Answer:
Common Stock 5,000
Additional paid-in Common stock 70,000
Preferred Stock 15,000
Additional paid-in Preferred stock 22,500
Explanation:
For the common and preferred stock accounts, we multiply the shares outstanding by the face value.
The additional paid-in will be the difference between the par value and the market price of the share at issuance.
<u>Common stock</u>
5,000 issued shares x $ 1 par value = 5,000
<u>Additional paid-in</u>
15 - 1 = 14 additional paid-in per share
5,000 shares x 14 = 70,000
<u>Preferred stock</u>
1,500 issued shares x $ 10 par value = 15,000
<u>Additional paid-on</u>
25 - 10 = 15 additional per share
1,500 x 15 = 22,500
Answer:
The discount rates were lowered
Explanation:
Discount rate is the rate that is used to determine the present value of future cash flows that will be spent in a project.
This is different from the cost of capital which is the amount that just meets the incurred cost of executing a project.
Discount rate determines of the benefits of the project are greater than the cost.
In the given scenario where benefits balance the cost, the project will be worthwhile is discount rate is lower.
That is there will be a lower cost of execution of the project so revenue will be higher than the cost
Answer: Balloon Loan
A balloon loan is a type of loan where the final payment is usually much larger than the payment preceding it.
In a balloon loan, the entire loan amount is given to the borrower as soon as the loan is approved and the contract is signed.
The interest falls due and is paid during the life of the loan.
The principal however, is paid as a balloon payment on the final day of the life of the loan.
Stabilize the float of economy and value
Answer:
The correct answer is a. more elastic demands.
Explanation:
There are some goods whose demand is very price sensitive, small variations in their price cause large variations in the quantity demanded. It is said of them that they have elastic demand. The goods that, on the contrary, are not sensitive to price are those of inelastic or rigid demand. In these large variations in prices can occur without consumers varying the quantities they demand. The intermediate case is called unit elasticity.
The elasticity of demand is measured by calculating the percentage by which the quantity demanded of a good varies when its price varies by one percent. If the result of the operation is greater than one, the demand for that good is elastic; If the result is between zero and one, its demand is inelastic.
The factors that influence the demand for a good to be more or less elastic are:
1) Type of needs that satisfies the good. If the good is of first necessity the demand is inelastic, it is acquired whatever the price; On the other hand, if the good is luxurious, the demand will be elastic since if the price increases a little, many consumers will be able to do without it.
2) Existence of substitute goods. If there are good substitutes, the demand for good will be very elastic. For example, a small increase in the price of olive oil can cause a large number of housewives to decide to use sunflower.
