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Evgen [1.6K]
3 years ago
15

A corporation has 50,000 shares of $28 par stock outstanding that has a current market value of $150 per share. If the corporati

on issues a 4-for-1 stock split, the market value of the stock will fall to approximatelya. $7.00
b. $112.00
c. $37.50
d. $600.00
Business
2 answers:
sp2606 [1]3 years ago
5 0

Answer:

c. $37.50

Explanation:

A stock split refers to a situation whereby a company issue its new shares to the existing shareholders of the company in proportion of the current holdings of each shareholder.

When there is a stock split, it will make the number of shares of the company will increase, leads to a fall in the market price per share to the extent of the number of the split, but the total market capitalization of the company will still remain the same without causing dilution.

Based on the explanation, the price to which the market value of the stock of the corporation will fall to after the stock split can be calculated as follows:

New market value of the stock = Current market value ÷ Number of stock received per stock

                                                    = $150 ÷ 4

New market value of the stock = $37.50

Therefore, the market value of the stock will fall to approximately $37.50 from $150 if the corporation issues a 4-for-1 stock split.

Dahasolnce [82]3 years ago
3 0

Answer:

c. $37.50

Explanation:

The computation of the market value of the stock split is shown below:

= Current market value ÷ four ÷ one

= $150 per share ÷ 4 ÷ 1

= $150 per share ÷ 4

= $37.50

Simply we divide the current market value by the four for one stock split ratio so that the correct market value can come. The four for one reflect the ratio criteria which is mentioned in the question

All other information which is given is not relevant. Hence, ignored it

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Answer:

What are the answers?

Explanation:

There is no picture. Maybe remake this question with a picture with the answers shown.

4 0
3 years ago
There are a number goods that over time, for a variety of reasons, transition from being a normal good to an inferior good or fr
boyakko [2]

Answer:

d. the camry becomes an inferior good because the good is now perceived as lower in quality than a lexus

Explanation:

There are a number goods that over time, for a variety of reasons, transition from being a normal good to an inferior good or from being an inferior good to a normal good. One such example of a good is the Toyota Camry. In the 1980s, more income for a household usually resulted in more Camrys being purchased. However, today more Toyota Camrys are purchased by households that have experienced a reduction in income.

How could this happen?

<u>This could only have happened because of a change in perception in households over time. </u>

It is stated in the Scenario that ''today more Toyota Camrys are purchased by households that have experienced a reduction in income.''

<u>That means Toyota Camry has become an inferior good that is purchased more when income falls.</u>

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7 0
3 years ago
The inventory data for an item for November are: Nov. 1 Inventory 20 units at $19 4 Sale 10 units 10 Purchase 30 units at $20 17
kolezko [41]

Answer:

=  $490

Explanation:

<em>Under the </em><em>First-in-First-Out  </em>( FIFO ) <em>method of inventory valuation,  inventories are valued using the price of the earliest batch in stock until the batch is exhausted when the price of the next oldest batch is used and so on.</em>

Date     sale units       Workings                         Value

              10                    10 × $19                              190

               20        (10 × $19)+( 10 × $20)                  390

The cost o he merchandise = $190 + $390

                                             =  $490

8 0
3 years ago
At March 31, the end of the first month of operations, the usual adjusting entry transferring prepaid insurance expired to an ex
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Answer:

A and B

Explanation:

A) income statement

insurance expense-understand net income-overstated

B) balance sheet

prepaid insurance -overstated stockholders equity -overstated

6 0
3 years ago
Chik’s Chickens has accounts receivable of $6,333. Sales for the year were $9,800. What is its average collection period?
MAXImum [283]

Answer:

The answer is 235 days

Explanation:

Average collection period can also be called Days' outstanding period. And it is the number of days it takes a business to collect its money or receivables from the goods or services sold on credit.

Days' reveivables period or Average collection period = 365 days / reveivables turnover.

Receivables turnover = Sales/ average receivable

$9,800/$6,333

= 1.55

Average collection period=

365 days/1.55

=235 days

6 0
3 years ago
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