In a 2 for 1 stock split, par
value and market value will be 1/2 of what they were prior to the split and
number of shares will be two times what it was.
So,
par value will be 6 x 0.5 = $
3.00
market value will be 25 x 0.5
= $ 12.50
number of shares 8,000 x 2 will be
16,000 shares
Answer:
Issuing convertible bonds
Explanation:
Convertible bonds are corporate bonds that can be exchanged for common stock in the issuing company. Companies issue convertible bonds to lower the coupon rate on debt and to delay dilution. A bond's conversion ratio determines how many shares an investor will get for it.
Answer:
The owner's equity amounts to $1,040,000
Explanation:
The formula to compute the owner's equity is as:
Owner's equity = Assets - Liabilities
Where
Assets = Land + Machinery + Cash
= $1,500,000 + $30,000 + $10,000
= $1,500,000 + $40,000
= $1,540,000
Liabilities = Loan
= $500,000
Putting the values above in the formula:
= $1,540,000 - $500,000
= $1,040,000
Answer:
a. Accounting.
b. Certified public accountants.
c. Creditor.
d. Managerial accounting.
e. Certified management accountants.
f. Financial accounting.
Explanation:
1. <u>Accounting</u>: information system that measures business activities, processes that information into reports, and communicates the results to decision makers.
2. <u>Certified public accountants</u>: professional accountants who serve the general public.
3. <u>Creditor</u>: person or business to whom a business owes money.
4. <u>Managerial accounting</u>: field of accounting that focuses on providing information for internal decision makers.
5. <u>Certified management accountants</u>: professionals who work for a single company.
6. <u>Financial accounting</u>: field of accounting that focuses on providing information for external decision makers.