Answer:
450,000 shares are outstanding after stock spilt.
Explanation:
Computing numbers of shares outstanding for company after stock spilt is as:
Number of shares outstanding = Number of Shares × Stock Spilt
where
Number of Shares are 300,000
Stock spilt is 3/ 2
Putting the values above:
= 300,000 × 3 / 2
= 450,000 Shares
Note: Determine the number of shares outstanding for the company after stock spilt. Is the requirement.
First calculate sam's share income
40000/2=20000
sam's capital account balance at the end of the year is
sam capital - withdrawals + share income
58,000−15,000+20,000
=63,000
So the answer is 63000
Hope it helps!
Answer: Retained Earnings
Explanation
The profit for the year less the dividends paid, is finally adjusted in the balance sheet under the name Retained earnings. This means that the retained profits increases the equity by the amount retained.
Answer:
Rate of return = 6.64%
Explanation:
Annual coupon rate = 7.5% = 0.075
Face value = 1,000
Coupon payment = 1,000*0.075 = 75
YTM = 8%
Years = 20
Price of the bond = PV(8%, 20, 75, 7.5%)
Price of the bond = $950.91
Rate of return = Selling price + Coupon payment received - Purchase price / Purchase price
Rate of return = $939.05 + $75 - $950.91 / $950.91
Rate of return = $63.14 / $950.91
Rate of return = 0.0663996
Rate of return = 6.64%
