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timofeeve [1]
3 years ago
14

On January 1, C company sells 50,000 shares of $3 par common stock for $5. It does not issue any preferred stock. Later on the c

ompany buys back 10% of its common shares outstanding for $7 per share. Total equity on December 31 is $300,000. What is retained earnings on December 31
Business
1 answer:
cestrela7 [59]3 years ago
5 0

Answer:

$85,000

Explanation:

Given that,

Shares sold = 50,000 shares of $3 par common stock for $5

Buys back = 10% of its common shares outstanding for $7 per share

Total equity on December 31 = $300,000

Balance in stockholder's equity without retained earnings:

= Beginning balance in stockholder's equity + Increase in stockholder's equity - Decrease in stockholder's equity

= $0 + (50,000 × $5) - (50,000 × 10% × $7)

= $250,000 - $35,000

= $215,000

Retained earnings on December 31:

= Total equity at December 31 - Balance in stockholder's equity without retained earnings

= $300,000 - $215,000

= $85,000

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ohaa [14]

Answer:

a. The bond Price = $1,050.37

b. The bond Price = $927.29

Explanation:

Missing question: <em>a. 6.50%  b. 11.30%</em>

<em />

A. Face value = 1,000

Coupon rate = (8+3/8)% = 8.375%

Years = 2

PMT = 1000*8.375% / 2 = 41.88

No of years to maturity = 3

Number of compounding period = 6

Market rate of return = 6.50%

Market rate of return per period = 6.50%/2 = 3.25%

The bond Price = PV(Rate, Nper, PMT, FV)*-1

The bond Price = PV(3.25%, 6, 41.88, 1000)*-1

The bond Price = $1,050.37

B. Face value = 1,000

Coupon rate = (8+3/8)% = 8.375%

Years = 2

PMT = 1000*8.375% / 2 = 41.88

No of years to maturity = 3

Number of compounding period = 6

Market rate of return = 11.30%

Market rate of return per period = 6.50%/2 = 5.65%

The bond Price = PV(Rate, Nper, PMT, FV)*-1

The bond Price = PV(5.65%, 6, 41.88, 1000)*-1

The bond Price = $927.29

5 0
3 years ago
URGENT!
djyliett [7]

Answer : all of the above

I think this is the answer.

3 0
3 years ago
2. What are the importance of vocation and business?​
Alik [6]

Answer:

A major part of your life is your vocation. This is your career or even your business. Fulfillment in your vocation can contribute to leading a satisfying and successful life. Factors involved in having a satisfying vocation are that you should have a purpose, help others and be concerned about future generations

5 0
2 years ago
Adam kisses the sleeve of Eve’s blouse, an act to which she did not consent. Has Adam committed a tort and if so, which one? Exp
FromTheMoon [43]

Answer:

Yes, Adam committed a tort.

Explanation:

In the situation, when Adam kisses the sleeve of Eve's blouse but without her consent, he committed  a tort. A tort can be defined as a civil wrong which harm other. Here, Adam's act of kissing the sleeve was an invasion of Eve's privacy. It also caused her emotional distress. Therefore Adam has a legal liability in this case as it is tort.

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2 years ago
In 3-4 sentences describe how economic liberty helps water the "money tree" in a free enterprise.
il63 [147K]

Answer:

It helps giving you the ability to choose what you think is best for your business

Explanation:

Vic, using the money tree metaphor is awesome in order to explain. Think about your free enterprise (let’s say… a store that sells trees!).

What you need in order to start and run a business? A place to sell those trees, employees, products, infrastructure, etc., and capital to fund all that. All that business plans and models that you will develop in order to have a successful business will require that you make economic decisions, actions. And, in order to make those decisions, you need economic liberty, which is exactly the ability one has to make economic decisions without political, economic or social blocks.

Imagine that in your region you can only sell trees with red leaves, or your trees are taxed much more than trees coming from overseas, or that employment law requires that no employee gets near a plant (who knows, it could be to prevent allergic season!). That would make super hard to develop your business right?

That’s how economic liberty could help you grow your money tree; into giving you the ability to choose what you think is best for your business.

6 0
3 years ago
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