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VMariaS [17]
3 years ago
13

Which one of the following is a primary market transaction? Group of answer choices Sale of currently outstanding stock by a dea

ler to an individual investor Sale of a new share of stock to an individual investor Gift of stock from one shareholder to another shareholder Stock ownership transfer from one shareholder to another shareholder
Business
2 answers:
Ostrovityanka [42]3 years ago
8 0

Answer:

The correct answer is the option B: Sale of a new share of stock to an individual investor.

Explanation:

To begin with, the <em>primary market</em> is where the securities are created and therefore that it is in this type of market in where the firms sell for the first time the new shares that they have in stock to the public that are looking to demand it and that is why this is the moment that the investors have to contribute for the first time to the capital of the company. In conclussion, a primary market transaction is the sale of a new share of stock to an individual investor.

trapecia [35]3 years ago
6 0

Answer:

sale of a new share of stock to an individual investor

Explanation:

Securities are created in the primary market. With an IPO which stands for initial public offering, new stocks are sold to the public by companies on a first time basis.

The sale of a new share of stock in the question is an example of a primary market transaction.

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Wildhorse Co. sells merchandise on account for $2800 to Morton Company with credit terms of 2/8, n/30. Morton Company returns $8
kipiarov [429]

Answer: Cash $1,960

Sales returns and allowances $800

Sales discount $40

Accounts receivable $2,800

Explanation:

Sales = $2,800

Sales returns = $800

Discount rate = 2%

The final amount due will be:

= Sales- Sales returns

= $2,800 - $800

= $2,000

Sales discount = 2% × $2,000 = $40

Cash received will be:

Final amount due - Sales discount

= $2,000 - $40

= $1,960

The journal entry will be:

Debit Cash $1,960

Debit Sales returns and allowances $800

Debit Sales discount $40

Credit Accounts receivable $2,800

5 0
3 years ago
Complete the Transaction Worksheet: On the form provided, identify the accounts affected by each transaction and the amount of i
antiseptic1488 [7]

Answer:

I used an excel spreadsheet because there is not enough room here.

Explanation:

Download pdf
6 0
3 years ago
Droz's Hiking Gear, Inc. has found that its common equity capital shares have a beta equal to 2.5 while the risk-free return is
11111nata11111 [884]

Answer:

see explanation

Explanation:

Weighted Average Cost of Capital (WACC) is the cost of a firm from permanent sources of capital pooled together.

WACC = Cost of equity x Weight of equity + Cost of Debt x Weight of Debt + Cost of Preference Stock x Weight of Preference Stock

where,

Cost of equity = Return on Risk free rate + Beta x Risk Premium

                        = 9.00 % + 2.5  x (14.00 % - 9.00%)

                        = 21.50 %

Cost of debt :

<em>similar</em>

N = 7 x 2 = 14

p/yr = 2

pmt = ($787.22 x 8%) ÷ 2 =

fv = $787.22 x number of bonds

pv = $80,000,000

<u>Always use the after tax cost of debt :</u>

after tax cost of debt = interest x ( 1 - tax rate)

7 0
3 years ago
Which is considered good practice concerning the installation of acrylic plastics?
quester [9]

When rivets are used, adequate spacer or other satisfactory means to prevent excessive tightening of the frame to the plastic should be considered good practice concerning the installation of acrylic plastics.

A translucent plastic with exceptional strength, rigidity, and optical clarity is acrylic. Acrylic sheet is simple to manufacture, adheres well to solvents and adhesives, and is simple to thermoform.

Compared to many other transparent plastics, it offers better weathering characteristics.

Clarity, brightness, and transparency are characteristics of acrylic sheet that are similar to those of glass, yet it is half as heavy and has many times the impact resistance of glass.

Acrylic plastics offer exceptional versatility, durability, and aesthetic attributes for everything from sturdy signs and skylights to eye-catching retail store fixtures, displays, and shelves.

A practical, transparent substance that resembles glass, acrylic plastic, sometimes called plexiglass, has superior transparency and weighs 50% less than glass of an equivalent thickness. One of the clearest materials is acrylic.

Learn more about  plastics here:

brainly.com/question/8647954

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6 0
1 year ago
Santana Mortgage company uses a process cost system to accumulate costs in its application department. When an application is co
baherus [9]

Answer:

Explanation:

opening wip                 100

Started                         1000

                                      1100

completed                   -800

closing wip                   300

Using weighted Average process cost Table

cost         opening      current     Total      complete   Wip   equivalent   Cost

head                                              cost                                        Units       p.unit  

material    1000           4500        5500        800         300        1100            5

CC            3960           21520      25480       800         180          980          26

                                                     30980                                                        31

A) equivalent units of service (production ) for materials and conversion costs.

material                1100

CC                         980

B)

unit costs

material                5

CC                        26

                            31  

Complete  800   31.00   24,800  

   

Closing Wip    

   

Material         300   5.00     1,500  

Labour          180   26.00     4,680  

                                     6,180  

   

Total Cost                     30,980  

7 0
3 years ago
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