Answer:
Value of one right = $2.63
Explanation:
<em>A right issue is the issue of additional new shares to existing shareholders in proportion to their existing shareholdings at a price less than the current market price.</em>
<em>The value of rights is the difference between the theoretical ex-right price and the right price . </em>
Value of rights= Theoretical ex-right price - Right price
<em>The theoretical ex-right price is the price at which a share is expected to settle after the right issue assuming all the rights are taken</em>
Theoretical ex-rights price = Total value of shares after right issue/Number of shares after right issues
<em />
1 unit of old share at $25.25 = $25.25
I unit of right share at $20.00= <u>$20.00</u>
Total value of 2 shares <u>$ 45.25</u>
Theoretical ex-rights price = 45.25/2 =$22.63
Theoretical ex-rights price=$22.63
Value of rights= Theoretical ex-right price - Right price
= 22.63 - 20.00
Value of one right = $2.63
Answer: compare his turnover ratio to other grocery stores' ratios.
Explanation: The manager should "compare his turnover ratio to other grocery stores' ratios" since Humongous Food Store (HFS) is losing money but have a turnover ratio of 12.
A turnover ratio of 12 means that they sold everything in the store once per month. Turnover ratio is the percentage of mural fund or portfolio holdings that have been replaced in a given year or 12 months period.
Answer:
Dr Cash $1,500
Cr Account Receivable $1,500
Explanation:
Based on the information given we were told that Adriana receives the amount of $1,500 from a client that was billed in a previous month for services provided which therefore means that the appropriate general journal entries that Adriana Graphic Design will make to record this transaction is:
Dr Cash $1,500
Cr Account Receivable $1,500
Answer:
both existing customers who now get lower prices on the gowns they were already planning to purchase and new customers who enter the market because of the lower prices.
Explanation:
Consumer surplus is the difference between the willingness to pay of a consumer and the price of the good.
Consumer surplus = willingness to pay – price of the good
Let assume that the price before the sale and after the sale is $1000 and $800. The willingness to pay of customer A is $1500 and for customer b is $900
consumer surplus of customer A before sale = 1500 - 1000 = 500
consumer surplus of customer A after sale = 1500 - 800 = 700
consumer surplus of customer B before sale = 0
consumer surplus of customer B after sale = 900 - 800 = 100
consumer surplus of both customers increase
Answer:
$ 62,500
Explanation:
1. calculating weekly revenue: 85 clientX25 dollars
85x25=2,125.00
2. Annual income: 2, 125x52=110,500 dollars.
3. Annual expenses: =48,000 dollars
4. Annual revenue: revenue - expenses=62,500.00
Annual income dollars: 62,500.00
