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trapecia [35]
2 years ago
6

The market value of Yeates Corporation’s common stock had become excessively high. The stock was currently selling for $270 per

share. To reduce the market price of the common stock, Yeates declared a 3-for-1 stock split for the 310,000 outstanding shares of its $12 par value common stock. Required: a. What entry will be made on the books of Yeats Corporation for the stock split? b. Determine the number of common shares outstanding and the par value after the split. c. Explain how the market value of stock will be affected by the stock split ?

Business
1 answer:
Pani-rosa [81]2 years ago
3 0

Answer:

b. the number of common shares outstanding is 930,000 and the stock split is $4.

Explanation:

Please see attachment

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In 2017, Orear Manufacturing signed a contract with a supplier to purchase raw materials in 2018 for $700,000. Before the Decemb
MArishka [77]

Answer:

d) as a current liability

Explanation:

Current Liabilities are those liabilities which are payable within one years time e.g trade payable, tax payable etc.

The credit against the purchase of inventory is classified as the trade payable and it is paid in a short time, so it will be reported on the balance sheet in current liability section.

5 0
3 years ago
A dollar in hand today is worth_______(less than/more than/equivalent) a dollar to be received in the future because if you had
Free_Kalibri [48]

Answer:

more than

earn interest

discount cash flow (DCF)

Explanation:

The concept of future value represents the amount that a lump sum or series of cash flows will achieve after a given period when compounded at an interest rate. This means that a dollar in hand today is worth more than a dollar to be received since it can be applied to earn interest.

The time value of money, which allows us to evaluate different investments, is also known as discount cash flow (DCF).

3 0
3 years ago
You are offered the following investments: You can invest $500 today and receive $600 in 5 years. The investment is low risk. Yo
grin007 [14]

Answer:

500

Explanation:

6 0
2 years ago
Klose Outfitters Inc. believes that its optimal capital structure consists of 60 percent common equity and 40 percent debt, and
Eduardwww [97]

Answer:

WACC 10.38305%

Explanation:

<em><u>First we solve for the source of financing:</u></em>

Expansion: 5,900,000

60% Equity: 3,540,000

Retained Earnins 2,000,000

then 1,540,000 will be common equity

40% debt: 2,360,000 It can raise up to 3,000,000 so it will be sufficient

D  2,360

E  1,540

RE 2000

V  5,900

Now we can solve for Weighted average cost of capital

WACC = K_e(\frac{E}{E+RE+D}) + K_{re}(\frac{P}{E+RE+D}) + K_d(1-t)(\frac{D}{E+RE+D})

Ke 0.15

Equity weight 0.261016949 (1,540,000 / 5,900,000)

Kre 0.12

RE Weight  0,338983  (2,000,000 / 5,900,000)

Kd 0.1

Debt Weight 0.4 ( 2,360,000 / 5,900,000)

t 0.4

WACC = 0.15(0.261016949152542) + 0.12(0.338983050847458) + 0.1(1-0.4)(0.4)

WACC 10.38305%

5 0
2 years ago
A study by the Environmental Protection Agency looked at the costs and benefits of the Clean Air Act from 1970 to 1990. This stu
qwelly [4]

Answer: d. 44 times higher

Explanation:

The benefits of cleaner air was $22 trillion and the cost of reducing pollution was $500 billion.

The number of times that you would have to multiply this cost of reducing pollution to get to the benefits of cleaner air is:

= 22 trillion / 500 billion

= 22,000 billion / 500 billion

= 44 times higher

5 0
2 years ago
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