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Salsk061 [2.6K]
3 years ago
13

In September, Year 1, West Corp. made a dividend distribution of one right for each of its 120,000 shares ofoutstanding common s

tock. Each right was exercisable for the purchase of 1/100 of a share of West's $50variable rate preferred stock at an exercise price of $80 per share. On March 20, Year 5, none of the rightshad been exercised, and West redeemed them by paying each stockholder $0.10 per right. As a result of thisredemption, West's stockholders' equity was reduced by:a. $120b. $2,400c. $12,000d. $36,000
Business
1 answer:
Sphinxa [80]3 years ago
8 0

Answer:

The correct answer is option C.

Explanation:

Dividend distribution in the first year = 120,000 shares of outstanding common stock

Each right was exercisable.

Though none of the rights have been exercised.

The shares have been redeemed by paying each stockholder=$0.10/right

Reduction in the West's stockholder's equity

=Number of shares*amount paid for redemption

=120,000*$.10

=$12,000

So, option C is the right answer.

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A news article details the destruction of a recent earthquake. Which of the following are readers of the article likely to do as
elena55 [62]

A news article details the destruction of a recent earthquake. Readers of the article likely to do as result are Overestimate their risk of earthquakes. Thus option A is correct.

<h3>What is Earthquake?</h3>

Earthquakes is referring to a kind of natural disaters which occurs due to the movement of tectonic plates. when these tectonic plates move and collapse with one another results in an earthquake.

When a news article shows destruction related to earthquakes people will most likely analyze their risk from earthquakes and evaluate whether they are safe from them or not.

Therefore, option A is appropriate.

Learn more about Earthquakes, here:

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7 0
2 years ago
Marlow Company purchased a point of sale system on January 1 for $5,800. This system has a useful life of 5 years and a salvage
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Answer: $1392

Explanation:

The depreciation rate under straight line is =1/5=0.2

The depreciation rate under double declining is = 0.2 × 2 = 0.4

Depreciation expense for the first year = 0.4 × $5800 = $2320.

At the beginning of year two, net book value = $5800 - $2320 = $3480

Depreciation expense for year two = 0.4 × $3480 = $1392

7 0
3 years ago
Many restaurants offer daily specials, appetizers, entrees, and desserts not listed on their standard menu. These daily specials
stiv31 [10]

Answer:

B) satisfying the changing needs of current and new customers.

Explanation:

When a restaurant wants to introduce a new dish, it's best to test the market response to the dish before listing it on the standard menu. A type of test would be offering the dish only in special occasions, when sales are higher, and more potential customers visit the restaurant.

Another way is to simply offer the dish in a normal weekday, and see how people respond to it under regular conditions.

8 0
4 years ago
Sunk costs and decision making Rajiv has plans to go to a play and already has a $50 nonrefundable, nonexchangeable, and nontran
NikAS [45]

Answer: b.Correctly ignored a sunk cost

Explanation:

Sunk costs are those that are already incurred and should not have any influence on the decision to be made.

The cost of the ticket to the play has already been incurred and could not be sold, exchanged or transferred so was a sunk cost. By going to the concert with Simone, Ravi decided to ignore a sunk cost and he was correct to do so.

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3 years ago
Section 2: Adapting to Changes
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Answer:

6

Explanation:

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3 years ago
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