Answer:
The answer to the following question is attached within a word file.
Answer:
1. After the split, how many shares of common stock are outstanding and what is their par value per share?
40,000 stocks outstanding x 2 = 80,000 stocks outstanding after the stock split
par value of each stock = $2 / 2 = $1
Aren't both questions the same?
2. After the split, the number of shares outstanding is <u>80,000</u> and the par value per share is <u>$1</u>.
Explanation:
When a stock split happens, the total number of outstanding stock is just multiplied by the stock split factor, in this case it was 2, but other times it might be 4 or 7 (like Apple stock). You just multiply total outstanding stock by the split number. On the other hand, par value is calculated by dividing the current par value by the split number.
Answer:
(a) 0.7
(b) 3.33
(c) -$210
(d) -$147
(e) -$1 trillion
Explanation:
(a) Marginal propensity to consume (MPC) = 0.7
(b) Multiplier of this economy:
= 3.33
(c) Decrease government purchases by $300 billion,
Initial change in consumption = Change in government purchases × MPC
= $300 × 0.7
= -$210 billion
(d) This decreases income yet again, causing a second change in consumption equal to:
= Initial change in consumption × MPC
= -$210 × 0.7
= -$147 billion
(e) The total change in demand resulting from the initial change in government spending is:
= Change in government purchases × Multiplier
= $300 × 3.33
= -$1 trillion
Answer:
a. $11,760.
Explanation:
Straight line depreciation expense = (Cost of asset - Salvage value) / useful life
Cost of asset = $60,000 + $8,000 + $2,800 = $70,800
($78,800 - $12,000) / 5 = $11,760.
I hope my answer helps you
Answer:
$88,000
Explanation:
The computation of the ending balance of the retained earning balance is shown below:
As we know that
The ending balance of retained earning = Beginning balance of retained earnings + net income - dividend paid
where,
net income is
= Revenues - expenses
= $50,500 - $33,000
= $17,500
And, the other items values would remain the same
So, the ending balance is
= $92,500 + $17,500 - $22,000
= $88,000
