Answer:
Explanation:
Since in the question the shares are repurchased which impact the accounting equation in a negative manner
Accounting equation would be
Total assets = Total liabilities + Stockholder equity
The assets are decreased as it reduces the balance of cash account as well as it reduced the stockholder equity also by the same amount
Answer:
a. demand for existing shares of the stock and the price will both fall.
Explanation:
The stock price is formed by the interaction of supply and demand of companies's shares and when a news like this is released is expected that the future cashflows of that company will drop. Being share buyers rational actors, the demand for the company's shares will drop, therefore the price of the company will drop as well.
Answer:
$1618.62
Explanation:
The formula for calculating future value :
FV = P (1 + r/m)^nm
FV = Future value
P = Present value
R = interest rate
N = number of years
M = number of compounding = 12
$1,200(1 + 0.06 / 12 )^60 = $1618.62
I hope my answer helps you
No, you do not have to own stocks yourself to be impacted by the change of the markets. Anybody who owns stocks AND run businesses that YOU go too will impact YOU dramatically. If stock prices drop, the amount of money they have will drop considerably, which means they have less money for merchandise. If they don't have merchandise, the businesses will go out, and you will not have anyplace to go too for your needs (for food, medicine, etc)
hope this helps
Answer:
cash and supplies accounts but that is not an option
Explanation: