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3 years ago

When a corporation wants to raise funds by issuing new stocks or bonds, it generally uses the services of _____.

Business

1 answer:

choli [55]3 years ago

6 0

Answer:

The correct answer is e. an investment banker

Explanation:

Investment bankers are behind some of the biggest businesses that develop in the stock market. These banking professionals are hired by companies to obtain money or capital in the stock market for the main milestones that will occur in the existence of a corporation. Once the relationships between corporate management teams and investment banks are established, the same teams often work together for subsequent events in the stock market. Investment bankers decide how to value companies and offers, and impact opportunities for investors.

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Prepare journal entries to record the following four separate issuances of stock.

m_a_m_a [10]

Answer: PLease find answers in explanation column

Explanation:

1. Being issued for common stock at $20 par value

Account Debit Credit

Cash $96,000

Common stock at $20 par value (4000 x 20) $80,000

Paid in excess capital of par Common stock $16,000

($96,000 - $80,000)

2. Being issued for stated stock at $1 to promoters

Account Debit Credit

0rganisation expenses $20,500

Common stock at $1 stated value (2000 x 1) $2,000

Paid in excess capital of par Common stock

($20,500 - $2,000 $18,500

3. Being issued to promoters at no stated value

Account Debit Credit

Organization expenses $20,500

Common stock, no-par value $20,500

4. Being issued at preferred stock of $50 par value

Account Debit Credit

Cash $242,500

Preferred stock at $50 par value (1000 x 50) $50,000

Paid in excess capital of par Preferred stock

($242,500 - $50,000) $192,500

6 0

3 years ago

On February 1, 2018, Cue Company acquired 1,700 shares of its $1 par value stock for $54 per share and held these shares in trea

Marysya12 [62]

Answer:

The answer is:

April 10, 2019:

Dr Cash 96,900

Cr Treasury stock 91,800

Cr Paid-in capital 5,100

(to record resell of 1,700 repurchase shares at $57)

Explanation:

While the share was repurchased at $54 each; the Treasury stock account is debited at 54 x 1,700 = 91,800. Thus, when resell takes place, treasury stock account must be credited by 91,800.

Cash receipt is 57 x 1,700 = 96,900. Thus, this amount is debited in Cash Account.

The difference between the Dr Cash and Cr Treasury stock will Credited in to Paid-in Capital Account at the amount 5,100; which is also calculated as 1,700 x ( 57-54).

6 0

3 years ago

Suppose that the U.S. government decides to charge wine consumers a tax. Before the tax, 30 million bottles of wine were sold ev

AysviL [449]

Answer:

False

Explanation:

The burden of tax refers to who pays the tax between the buyer and the seller.

More burden of tax usually falls to the party with the more inelastic demand because the quantity demanded would not change despite the increase in price as a result of the tax.

To find the amount of tax per bottle = price of wine - amount received by producers = $6 - $3 = $3

The amount paid by consumers = price after tax - price before tax = $6 - $4 = $2

Amount received by sellers = tax- amount paid by consumers = $3 - $2 = $1

It can be seen that consumers bear a higher burden of tax because they pay the greater tax. This means they have an inelastic demand.

If the tax had been levied on producers, the effect on quantity demanded would have been greater because producers have a more less elastic supply when compared to consumers .

I hope my answer helps you

7 0

4 years ago

Read 2 more answers

What is a private limited company

Travka [436]

A private limited company, or LTD, is a type ofprivately held small business entity. This type of business entity limits owner liability to their shares, limits the number of shareholders to 50, and restricts shareholders from publicly trading shares.

4 0

3 years ago

1. How much interest would you pay on a loan of $1,230 for 15 months at 15 percent APR if the interest is 18.75 per $100?

Alina [70]

1. How much interest would you pay on a loan of $1,230 for 15 months at 15 percent APR if the interest is 18.75 per $100?

The chart probably refers to interest per $100 of loan. So, the interest for a $1,230 loan would be (1230/100) * 18.75 = 230.625 ~ 230.63
So, the answer will be B $230.63.

2. Sherri borrowed $3,200 at 13 percent APR for 18 months. If she must pay 19.5 per $100, what is the total interest?
3,200 / 100 = 32 ... x 19.5 = 624
Principal x int rate x time = 3200 x .13 x 1.5 yr = 624 interest

So, the answer will be the A $624.

3. What is the total amount that Sherri (in question number 2) will repay?

The correct answer will be the $3,824.

7 0

3 years ago