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lubasha [3.4K]
3 years ago
6

ACME Confetti Corporation needs to finance $20 million for a plant expansion building project. They've decided to issue common s

tocks to finance the entire project. How many shares do they need to issue to cover the cost of the project plus all floatation costs (7% of issue price). ASSUMPTION: Issue price is $50 per share. Assets can cover the value of the share price and floatation costs.
a. 379, 940
b. 465,000
c. 430, 108
d. 383, 652
Business
1 answer:
Law Incorporation [45]3 years ago
6 0

Answer:

Option (C) is correct.

Explanation:

The required proceeds:

= Amount need to be finance ÷ (1 - 7%)

= $20 million ÷ (1 - 0.07)

= $215,05,376.34 (approx)

Hence, the number of shares needed to be issued:

= required proceeds ÷ Issue price per share

= $215,05,376.34 ÷ $50 per share

= 430,108 shares (approx)

Therefore, 430,108 shares they need to issue to cover the cost of the project plus all floatation costs.

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The following situations suggest a strength or a weakness in internal control. Identify each as a strength or weakness​, and giv
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Answer: Options A and C are strengths while options B and D are weaknesses. See explanation below.

Explanation:

a. All employees must take at least five consecutive days off each year.

This is a strength in internal control. This would help to maintain stability in operational process and ensure leave days are effectively utilized. It also prevents staff from taking the leave days in piecemeal and sporadic manner thereby disrupting the operational process and causing team instability. It is also used to ensure leave days are promptly utilised and well accounted for.

b. The accounting department orders merchandise and approves invoices for payment.

This is a weakness in internal control. There should be a check and balance in this regard. In some organizations, proper scrutiny of the vendor and invoice is done by the Procurement Unit and the Expense Control Unit respectively. Even within the accounting department, there is approval hierarchy. Also, the unit within accounting department that is making the order should not be the one to approve the transaction.

c. Cash received over the counter is controlled by the sales​ clerk, who rings up the sale and places the cash in the register. The daily sales are recorded in the accounting records by the accounting department.

This is a strength in internal control as it ensures checks and balances. Fraud and error can be detected through this means. The accounting department should verify the transactions to the relevant supporting document before recording the transaction in the system.

d. The officer who signs checks need not examine the payment packet because he is confident the amounts are correct.

This is a weakness in internal control in the sense that checks signed by the officer is binding in the court of law. The officer cannot claim ignorance if anything goes wrong. There is therefore a need for proper scrutiny and relevant questions asked before checks are signed.

7 0
3 years ago
This is a partial adjusted trial balance of Wildhorse Co.. WILDHORSE CO. Adjusted Trial Balance January 31, 2022 Debit Credit Su
Dominik [7]

Answer:

The entries are made as follows;

Explanation:

Service Revenue             Dr.$4,350

Income Summary            Cr.$4,350

(To close revenue account)

Income Summary

Supplies expense         Dr.$910

Insurance Expense       Dr.$540

Salaries and Wages Expense Dr.$1,770

Income Summary                                         Cr.$3,220

(To close expenses)

Income Summary (4,350-3,220)   Dr.$1,130

Retained Earnings                         Cr.$1,130

7 0
3 years ago
Alexis, a minor acting on her own, signs a contract to buy a motorcycle and accessories from Bad Bikes dealership. Later, after
Dmitriy789 [7]

Answer:

b. ​can keep the accessories but not the motorcycle.

Explanation:

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2 years ago
The calculation of WACC involves calculating the weighted average of the required rates of return on debt, preferred stock, and
FinnZ [79.3K]

Answer:

37.88 %

Explanation:

The weight on preferred stock mean, what percentage out of the Total Market Value of the Sources of Capital pooled together is taken by Preferred Stock.

Weight on preferred stock = Market Value of Preferred Stock / Total Market Value of Sources of Capital x 100

where,

Market Value of Preferred Stock = $2.5 million

and

Total Market Value of Sources of Capital :

Debt                            $2.3 million

Preferred Stock         $2.5 million

Common Equity          $1.8 million

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therefore,

Weight on preferred stock = $2.5 million / $6.6 million x 100 = 37.88 %

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A formal written document that describes the nature of a business and how it will operate.
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A business's business plan is a formal written document that outlines the nature of the business and how it will function.

A strategic document that encapsulates your plans for your company is the business plan. It enables you to assess whether your ideas are feasible and whether there is a demand for your goods or services.

Summary/Overview is the main section of the business plan.

A succinct but clear argument (a few phrases or paragraphs) outlining why the company will succeed. The Business Plan's most crucial component since it ties everything together.

<h3>What constitutes a business plan's 7 components?</h3>

Here is a list of the seven key elements of a business plan and what it should contain, despite the fact that plans vary as much as enterprises do.

Brief summary.

Business Description.

Services and goods.

Market research.

Organizing and Executing Out

Business and its management team.

A plan and estimated costs.

To learn more about Business plan, visit:

brainly.com/question/8119526

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1 year ago
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