1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
weeeeeb [17]
3 years ago
13

Murphy's, Inc., has 85,000 shares of stock outstanding with a par value of $1 per share. The market value is $12 per share. The

balance sheet shows $74,500 in the capital in excess of par account, $85,000 in the common stock account, and $141,500 in the retained earnings account. The firm just announced a stock dividend of 11 percent. What will the balance in the capital in excess of par account be after the dividend
Business
1 answer:
nexus9112 [7]3 years ago
8 0

Answer:

The correct answer is $177,955.

Explanation:

According to the scenario, the computation of the given data are as follows:

Capital in excess of par account = $74,500

Common stock = $85,000

Retained earning = $141,500

So, we can calculate the balance in the capital in excess of par account be after the dividend by using following formula:

Capital after Dividend = Balance sheet amount of Capital + ( Issued additional share × Capital in excess of par per share )

Where,

Issued additional share = 11% × $85,500 = 9,405

And Capital in excess of par per share = $12 - $1 = $11

By putting the value, we get

Capital after dividend = $74,500 + ( 9,405 × $11)

= $74,500 + $103,455

= $177,955

You might be interested in
Aggregate Demand is everything produced while Simple Demand is one good. Which statement reflects Aggregate Demand?
lys-0071 [83]
Calculating real output
8 0
3 years ago
The Occupational Safety and Health Act does not require employers to abide by the regulations and the safety and health standard
aliya0001 [1]
The answer is False
3 0
2 years ago
When the economy is at equilibrium, a) inventories must equal zero. B) there are no leakages. C) leakages equal aggregate demand
jeyben [28]

Answer:D) leakages equal injections

Explanation:

6 0
2 years ago
In many cases, companies that enter a market after innovative products have been introduced can achieve long-term competitive ad
yuradex [85]

Answer:

First-mover

Second-mover

Explanation:

A first mover is a provider of product, that achieves a market advantage by being the first type of product to be marketed. Generally, being gets the first firm in the market to get the advantage of the strong market and customer satisfaction.

The "second mover's advantage" is the value of joining others into a business or imitating an old product that a new innovative company gets.

In this case VisiCalc is a First-mover and Microsoft is a Second-mover.

3 0
3 years ago
The Quick Buck Company is an all-equity firm that has been in existence for the past three years. Company management expects tha
Vika [28.1K]

Answer and Explanation:

a. The computation of the current price per share is shown below:

Current price per share = Value of Firm  ÷ Number of stock outstanding

where,

Value of Firm is

= $800,000 ÷ 1.13 + $1,250,000  ÷ 1.13^2

= $1,686,897.96

And, the number of outstanding shares is 35,000 shares

So, the current share price is

= $1,686,897.96 ÷ 35,000 shares  

= $48.20

c. The computation of the shares of stock sold is shown below:

No of shares of stock must be sold is

= ($910,000 - $800,000) ÷ 48.20

= $2,282.16

c. The computation of the new price per share of stock is shown below:

Current price per share = Value of Firm  ÷ Number of stock outstanding

where,

Value of Firm is

= $910,000 ÷ 1.13 +  $1,250,000 ÷ 1.13^2

= $1,784,243.09

And, the number of outstanding shares is 35,000 shares and $2,282.16

So, the current share price is

= $1,784,243.09  ÷ 35,000 shares  + $2,282.16

= $47.86    

5 0
3 years ago
Other questions:
  • It is generally agreed internationally that the one thing that can most readily undermine equity, efficiency and integrity in th
    10·1 answer
  • Susan recently quit working for a local firm and has yet to find a new job. She knows she can maintain her health insurance from
    7·1 answer
  • For each of the following independent situations, prepare journal entries to record the initial transaction on December 31 and t
    8·1 answer
  • If a foreign country's consumers tend to only purchase products that are produced locally, the least effective strategy for a U.
    7·1 answer
  • Jenny would like to know whether she has budgeted enough money per month for groceries while she is in college. She takes a repr
    14·1 answer
  • Dr. Bahri discusses how fast an organization can implement lean, what are the two dimensions of lean and how do they relate to o
    15·1 answer
  • Doug Bradford owned a restaurant and an adjoining parking lot.The city of Medford has been working on a project to prevent flood
    14·2 answers
  • Firestone Tires recently paid an annual dividend of $2.00 on its common stock. This dividend increases at an average rate of 3.8
    13·1 answer
  • Ms. Tant's case was thrown out of federal court. She later filed it in the New York state court solely as a case involving Mr. B
    9·1 answer
  • Text: "managerial accounting: tools for business decision making " 9th edition, isbn 9781119709589
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!