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Lelu [443]
3 years ago
14

Testbank Multiple Choice Question 73 Sheffield Corp. issued 10200 shares of its $5 par value common stock having a fair value of

$25 per share and 14000 shares of its $10 par value preferred stock having a fair value of $25 per share for a lump sum of $529000. How much of the proceeds would be allocated to the common stock
Business
1 answer:
Misha Larkins [42]3 years ago
3 0

Answer:

$222,967

Explanation:

Calculation of How much of the proceeds would be allocated to the common stock

First step

[(10,200 shares× $25 per share Fair value )÷

(10,200 shares × $25 per share Fair value+14,000 shares×$25 per share Fair value)]×$529,000

Second Step

($255,000÷$255,000+$350,000)× $529,000

Third step

($255,000÷$605,000)×$529,000

Fourth step

0.421487×529,000

=$222,967

Therefore the amount of the proceeds that would be allocated to the common stock will be $222,967.

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3 years ago
the total estimated cost of attending a public year to year college is 2265. The cost of attending a college is expected to incr
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5% of 2265$ is 113,25$
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3 years ago
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3 years ago
A demand function for step stools manufactured by U-Step is q = -720p + 20,500.
meriva

Answer:

$140,420

Explanation:

The demand function is q = -720p + 20,500.

The price is $17

q = -720 ($17) + 20500 = 8260

The quantity sold is 8260

Revenue = price × quantity sold

= $17 × 8260 = $140,420

5 0
3 years ago
You are considering the purchase of an office building for $1.5 million today. Your expectations include the following: first-ye
ddd [48]

Answer:

$289000

Explanation:

Effective Gross Income (EGI): Effective Gross Income is calculated by deducting the Vacancy and collection (V&C) loss from Gross Potential Income (GPI).

First year gross potential income (PGI) is $340,000

Vacancy and collection (V&C) loss is 15% of gross potential income

Therefore, (V&C) allowance = [$340,000 15%]

= $51,000

Calculate Effective Gross Income (EGI) for the first year of operations:

Item

Amount

Potential gross income (PGI)

$340,000

Less: V&C allowance (at 15% of PGI)

($51,000)

Effective Gross Income ( EGI )

$289,000

Hence the EGI is $289,000

7 0
4 years ago
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