Answer:
B. 100 shares of ABC preferred stock
Explanation:
Shares are ownership stakes of a company that are given out to individuals who contribute to capital base of a company.
Preference shares are those whose owners recieve preference in payment of dividends, a fixed dividend is paid to them.
Ordinary shares recieve less preference when dividend is paid, usually coming last in divedend payment.
In this scenario ABC has decided to pay 10% stock dividend. This will be paid to ordinary share holders.
So the person with 100 preference shares will have 100 preference shares
10% of par value of $100 is 0.1 * 100= $10
Number of shares are 100 so the value is now 100 * $10 = $1,000
Since the conversion rate of preference to ordinary shares is 10:1
Number of preference shares= 1,000 ÷ 10= 100 preference shares
Answer:
Utility
Explanation:
In economics satisfaction and pleasure is defined as a utility. When a person drinks water he/she gains utility that is a sense of satisfaction. The most important factor that increases or decreases the demand for a particular commodity is how much utility or satisfaction it provides to the end-user. Overall, the concept was first explained by Jeremy Bentham and John Stuart Mill.
Answer: C. use 0.8 fewer units of capital.
Explanation:
The Marginal Rate of Technical Substitution (MRTS) shows how much you can decrease capital or labor by in order to keep production constant if you increase either capital or labor.
It is calculated by the formula:
= Marginal product of labor / Marginal product of capital
= 4 / 5
= 0.8
<em>The firm should use 0.8 fewer units of capital in order to maintain the same production level. </em>
Answer:
The answer is: Income statement
Explanation:
As she wants to get information on sales and costs, the Income statement is the statement that she should looking for. With the Balance sheet statement, it only shows information on the financial position reporting the firm's assets, liabilities and owner's equity at a specific point in time rather than the sales and costs firgures during the reporting period.
Furthermore, she should opt for Income statement rather than the common-size income statement because the common-size income statement hardly illustrates any trend during the recent years/ reporting periods, instead, it is only shown each revenue and cost items as percentage of total sales in a specific period.
In the income statement, there should be enough information for the new CFO to find trends on revenues and costs (if any) because the revenue and cost items is detailed enough and at least it should be given the comparision between sales & costs of the reporting period versus the firgures of the previous reporting period.
