Answer:
See below
Explanation:
<u>Common stock</u>
The equity holders have a right to vote on corporate policy. In the case of liquidation, common stockholders are last in line in the distribution of the company's assets.
<u> Preferred stock </u>
The equity holders are paid dividends at regular intervals. Preferred stockholders have a priority in dividends payments over common shares but have no voting rights.
<u>Retained earnings</u>
The profit is used in the business. Retained earnings are profits that a company's management opts to distribute to shareholders as dividends.
<u>Senior debt</u>
The lenders are always paid within a predetermined time. Senior debts are low risk as they are given priority over other debts in repayment.
<u>Subordinate debt</u>
The debt carries more risk and is not the first in line to be paid. In the event of liquidation, subordinate debts are considered last in order of payment.
The seven steps to achieving a sound financial reputation include:
1)
Analysis of cash flow –
Positive cash flow would mean having funds available for savings.
2)
Making a plan for retirement
goals and other special goals.
3)
Increase retirement savings
– This can be done by maximizing contributions in your retirement accounts or
catch-up with missed contributions.
4)
Reduce income tax. Consult
a tax professional to help you with your tax strategy.
5)
Keep pace with the current
inflation rate.
6)
Manage potential risks and
liabilities – Being covered with insurance can give you protection in times of
unexpected risks.
7)
Consult a financial advisor
to provide you with informed decisions.
Answer:
a. Determine the number of shares of stock that is outstanding
outstanding shares = 300,000 - 50,000 = 250,000 outstanding stocks
b. Determine the book value per share.
total stockholder equity = $700,000 + $1,550,000 = $2,250,000
book value per stock = $2,250,000 / 250,000 stocks = $9 per stock
c. Provide a rational explanation for the difference between the book value per share and the market value per share of EEl's common stock.
Several things might explain why the book value of a company differs from its market value: the company's operating model, e.g. Amazon's book value is much lower than its FMV, but the expected future profits of Amazon are huge. It also depends on the assets or liabilities that the company might have, e.g. if the company owns a lot of land or other fixed assets reported at cost which might be much lower than FMV. Other factors include the company's positive attributes, its industry, etc.
Explanation:
A interest rates is lower payments lower cost over all is lower based ion rate.<span />
Answer:
A, $12,000
Explanation:
Profit is the financial gain as a result of the difference between the selling price of a product and the cost/production cost of the product.
To calculate the profit from the sale of the bicycles, we use the formula
Profit = (marginal cost x quantity of bicycles) - Expenses.
we have,
Profit = ($200 x 100) - $8,000
Profit = $20,000 - $8,000
Profit = $12,000.
Cheers.