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Alexus [3.1K]
3 years ago
15

Samsonite has declared a 90% stock dividend. At the time of the declaration, Samsonite's stock was selling for $250 per share. I

f Samsonite's total market value remains unchanged by the stock dividend, then what will the new stock price be once the dividend has been enacted?
Business
1 answer:
NeTakaya3 years ago
4 0

Answer:

$131.58

Explanation:

The computation of the new stock price is shown below:

= Selling price of stock per share ÷ current number of shares

= $250 ÷ 1.90

= $131.58

Since the 90% dividend is declared. It means for each share 90% dividend is declared so after stock dividend, the number of shares would be

= 1 + 90%

= 1 + 0.9

= 1.9

We simply divide the selling price by the current number of shares

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The four underlying assumptions of generally accepted accounting principles are economic entity, monetary unit, periodicity, and
DerKrebs [107]

Answer:

1. Going concern

2. Economic entity

3. Monetary unit

4. Periodicitys

Explanation:

1. Since Jumbo's Restaurant is planning to close, the assumption of continuity (going concern) is no more applicable. This should be disclosed. Instead asset was still recorded at historical price which is misleading.

2. Gorloks Tax Services is an economic entity, and the property and assets of owners are not considered to be for the business. In this case the boat Sam bought was wrongly reported as an asset of the company.

3. Claim Jumpers when reporting the 5 trucks purchased must include a monetary value for them. The assumption of monetary unit states that all items reported on the balance sheet must be expressed in monetary terms.

4. Cobbler's Etc violated the assumption of periodicity which states the financial position of the business must be declared in a particular accounting period. Accounting period can monthly, quarterly, biannually, and yearly. The business should choose and accounting period and ensure financial position is reported for each of them. In this case financial reporting is not consistent with reporting happening after 14 months and before that 18 months.

6 0
3 years ago
A 25-year, $1,000 par value bond has an 8.5% annual payment coupon. The bond currently sells for $925. If the yield to maturity
ANEK [815]

Answer:

$930.11

Explanation:

We will first find the YTM

Par value 1000

Couple rate 8.50%

N 24

PV $925

PMT $85

FV $1000

We are going to use YTM to find the bonds price of 5 years .

Therefore:

Value in 5 years will be:

N 20

I/YR 9.28%

PMT 85%

FV $1,000

PV $930.116

7 0
3 years ago
Why are businesses working or failing in today's society?
Mumz [18]

Answer:

well in society today as corona virus grows so do prices which makes it harder for people to buy things they used to. Companies are starting to shut down do to people not being able to buy anything or not being able to afford things or the product is bad. Do to all of this companies are failing tho some are using this to their advantage and are thriving.

Explanation:

hope this helps

4 0
3 years ago
Sheila contracted her friend Susan to paint her house for $3,000. Sheila did this as a favor to Susan as Susan was unemployed. B
Ne4ueva [31]

Answer:

Sheila letting Susan keep $1,000 without holding her liable for not completing the job is an example of a WAIVER.

Explanation:

A waiver is a legal intention or demonstration of a party in a contract to voluntarily relinquish their rights or claims in a contract. This is done without holding the other party (especially when they default in meeting the terms of the contract) liable for damages.

The party that voluntarily relinquishes their rights will usually not pursue any legal action against the defaulting party.

Therefore the scenario above is an example of a waiver, since Sheila has decided not to enforce the contract and has also allowed Susan keep part of the money.

6 0
3 years ago
The Fremont Company uses the weighted-average method in its process costing system. The company recorded 42,500 equivalent units
Ierofanga [76]

Answer:

Satrted                     36000

Explanation:

opening units     =   9300

Satrted                     36000

                                45300

Transferred              38000

Closing                     7300

Here is the quation

Opning units+Started-Transferred =  Closing units

Now put the values in equation

9300+Started-38000=7300

Started+28700=7300

Transfer the -28700 to left of the equation and change the sign in + due to transfer

Started =7300+28700

Started =36000

8 0
3 years ago
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