All categories

3 years ago

What best describes why a company issue stocks

Business

2 answers:

Cloud [144]3 years ago

7 0

Answer:

(D) to raise capital

Explanation:

A company issues stocks for several reasons. Among them, the most significant one is to increase the capital of the company. If the company issues stocks in the capital market, investors will buy the company's stock if they think that the company has a bright future. In this way, a company can raise their capital. Therefore, option D is correct.

Issuing stocks cannot either guarantee the profit of a company or provide dividends to the shareholder.

nekit [7.7K]3 years ago

4 0

Answer: to raise capital

Explanation:

You might be interested in

What does SMART stand for in terms of buisness aims

ArbitrLikvidat [17]

Answer:

Specific Measurable Attainable Realistic Time-Bound

8 0

3 years ago

Read 2 more answers

Harms Shoe Company applies manufacturing overhead based on the number of units as the cost driver. Information concerning costs

Rashid [163]

Answer:

The $64.20 is the unit product cost.

Explanation:

For computing the units produced for 1000 units, first we have to compute the total cost which is equals to

= Direct labor cost + direct material cost + manufacturing overhead

where,

Direct labor cost = labor hours × rate per hour

= 800 × $14

= $11,200

And. the manufacturing overhead = $8,000

Direct material = $45,000

Now put these values on the above equation

So,

Total units = $11,200 + $8,000 + $45,000

= $64,200

So the unit product cost is equals to

= Total cost ÷ number of units produced

= $64,200 ÷ 1,000

= $64.20

Hence, $64.20 is the unit product cost.

5 0

3 years ago

Jim is a college senior with $50,000 in student loans. he earned $2,000 last year. he has no savings so he charged a $5,000 vaca

laiz [17]

<span>It is irresponsible use of credit because his current income is too low. Hope I helped!</span>

5 0

3 years ago

Rossiter Restaurants is analyzing a project that requires $180,000 of fixed assets. When the period ends, those assets are expec

stealth61 [152]

Answer:

b) cash inflow in the final year of the project

Explanation:

Aftertax salvage value is the net proceeds from the sale or disposal of fixed assets like Plant and Equipment (PPE) at the end of the project. The amount of money received is an income and therefore, tax must be paid on it and the company keeps the rest.

The after tax salvage value of a fixed asset used in a project , is included in the NPV calculation . It is a terminal cashflow and is part of the project since the assets being sold are used in production of the items that Rossiter Restaurants sell. However, it is important to note that you will use the PV of the after tax salvage value with the PV of other cash inflows and initial investment amount to find the NPV of the project.

8 0

4 years ago

When health educators are creating and developing print materials, they need to incorporate ______ to decide how to formulate me

evablogger [386]

When health educators are creating and developing print materials, they need to incorporate the behavior change theory and models to decide how to formulate messages? The behavior change theory studies different types of change and how people react to them. Figuring out how people may react to messages allows people to have a better idea on how to address them.

6 0

4 years ago