Answer:
The $150 million cash received is for a new issue of 5 million common stock Explanation:
The number of shares issue =amount credited to common stock/par value of share
amounted credited to common stock is $100 million
par value of share is $20
the number shares issued =$100,000,000/$20
=5,000,000 shares
premium amount per share =excess paid-in capital.number of shares issued
excess paid-in capital is $50 million
premium amount per share=$50,000,000/5,000,000
=$10 per share
All in all, the $150 million cash received is for a new issue of 5 million common stock
Answer:
a. 0.60
Explanation:
The formula to compute the price elasticity of supply using the midpoint formula is shown below:
= (change in quantity supplied ÷ average of quantity supplied) ÷ (percentage change in price ÷ average of price)
where,
Change in quantity supplied is
= Q2 - Q1
= 30 - 20
= 10
And, average of quantity supplied is
= (30 + 20) ÷ 2
= 25
Change in price is
= P2 - P1
= $20 - $10
= $10
And, average of price is
= ($20 + $10) ÷ 2
= 15
So, after solving this, the price elasticity of supply is 0.60
Answer:
$5,600
Explanation:
Data provided in the question:
Number of units of inventory sold = 400 units
Selling cost of the inventory = $40 each
Original cost of the inventory = $26 each
Now,
Total inventory cost of the units sold = 400 × $26
= $10,400
Total selling cost of the inventory sold = 400 × $40
= $16,000
Therefore,
Elenor’s gross profit on this transaction
= Total selling cost of the inventory sold - Total inventory cost of the units sold
= $16,000 - $10,400
= $5,600
Answer:
Companies must be prepared at all times to add to or adapt their product lines to satisfy the desires of customers for them to remain competitive.
Explanation:
One of the strategies companies to remain competitive is to adjust to the demand of customers. This will allow a company to retain current customers and win potential new customers.
Although this strategy may require additional fund but failure to adapt and add new product lines that satisfy wants of the customers can the company out of business.
Therefore, companies must be prepared to add to or adapt their product lines to satisfy customers' desires in order to remain competitive.
Answer:
Explanation:
Using YTM formula :
YTM = [PMT + {(FV-P) / n}] / [(FV+P)/2]
YTM = Yield to maturity = 14% = 0.14
PMT= Annual interest amount
FV = Face Value = $1000
P = Price =$1158.91
n = years to maturity = 10
0.14 = [PMT + {(1000 -1158.91) / 10}] / [(1000 +1158.91)/2]
0.14 = (PMT - 15.891) / 1079.455
PMT- 15.891 = 1079.455 * 0.14
PMT - 15.891 = 151.1237
PMT = 151.1237 -15.891
PMT = 135.23
So, Annual interest = $135.23
Annual interest rate = Annual interest / Face Value
= 135.23 / 1000
= 0.1352
=13.52%
Hence Annual Interest rate on the bond is 13.52%