastic would not fluctuate regardless of price; however, no such good or service exists. Elastic contrasts with inelastic.

To learn more about inelasticity visit here;

brainly.com/question/28192591

#SPJ4

7 0
1 year ago
Which of the following is true of a good survey about a particular industry
prohojiy [21]

The answer is: D. it has a broad sample, including people who know nothing about the industry.

Any industry consist of three players. The producers, the consumers, and the regulators. Consumers are the one that made the most purchase for the industry and can influence it, but they tend to know nothing or very little with the industry, which is why such sample is needed.

6 0
3 years ago
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