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Mumz [18]
3 years ago
6

Wheeler Company issued 5,000 shares of its $5 par value common stock having a fair value of $25 per share and 7,500 shares of it

s $15 par value preferred stock having a fair value of $20 per share for a lump sum of $260,000.
The proceeds allocated to the preferred stock is:
a. $232,917b. $162,500c. $141,818d. $118,182
Business
1 answer:
Arte-miy333 [17]3 years ago
3 0

Answer:

Option (c) $141,818

Explanation:

Data provided in the question:

Number of common stocks issued = 5,000

Value of common stock = $25 par value

Number of preferred stocks issued = 7,500

Value of preferred stock = $20 par value

Lump sum value of total shares issued = $260,000

Now,

Fair value of the preferred stocks = 7,500 × $20

= $150,000

Fair  value of the common stocks = 5,000 × $25

= $125,000

Thus,

Total value of the stocks issued = $150,000 + $125,000

= $275,000

Therefore,

Proceeds allocated to the preferred stock

= Lump sum value × [ Fair value of the preferred stocks ÷ value of the stocks ]

= $260,000 × [ $150,000 ÷ $275,000 ]

= $141,818.18 ≈ $141,818

Hence,

Option (c) $141,818

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iris [78.8K]

The entry of firms into a market reduces the profits of existing firms in the market.

An economic market is a composite structure that is composed of multiple elements.

  • Firms can be placed in the category of competitive markets which are broadly categorized as perfect competition firms or monopolistic competition firms; monopoly, and oligopoly.
  • An entry is characterized by a response to increasing profits in the industry.
  • These high profits facilitate the entry of new firms into the market.
  • The profits of the existing firms reduce as a reaction to the entry of new firms into a market structure.
  • Existing firms exit when they start facing recurrent losses.

Therefore, the entry of firms into a market reduces the profits of existing firms in the market.

Learn more about the entry of firms into a market here: brainly.com/question/2975624

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4 0
2 years ago
A local pizza parlor located on campus offers a student rate for its pizza lunch special. This is a form of __________. a. preda
Blababa [14]

Answer:

E. Price discrimination and is legal

Explanation:

Price discrimination is a situation whereby an organization decides to sell its commodity at different prices to different customers. Here, the pizza parlour offers student rate for students that's different from the rate offered to other customers that are not students. It is the sales of a particular type of product to different buyers or consumers at different prices. It is legal. It only becomes otherwise (illegal) if it is done on the basis of racial discrimination, religious discrimination and so on.

7 0
3 years ago
Read 2 more answers
Cost of Goods Sold Allyson Ashley makes jet skis. During the year, Allyson manufactured 94,000 jet skis. Finished goods inventor
Romashka [77]

Answer:

1. Number of Jetskis sold = 93,600

2. cost of Jetskis sold = $205,920,000

Explanation:

First, let us lay out the information given clearly:

January 1  finished goods inventory = 6,800

December 31 finished goods inventory = 7,200

number of Jet skis manufactured = 94,000

1. Number of Jet skis sold:

let us calculate the total number of jetskis that were available throughout the year

Total number of Jet skis in stock during the year = number of Jet skis manufactured + January 1  finished goods inventory (beginning inventory)

Total number of Jet skis in stock during the year = 94,000 + 6,800

Total number of Jet skis in stock during the year = 100,800

Number of Jetskis sold = (Total number of Jet skis in stock during the year) - (December 31 finished goods inventory)

Number of Jetskis sold = 100,800 - 7,200 = 93,600

2. cost of good sold:

product cost of 1 Jetski = $2,200

Number of Jetskis sold = 93,600

∴ Cost of Jetskis sold last year = 93,600 × 2,200 = $205,920,000

7 0
3 years ago
A 401(k) account is very valuable because ______.
yulyashka [42]
A 401(k) gives you tax breaks, therefore I'd say A.
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Selected information from Gerrard, Inc.’s financial activities in the year 2004 was as follows: Net income was $330,000. The tax
ValentinkaMS [17]

Answer:

$0.26

Explanation:

diluted earnings per share (EPS) = (net income - preferred dividends) / (weighted average outstanding shares + diluted shares)

net income = $330,000

preferred dividends = 2,000 x $500 x 8% = $80,000. Since the preferred stocks are convertible, they will be considered diluted shares. Therefore, no preferred dividends will be included in the calculation.

weighted average outstanding shares:

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diluted shares = 2,000 preferred stocks x 200 = 400,000

diluted EPS = $330,000 / (866,666.7 + 400,000) = $0.260526247 ≈ $0.26

8 0
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