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alisha [4.7K]
3 years ago
9

NewCorp has net income of $360. The firm pays out 35 percent of the net income to its shareholders as dividends. During the year

, the company sold $81 worth of common stock. What is the cash flow to stockholders?
Business
1 answer:
zmey [24]3 years ago
4 0

Answer:

The cash flow to stockholders amounts to $45

Explanation:

Cash flow to stockholders is the term which is defined as the cash amount which the company pays out to the shareholders.

The cash flow to stockholders is computed as:

Cash flow to stockholders = Dividend paid - New equity raised

where

Dividend paid is computed as:

Dividend paid = Net Income × %

= $360 × 35%

= $126

New equity raised is $81

So, putting the values above:

Cash flow to stockholders = $126 - $81

Cash flow to stockholders = $45

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Answer:

interest expense 3,000 debit

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Explanation:

We will recognize the accrued interest for the period Nov 1st to Dec 31th

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  120,000   x 11%/12   x 3 months = 3,000

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When Anhueser Busch InBev sells Budweiser beer made in St. Louis, MO, to Germany, the sales of its product would be classified a
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Answer:

Export.

Explanation:

When a company sells its assets to a buyer in another country it is considered an export as the company is no longer considered an asset of the country of origin.

So when Anhueser Busch InBev sold Budweiser beer made in St. Louis, MO, to Germany, it carried out a United States export to Germany.

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The government unit that wants to achieve "revenue enhancement" will find it considerably more favorable to enact an excise tax
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Answer:

C. highly inelastic

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An excise tax on a product will increase its price from the equilibrium point, to a higher point set by the government.

If the government was to enhance its revenue by this means, it should enact the excise tax on products that are highly inelastic.

This is because a highly inelastic product is one whose quantity demanded does not fall considerably even if the price rises a lot.

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Carmen Company issued 10-year bonds on January 1. The 15% bonds have a face value of $100,000 and pay interest every January 1 a
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Answer:

d. $7,032          

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