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kirza4 [7]
3 years ago
11

The common stock of Alexander Hamilton Inc. is currently selling at $120 per share. The directors wish to reduce the share price

and increase share volume prior to a new issue. The per share par value is $10; book value is $70 per share. 9 million shares are issued and outstanding. Instructions Prepare the necessary journal entries assuming the following. The board votes a 2-for-l stock split. The board votes a 100% stock dividend. Briefly discuss the accounting and securities market differences between these two methods of increasing the number of shares outstanding.

Business
1 answer:
Pachacha [2.7K]3 years ago
5 0

Answer:

No Entry is required for a stock split

Retained Earnings 90,000,000

Common Stock Dividend Distributable 90,000,000

(to record the declaration)

Common Stock Dividend Distributable 90,000,000

Common Stock 90,000,000

(to record the distribution)

Explanation:

see the attached file

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Sue, a secretary goes to the storeroom to get a box of paper for her department. This is a task she's performed without problem
just olya [345]

Answer:

B. Sue is entitled to Workers' Compensation even though her employer was not negligent.

Explanation:

Sue is performing her normal duties that is required by her being a secretary when she was injured. So the employer cannot be said to be negligent in allowing her carry paper for her unit.

She will not be able to sue for employer for her injuries.

However when an employee is injured they are entitled to Worker's compensation and paid time off work.

This is given to employees even when the employer is not negligent.

Sue can get the Worker's compensation for her back treatment.

7 0
3 years ago
Suppose the U.S. yield curve is flat at 4% and the euro yield curve is flat at 3%. The current exchange rate is $1.50 per euro.
lianna [129]

Answer:

$4.24287 million per year

Explanation:

Missing question:  The swap will call for the exchange of 1 million euros for a given number of dollars in each year.

For structured three separate forward contracts of the exchange of currencies, the forward price could be found as follows

Forward exchange rate * $1 million error = Dollar to be received

Year 1 = 1.50*(1.04/1.03) * 1 million euros

Year 1 =  1.514563106796117 * 1 million euros

Year 1 =    $1.5145 million

Year 2 = 1.50*(1.04/1.03)^2 * 1 million euros

Year 2 = 1.529267602978604 * 1 million euros

Year 2 = $1.5293 million

Year 3 = 1.50*(1.04/1.03)^3 * 1 million euros

Year 3 = $1.5441 million

The number of dollars each year is determined by computing the present value:

= 1.5145 / 1.04 + 1.5293 /(1.04)^2 +1.5441 / (1.04)^3

= 1.45625 + 1.41392 + 1.3727

= $4.24287 million per year

3 0
3 years ago
Repurchase by the company of its own common stock $ 41,000 Sale of long-term investment $ 60,000 Interest paid to lenders $ 15,5
EleoNora [17]

Answer:

The net cash provided by investing activities on the statement of cash flows will be $106,000

Explanation:

Investing activities include all the cash transactions incurred for the fixed asset of the company.

The net cash provided by (used in) investing activities can be calculated as follows

Net cash provided by (used in) investing activities = Sale of long-term investment + Collection by McCorey of a loan made to another company

Where

Sale of long-term investment = $60,000 ( Cash inflow )

Collection by McCorey of a loan made to another company = $46,000 ( Cash Inflow )

Placing values in the fomrula

Net cash provided by investing activities = $60,000 + $46,000 = $106,000

6 0
3 years ago
According to the basic principles of economics, how will the birthrate be affected by policies that reduce the taxes imposed on
labwork [276]

Answer:

This policy will lead to increase in birthrate.

Explanation:

Taxes imposed on individuals with children will be helpful in reducing birthrate, thus, curbing population growth. This is because taxes reduce the disposable income of the individuals. So people will prefer not to have children to earn a higher income.  

When this tax is reduced through some policy, the disposable income of the people would increase. So people now would be able to afford to have children. This will lead to an increase in birth rate and thus population growth.

7 0
3 years ago
According to MM proposition II, as debt increases. the firm's return on assets remains constant even while its return on equity
MissTica

Answer:

<u>decreases</u>

Explanation:

As per modigliani- miller approach, the value of a firm is not dependent upon the choice of capital structure of the firm.

Capital structure refers to the the blend or mix of different sources of capital a firm avails to raise funds. Such as debt and equity.

As per MM proposition 2, the expected yield of a stock is equal to equity capitalization rate plus an additional compensation for risk assumed by employment of debt in the capital structure due to which the debt-equity ratio rises.

As proportion of debt is increased in the capital structure, the earnings available to stockholders rise but this rise is offset by the rise in the expectation of shareholders which offsets the effect and thus value of firm remains the same.

Return on equity is given by  \frac{net\ income}{stockholders\ equity}

Thus, as the return on equity increases , the amount of equity in capital structure decreases as this net income rises owing to employment of more and more debt in the capital structure.

4 0
3 years ago
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