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Triss [41]
3 years ago
5

Which of the following occurs when a 2-for-1 stock split is declared?A) The balance in Common Stock remains the same.B) The bala

nce in Paid-in Capital in Excess of ParCommon doubles.C) The balance in Common Stock doubles.D) The balance in Common Stock is reduced to half the original amount.
Business
1 answer:
tekilochka [14]3 years ago
6 0

Answer:

Option A) Balance in common stock remains same.

Explanation:

A stock split is decided by the firm's directors' board in which the shares that are outstanding are increased in numbers by the division of shares and hence more shares are issued to each share holder.

In 2-for-1 stock split, as the name suggests that the company or firm provide a share in addition to the share held by the share holder for each share held.

Stock splitting has psychological effect on the investors as it diminishes the share price and divide the shares so the shares increases in numbers and decreases in price thus attracting the investors where the actual stock value remains same.

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Wally owns 200 acres of land.Wally offers to sell the land to Robert for $1,500 per acre.Robert replies that he does not need 20
stiv31 [10]

Answer:

D) Wally wins; this agreement is too indefinite since it does not identify which 40 acres are to be sold.

Explanation:

Since in the given situation, wally agrees to sell but here the identification of the land is not mentioned i.e. 40 acres and at the later time the wally refused to sold any land so here wally should wins as the agreement is not definite which type of the land should be sold so it becomes the agreement void

Hence, the correct option is d.

8 0
3 years ago
You are evaluating a fund that had an annual average return of 7.2%. During that time, the average risk-free rate was 1.5% and t
PilotLPTM [1.2K]

Answer:

Risk free rate(Rf) = 1.5%

Market return(Rm) = 8%

Beta(β) = 0.8

ER(P) = Rf  + β(Rm – Rf)

ER(P) = 1.5 + 0.8(8-1.5)

ER(P) = 1.5 + 0.8(6.5)

ER(P) = 1.5 + 5.2

ER(P) = 6.7%

Alpha = Annual average return - ER(P)

         = 7.2% - 6.7%

         = 0.5%

Explanation:

In this case, we will calculate the expected return on the stock based on CAPM. Thereafter, we will calculate alpha by deducting the expected return from annual average return.

7 0
3 years ago
An oil cartel effectively increases the price of oil by 100% causing a shock in oil consuming countries A and B. The FED in coun
Ann [662]

When an oil cartel effectively increases the price of oil by 100% causing a shock in oil consuming countries A and B.

The FED in country A takes immediate action increasing the money supply, while FED in inflationary country B does not take any action

In this case, in long term "Both countries return to their long-term stable equilibrium, but country A will remain with a higher price level than country B".

<h3>What is Federal Reserve System (FED)?</h3>

The nation's central banking system is the Federal Reserve System, usually referred to as the Federal Reserve or just the Fed.

The Fed offers a secure, adaptable, and stable monetary and financial system to the nation.

The Fed's primary responsibilities include-

  • overseeing and regulating banks,
  • implementing national monetary policy,
  • preserving financial stability, and
  • offering banking services.

Therefore, to better understand the effects of financial services laws and practices on customers and communities, the Federal Reserve promotes supervision, community reinvestment, and research.

To know more about  monetary policy, here

brainly.com/question/13926715

#SPJ4

3 0
2 years ago
Me. Gareth owns a toy-manufacturing company. Which of these items in his company is an intermediate good?
kakasveta [241]
Well it is a toy manfacturing company and the intermediate good would be a toy plane
5 0
3 years ago
Read 2 more answers
Which of the following things can you do to improve your credit score?
Art [367]
Use your credit card and pay it off each month
6 0
3 years ago
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