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3 years ago

Stock dividends and stock splits should, at least conceptually, have the same effect on shareholders' wealth. True or false?

Business

1 answer:

bulgar [2K]3 years ago

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Answer:

The correct answer is True.

Explanation:

The dividend in shares is a distribution of benefits, through which a corporation distributes to its shareholders shares released from the issuance itself or shares of open stock companies that the company owns.

A division of shares is a corporate action that increases the number of shares in circulation of the company by dividing them, which in turn decreases its price. The market capitalization of the share, however, remains the same, just as the value of the $ 100 bill does not change if it is exchanged for two of $ 50. For example, with a division of shares of 2 by 1, each shareholder receives an additional share for each share held, but the value of each share is reduced by half: two shares now equal the original value of a share before the division .

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<span>A made up situation I can write is that you could talk about and discuss finances with a financial advisor or consultant who knows these issues better than you. To make these communications less stressful, you can comprehend that the consultant is there to help and is able to help and/or when you get excessively furious, you can take deep breathes to lessen the stress and make yourself calm.</span>

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2 years ago

Read 2 more answers

Suppose your expenses for this term are as follows: tuition: $10,000, room and board: $6,000, books and other educational suppli

Triss [41]

Opportunity cost is the loss due to forgoing one opportunity to select another one alternative.

In this case, the forgone alternative is the full-time employment and other expenses for the term when the alternative chosen is to be in school. In this case, room and board expenses remain the same whether in school or working full time and thus not considered. The part-time amount earned while at school is subtracted as it would be compensated be during full time employment.

Therefore;
Opportunity cost = $20,000+$10,000+$1,000-$8,000 = $23,000

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2 years ago

What are the items that can result in higher interest earned

Eduardwww [97]

<span>A higher interest rate and/or a higher balance will result in higher interest earned.</span>

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2 years ago

People with the primary responsibility for administering the systems that house the information used by the organization perform

Alexus [3.1K]

Answer:

system administrators

Explanation:

System administrators -

It refers to the people , who are incharge to maintain the IT infrastructure of the company , is referred to as system administrators.

The person play an important role in order to maintain the system.

Hence , from the given information of the question,

The correct term is system administrators .

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3 years ago

On September 1, 2017 Magna Highend Vehicles a New York based sole proprietorship needed funds to expand to New Jersey and Connec

Veseljchak [2.6K]

Answer:

a) Journal Entries for 2017: Magna Highend Vehicles

October 3, 2017:

Debit Building with $800,000

Credit Preferred Stock with $750,000

Credit Share Premium (Preferred Stock) with $50,000

Being issue of 15,000 preferred stock in exchange for building.

November 8, 2017:

Debit Cash with $350,000

Credit Preferred Stock with $250,000

Credit Share Premium (Preferred Stock) with $100,000

Being issue of 5,000 preferred stock in cash at $70 per share.

December 3, 2017:

Debit Cash with $750,000

Credit Common Stock with $25,000

Credit Share Premium with $725,000

Being issue of 50,000 common stock at $15 per share.

b) 2016 Journal Entries for QC Delila Catering:

March 1, 2016:

Debit Cash with $270,000

Credit Stock with $270,000

Being issue of 15,000 shares at $18 per share.

April 15, 2016:

Debit Legal Fee with $6,500

Debit Stock Discount with $43,500

Credit Stock with $50,000

Being issue of 5,000 shares worth $10 per share in settlement of a legal fee.

June 10, 2016:

Debit Cash with $550,000

Credit Stock with $550,000

Being issue of 25,000 shares at $22 per share.

Explanation:

Shares at be issued in exchange for cash or other assets, and even in settlement of a liability.

Some shares are issued at a discount while some are issued at a premium or at par. A share issued at a discount means that the stock was sold for less than its market value or par value. For example, the issue of stock worth $50,000 in settlement of a legal fee of $6,500.

Shares issued at a premium are sold for more than their par values. The par value of a stock is the stated nominal value as against the market price. Usually, if a stock is doing well in the market, the market price is more than the par value.

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3 years ago