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3 years ago

The preemptive right

Business

1 answer:

nika2105 [10]3 years ago

6 0

Answer:

The correct answer to the following question will be Option A.

Explanation:

A shareholder's right and opportunity in such a company to get the first possibility to buy a current concept of this kind of business's stock concerning the number of inventory the shareholder previously holds termed as a Preemptive right.
It offers the existing shareholders an opportunity to purchase the fresh shares whenever the company issues extra capital to just not dilute current ownership.

Other choices have no relation to the given situation. So choice A is the correct answer to that.

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Cost of merchandise sold reported on the income statement was $155,000. The accounts payable balance increased $8,000, and the i

RideAnS [48]

Answer:

Cash paid 168,000

Explanation:

Assuming that there were no inventory at start of the year

purchases during the year :

Sold = 155

Closing inventory = 21

Total purchase (155+21) = 176

Cash paid for merchandise = total purchase - increase in liability

Cash paid = 176-8 = 168

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3 years ago

when it comes to distribution, what is the least expensive route when getting the product from manufacturer or farmer to the ult

jonny [76]

<h2>The least expensive route is to use "Direct distribution Channel"</h2>

Explanation:

There are two modes where a manufacturer or farmer can reach the product to the customer.

1. Direct channel: This enables the customer to directly buy from the manufacturers.

Example: Online purchase. In this the customer has direct access to the product and orders online. The manufacture has to find a source to deliver the goods to the customer.

Manufacturer should have warehouses, shipping centers, etc to deliver the product.

2. Indirect channel: Relies mainly on intermediaries to perform product distribution to the customers. This includes dealer, sub-dealer and many other to reach the product to the customer.

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3 years ago

What is the main purpose of the FDIC?

viva [34]

Answer:

To insure bank deposits.

Explanation:

After the great depression the FDIC was created to insurance bank deposits and to give stability and security to the financial system

4 0

3 years ago

Read 2 more answers

A bond with a $1,000 par value sells for $895. The coupon rate is 7%, the bonds mature in 20 years, and coupon interest is paid

LuckyWell [14K]

Answer:

After tax cost of debt is 5.239%

Explanation:

Given:

Face value = $1,000

Bond price = $895

Coupon payments = 0.035×1,000 = $35 (coupon payment is paid semi-annually so 7% is divided by 2)

Maturity = 20×2 = 40 periods

Using bond price formula:

Bond price = Present value of face value + present value of coupon payments

Use excel function =RATE(nper,pmt,PV,FV) to calculate cost of debt.

substituting the values:

=RATE(40,35,-895,1000)

we get Pre-Tax cost of debt = 4.03% semi- annual

Annual rate is 4.03%×2 = 8.06%

Note: PV is negative as bond price is cash outflow.

After tax cost of debt = 8.06(1 - 0.35)

= 5.239%

3 0

4 years ago

Star Jewelry sells 500 units resulting in $75,000 of sales revenue, $28,000 of variable costs, and $18,000 of fixed costs. The n

antoniya [11.8K]

The <u>number of units</u> that must be sold to achieve $40,000 of operating income is 617 units.

<h3>What is break-even analysis?</h3>

Break-even analysis is an accounting concept that can be used to determine the <u>number of units</u> that must be sold to achieve $40,000 of operating income. This can be computed by using the concept of break-even analysis as follows:

<h3>Data and Calculations:</h3>

Sales units = 500 units

Sales revenue = $75,000

Selling price per unit = $150 ($75,000/500)

Variable costs = $28,000

Variable cost per unit = $56 ($28,000/500)

Contribution margin per unit = $94 ($150 - $56)

Fixed costs = $18,000

Target operating income = $40,000

Break-even point in units to achieve target profit = 617 units ($18,000 + $40,000)/$94

Thus, the <u>number of units</u> that must be sold to achieve $40,000 of operating income is 617 units.

Learn more about break-even analysis at brainly.com/question/21137380

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3 years ago