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Sliva [168]
2 years ago
7

Titanium Metals Company had 20,000,000 shares of $0.01 par value common stock outstanding which had been sold for an aggregate a

mount of $300,000,000. The company’s shares are traded on the New York Stock Exchange, which has a minimum listing price of $1 per share. Recently, the company’s common stock has been trading on the exchange below $1 per share, and the exchange has notified the company that its common stock would be delisted in 30 days if the stock price did not rebound above its minimum listing price. In response to this notification, Titanium Metals authorized a 1-for-20 reverse stock split. Following the reverse stock split:a. How many common shares will be outstanding?Answerb. What will be the new par value per share?$Answerc. How will the reverse stock split be recorded in the company’s accounts?Answer-Memorandum/Journal Entry
Business
1 answer:
Klio2033 [76]2 years ago
4 0

Answer:

(a) Common shares outstanding after stock split:

=\frac{20,000,000}{20}

= 1,000,000

(b) New par value per share = 0.01 × 20

                                               = 0.2

(c) Since, there will be no change in the paid up capital after the reverse stock split. So, there is no need to record journal entry, as it will be accounted as the memorandum.

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As the result of an increase in capital the demand for labor would_______, the supply of labor would ________, and the quantity
Mademuasel [1]

Answer:

The correct answer here is option b.

Explanation:

When here is an increase in capital, the firm would like to produce more. So, the demand for labor would increase. Though the supply of labor would remain the same as it is not affected by the change in capital.

With the shift in the demand curve, the quantity of labor hired would increase as well. With no change in labor supply, the wage rate will increase as well.

8 0
3 years ago
A welding company specializes in custom steel frames and uses job costing to account for its operations. The following informati
nalin [4]

Answer: $21 per direct labor hour.

Explanation:

Based on the information given in the question, the predetermined overhead rate that is used will be calculated as:

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where,

Manufacturing overhead = 5460

Direct labor = 3900/15 = 260 hours

Therefore, predetermined overhead rate:

= 5460/260

= $21 per direct labor hour.

6 0
3 years ago
A $63,000 machine with a 7-year class life was purchased 2 years ago. The machine will now be sold for $50,000 and replaced with
Free_Kalibri [48]

The incremental annual cash flow associated with the project is $12400

<h3>What is incremental annual?</h3>

Sales resulting from a higher volume of sales are known as incremental revenue. Establishing a baseline revenue level and comparing changes from that point onwards is required to calculate incremental revenue.

<h3>According to the given information :</h3>

Depreciation=[($63,000/7 years)-($75,000/5 years)

Depreciation=$9000-$15000

Depreciation=$6000

Now let calculate the Incremental annual cash flow

Incremental annual cash flow

={($16000-$6000) - [($16000-$6000)*34%]+$6000}

= {(10000)- [10000*34%]+6000}

= {(10000) - 3600+6000}

= {16000-3600}

= $12400

Incremental annual cash flow=$12400

Therefore the incremental annual cash flow associated with the project is $12400

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4 0
2 years ago
A company has a retention rate of 50%, sales of $25,000, beginning equity of $50,000 and profit margins of 10%, an asset turnove
Degger [83]

Answer:

Sustainable Growth Rate: 2.5%

Explanation:

Sustainable growth rate is calculated by multiplying return on equity with retention ratio.

Logic behind above is that whatever portion of net profit is retained by the Company, is used in the Company's operations, which earns certain percentage of equity known as return on equity. By multiplying both return on equity with retention ratio, we assume that the practice will continue for foreseeable future and the Company will continue to grow at the calculated growth rate.

Growth rate = Retention ratio * return on equity

Retention ratio = 50%

Return on equity = Net profit available for distribution / Opening equity

Return on Equity = (25,000 * 10%) / 50,000

Return on Equity = 5%

Growth Rate = 5% * 50%

Growth Rate = 2.5%

5 0
2 years ago
Patio Creations is a manufacturer of outdoor furniture. Typically, customers purchase the company's products as the summer seaso
dmitriy555 [2]

The supply chain strategy that would work best for Patio Creations is the push strategy. This is further explained below

<h3>What is a push strategy?</h3>

A push marketing strategy, also known as a push promotional approach, is sim[ply defined as mone in which a company strives to take push its items to customers.

In conclusion, the push strategy helps the company strives to push its items to customers.

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7 0
1 year ago
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