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Y_Kistochka [10]
3 years ago
7

Montgomery & Co., a well-established law firm, provided 500 hours of its time to Fink Corporation in exchange for 1,000 shar

es of Fink's $5 par common stock. Montgomery's usual billing rate is $700 per hour, and Fink's stock has a book value of $250 per share. By what amount will Fink's paid-in capital—excess of par increase for this transaction?
A) $345,000

B) $295,000

C) $350,000

D) $300,000
Business
1 answer:
Maksim231197 [3]3 years ago
5 0

Answer:

A) $345,000

Explanation:

Total Value of services provided = 500*700

                                                       = $350,000

Common stock = 1000*5

                          = $5,000

Excess amount attributable to paid-in capital—excess of par

= $350,000 - $5,000

= $345,000

Therefore, The amount will Fink's paid-in capital—excess of par increase for this transaction is $345,000.

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The stock of Canadian Ski Wear is currently trading at $45 a share and the company is expected to pay a dividend of $1.50 a shar
Triss [41]

Answer:

The expected return on the company common stock is 4,03%

Explanation:  

We can use the dividend growth model to determine the expected return on the company's common stock.

The formula is as follows P = D^{1} / ( k - g )

Where P = fair price of share ( current share price )

g = dividend growth rate (4%)

k = required rate of return

D = dividend expected in the following year ($1,50)

We need to solve for k and rearrange the formula to solve for K.

k  = D/p + g

k = 4,03%

If we substitute K into the original formula we also end up with P = 45 which is the current share price.

5 0
4 years ago
Apple is constantly striving to introduce new products into the marketplace. At the initial stage, Apple design teams are separa
Leviafan [203]

Answer:

Idea generation.

Explanation:

The new product development process is a process of taking a product to the market. It is a part of product design. The process continues till the life cycle of product is over.

There are several stages of the new product development.

The stage in which the Apple company is, in the given scenario, is idea generation.

Idea generation is the first stage of the new product development. In this stage, the company seeks for ideas for creating or developing new products.

Therefore, idea generation is the correct answer.

5 0
3 years ago
When a commercial for men's razor blades demonstrate how the blades work to create the closest shave, the brand is using a _____
Ivenika [448]

Answer:

a) Informational

Explanation:

The company is using informational appeal in its advertisement to convince the buyers that they need the product and shows how it works. . This type of appeal informs customers of the features, quality and benefits of a product. The demonstration of how the blades work helps the potential customers to make a rational decision as it it portrays that the blades' function of the providing the closest shave is what they need.

4 0
3 years ago
econ One year a country has negative net exports. The next year it still has negative net exports and imports have risen more th
Vesnalui [34]

Answer:

its trade deficit rose

Explanation:

Trade deficit occurs when the imports of a country are higher than the exports. It is called the trade deficit. It means the country is importing more value of goods from other countries and exporting less. When Imports grows higher than the growth in exports, the trade deficit eventually rises.

8 0
3 years ago
A company produces 3 products that use labor and raw material. The labor usage, raw material usage, and profit per pound produce
Gekata [30.6K]

Answer:

sea 100% la materia prima disponible

si consume el 40% lo que le queda es 60%

60% < > 40% + 57

20% < > 57

si el 20% es 57 el 100% es 57 x 5 = 285kg

Explanation:

8 0
3 years ago
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