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Sergeeva-Olga [200]
3 years ago
7

Merith Qin, a textile company, relies on self-funding in order to sustain the promotion of its new product in the market. The co

mpany sold its newly issued stock and was able to a mass a sizable amount of money to invest. What sources of long-term funds is being used by Merith Qin in the given scenario
Business
1 answer:
Sophie [7]3 years ago
7 0

Answer:

Direct Investments from Owners

Explanation:

Self funding refers to a corporate's financing it's projects by use of it's own funds in the form of retained profits or raising money internally i.e from existing shareholders.

Issue of stock is one of the modes of raising long term finance by a corporate. The other forms being debt, preference stock or deposits. Long term finance refers to money required to finance big projects requiring heavy investments and spread over a long period of time say 5 to 10 years.

In the given case, the company sold it's newly issued stock and amassed a considerable amount of money. In this case, the stock must've been issued to existing stockholders and thus money raised from existing owners.

Hence this source of raising long term finance is direct Investment from owners i.e stockholders.

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Why do some workers lose their job when the minimum wage is​ increased?
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The company can't afford to pay their employees. If you have 100$ you can have ten people working for 10$ an hour and pay everyone for one hour. You can't have 10 people getting paid 20$ because the company would lose money. So if they are paid 20$ per hour, the company can only afford to hire 5 employees. 
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3 years ago
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Your sister just deposited $14,000 into an investment account. She believes that she will earn an annual return of 10.5 percent
Ilia_Sergeevich [38]

Answer:

You must deposit $14,824.07

Explanation:

Giving the following information:

Sister:

Investment= $14,000

Interest rate= 10.5%

Number of years= 9

You:

Investment=?

Interest rate= 9.8%

Number of years= 9

First, we need to calculate the future value of your sister:

FV= PV*(1+i)^n

FV= 14,000*(1.105^9)= $34,386.55

Now, we can determine your deposit:

PV= FV/(1+i)^n

PV= 34,386.55/ (1.098^9)= $14,824.07

3 0
3 years ago
A customer holds 100 shares of ABC Corp $100 par convertible preferred stock convertible at a 10 to 1 ratio. If ABC declares and
Leviafan [203]

Answer:

B. 100 shares of ABC preferred stock

Explanation:

Shares are ownership stakes of a company that are given out to individuals who contribute to capital base of a company.

Preference shares are those whose owners recieve preference in payment of dividends, a fixed dividend is paid to them.

Ordinary shares recieve less preference when dividend is paid, usually coming last in divedend payment.

In this scenario ABC has decided to pay 10% stock dividend. This will be paid to ordinary share holders.

So the person with 100 preference shares will have 100 preference shares

10% of par value of $100 is 0.1 * 100= $10

Number of shares are 100 so the value is now 100 * $10 = $1,000

Since the conversion rate of preference to ordinary shares is 10:1

Number of preference shares= 1,000 ÷ 10= 100 preference shares

5 0
3 years ago
The definition of input , out put and processing please
goldfiish [28.3K]

The best definitions of input, output and processing are as follows:

  • Input refers to the resources that are used up in production to create further value, finished goods, or more input for further processing.

  • Processing is the intervening activity that changes the input to output.

  • Output is the product of processing input or resources.  Output is typically the finished outcome from a processing activity.

<h3>What is the relationship between input, output, and processing?</h3>

Processing is at the center of input and output.  

Processing involves changing, manipulating, or transforming input resources into output or finished products.

Thus, the definitions of input, output and processing are as given above.

Learn more about input, output, and processing at brainly.com/question/25250720

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you work with a group of employee's who are in their early 20s. Which of the following methods of communication should you use t
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Please give the options in order for us to determine which is best.
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