Answer:
Paid in capital treasury stock = $1,600
Explanation:
Paid in capital treasury stock = (Market value - purchase value) × Number of share reissued.
Given,
Reacquired treasury stock = 2000 shares
As the shares were reacquired for $20,
Reacquired total treasury stock = 2,000 shares × $20 = $40,000
Reissued number of shares = 800
Market price of those treasury stock is $22 per share.
Therefore, paid in capital - treasury stock = $(22 - 20) × 800 shares
Paid in capital - treasury stock = $1,600
According to the theory of liquidity preference, the opportunity cost of holding money is the interest rate.
Liquidity Preference Theory is a model that means that an investor should demand a better rate of interest or premium on securities with long-term maturities that carry larger risk as a result of, all alternative factors being equal, investors like money or alternative extremely liquid holdings.
The opportunity cost of holding money is that the rate of interest forgone on various assets, that we are able to lump along generically and decision “bonds.” The opportunity cost of holding money is that the nominal rate of interest, not the real rate of interest.
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Answer:
The total return in % terms is 7.5% while it is $0.75 in dollar terms
Explanation:
Total return =NAV1-NAV0+Dividends+Capital gains/NAV0
NAV1 is the closing NAV at $9.50
NAV0 is the opening NAV at $10
Dividends is $0.50
capital gains is $0.75
Total return=($9.50-$10.00+$0.50+$0.75)/$10.00
Total return is 7.50%
Total return in dollar terms =($9.50-$10.00+$0.50+$0.75)
=$0.75
The total return in % terms is 7.5% while it is $0.75 in dollar terms
The return is made of increase or decrease of NAV itself plus dividends and capital gains in share price.
Answer:
The correct answer is b. The auditors’ actual state of mind and unbiased mental attitude.
Explanation:
Independence warns a mental attitude that allows to express a conclusion without influences that compromise professional judgment, allowing an auditor to act with integrity, objectivity and professional skepticism. In addition, it requires apparent independence, avoiding facts and circumstances that are so relevant that a third party with judgment and knowledgeable, appreciating all the specific facts and circumstances, will probably conclude that the integrity, objectivity or professional or skepticism of the team member Audit have been compromised.
The IFAC conceptual framework is applied in order to identify threats such as: self-interest, self-review, advocacy, familiarity and intimidation in relation to independence, assess the importance of the threats that have been identified and whether It is necessary to apply safeguards instituted by the profession or by legal provisions or safeguards in the work environment to eliminate or reduce them to an acceptable level, if it is not possible to minimize the origin of these threats, the professional can terminate the audit assignment.