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3 years ago

When retained earnings are not enough to meet their long-term funding needs, businesses may be able to raise funds by:

Business

1 answer:

eimsori [14]3 years ago

4 0

Answer:

A.selling common stock.

Explanation:

A business raises capital through debt or equity. Debts represent borrowed funds, which include bonds and loans. Equity represents the owner's funds, which comprises of shares and retained earnings.

Should a business not have enough funds for its long term needs, it can sell more shares to the existing shareholders or the general public. Shares represent ownership of the company. Selling common stock means that the company will receive the funds it requires in exchange for ownership rights. Shareholder earns dividends as a reward for providing capital to businesses.

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Carol and Dave each purchase 100 shares of stock of Burgundy, Inc., a publicly owned corporation, in July for $10,000 each. Caro

Illusion [34]

Answer:

b. They are treated differently because the loss in value of Carol's stock is the result of a sale, while the loss in value of Dave's stock is simply a decline in value.

Explanation:

Although the stock owned by Carol and by Dave declines in value by $2,000, however Carol only has a realized and recognized loss of $2,000. The main factor in determining whether a disposition has taken place often whether an identifiable event has occurred. In the current scenario, Carol’s stock sale qualifies as a disposition and the Dave’s stock value decline does not qualify as a disposition and is simply a decline in value.

6 0

4 years ago

Deb and Rusty know that buying a house will save them money on taxes because they get to deduct the interest they pay to the ban

Margarita [4]

Answer:

Their income after 20 years would be 72,550 dollars.

Explanation:

The income after 20 years can easily de determin by using compounding

formula

Future Value = Present Value (1 + I)^ 20

= 90,000 (1 + 0.03)^ 20

= 162,550 dollars

Income can be determing by subtracting Pv from Fv i.e

Income = 162,550 - 90,000 = 72,550

Calculation on excel sheet

A B C D

1 90,000 1.03 = A1 * 1.03 = C1-A1

2 = D1 1.03 = A2 * 1.03 = C2-A2

20 = D19 1.03 = A20 * 1.03 = A20 - C20

* In work sheet colunm D will show income on investment.

4 0

4 years ago

What are the things that you need to change for you to be a better person??

ivann1987 [24]

Explanation:

Any negative attitude you might ha e toward life and/or work
If the way you treat others is not how you want to be treated, you need to change your behavior.
Be open-minded
Always try to see the good
Love yourself

4 0

3 years ago

Andreasen Corporation manufactures thermostats for office buildings. The following is the cost of each unit. Materials $ 36.00 L

ICE Princess25 [194]

Answer:

Instructions are listed below

Explanation:

Giving the following information:

The following is the cost of each unit:

Materials $ 36.00

Labor 14.00

Variable overhead 4.00

Fixed overhead ($1,890,000/105,000 units) 18.00

Total $ 72.00

Simpson Company has approached Andreasen with an offer to buy 8,000 thermostats for $60 each. The regular price is $100.

Simpson requires that each unit use its branding, which requires a more expensive label, resulting in an additional $2.00 per unit material cost. The Simpson order will also require a one-time rental of packaging equipment for $30,000.

Because this is a special offer and we have unused capacity, we will not have into account the fixed costs.

Costs:

Materials $ 36.00

Labor 14.00

Variable overhead 4.00

Label= 2

Total variable cost= $56

Total cost= 56*8000 + 30000= $478,000

B) Sales= 8000*60= $480,000

Costs= 478,000

Gross profit= 2,000

The offer is profitable.

C) break-even point= fixed costs/ contributionmargin= 30000/ (60-56)= 7500 units

5 0

4 years ago

Are monopolies good or bad or both and why?

ivanzaharov [21]

Bad because than it gives no competition off other businesses which essentially is not good because than the monopoly will dominate and become way too powerful and totally crush the economy.

5 0

3 years ago