Answer:
1. Equity reduces to $372,300
2. 11,517 shares
3. $32.33
Explanation:
1. Effect on Equity
The company will use $15,600 cash to buy the equivalent amount of shares.
Cash Balance will reduce by;
= 52,900 - 15,600
= $37,300
Equity will reduce by the amount of stock repurchased;
= 387,900 - 15,600
= $372,300
2. Shares Outstanding
Current Stock Price = 
= 387,900/12,000
= $32.33
Number of shares repurchased = 15,600/32.33
= 483 shares
New Shares Outstanding = 12,000 shares - 483 shares
= 11,517 shares
3. Price per share after repurchase
= 
= 372,300 / 11,517
= $32.33
4. Dividends declared reduces the equity value.
= 32.33 - 1.30
= $31.03
The share repurchase is the same as the cash dividend because the stock price after the repurchase is the same as the stock price if dividends are declared less the cash dividends.
Answer:
Balance Sheet
Explanation:
In accounting, Balance sheet will show a complete listing of assets, liabilities and Equity of a company within a specific time period. (For most companies, the balance sheet will be made at each end of the year)
under the Assets segment, Balance sheet will specify several accounts arranged based on their liquidity. Cash usually put at the top of the list since it's considered as the most liquid assets.
People use balance sheet to give a general measurement on Company's financial health. If for example, they noticed that the liability is significantly larger than their assets, investors might feel discourage to invest in the company.
Answer:
Dental Drilling Company's Income Statement for the year shows Net Income of $56,000.
Please note that:
- figures in bracket represent negative values
- solution in excel format is attached for your reference
Explanation:
Dental Drilling Company
Income Statement
Sales $489,000
Less: Cost of Goods Sold $(156,000)
Gross Profit $333,000
Less: Expenses
Selling and Administrative Expenses $(112,000)
Depreciation Expenses $(73,000)
Earnings before Interest and Tax $148,000
Less: Interest Expense $(45,000)
Earnings Before Tax $103,000
Taxes $(47,000)
Net Income $56,000
The defective rate per hour for a machine is 0.0148 or it can be said that the defective rate per hour for a machine is 1.48%.
<h3>What is the defective unit?</h3>
A unit is considered faulty if it has one or more flaws. The quantity of defective units is typically counted during inspections. Many people prefer to use the word "nonconforming units" to make it clear that just because a unit doesn't satisfy the requirements doesn't mean it is ineligible for use.
Given,
Total Production per hour = 2500
Defective unit per hour = 37
Calculation of Defective units rate per hour = Defective unit per hour divided by the Total Production per hour and multiply by 100.
Defective Unit rate per hour = 37 x 100/2500 = 1.48%
Thus, the defective unit per hour rate is 1.48% or 0.0148. The quantity of defective units is typically counted during inspections.
Learn more about Defective Unit here:
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I think the answer is $0.50, I’m sorry if it’s wrong
