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-BARSIC- [3]
3 years ago
11

Art purchased 2,500 shares of Delta stock. His purchase represents 10 percent ownership in the firm. His shares have increased i

n value from the $12 a share he originally paid to today's market value of $13 a share. Assume Delta goes bankrupt and owes $450,000 more in debts than the firm can pay after liquidating all of its assets. What is the maximum loss per share Art will incur on this investment
Business
1 answer:
Pie3 years ago
6 0

Answer: $12

Explanation:

From the question, we are informed that Art purchased 2,500 shares of Delta stock and his purchase represents 10 percent ownership in the firm. We are further told that his shares have increased in value from the $12 a share he originally paid to today's market value of $13 a share.

Assume Delta goes bankrupt and owes $450,000 more in debts than the firm can pay after liquidating all of its assets, the maximum loss per share Art will incur on this investment will be the purchase price per share which was given in the question as $12.

This is because when a firm guess bankrupt, the maximum loss which will be incurred by Art will be the value of his investment which is $12.

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For the year, Peggy Grey's Cookies had net income of $8,110. The firm paid out 30 percent of the net income to its shareholders
slamgirl [31]

Answer:

$2,933

Explanation:

The company had a net income of $8,110, and paid 30% of it to its shareholders, therefore:

$8,110 x 0.30 = $2,433.

But it also repurchased $500 worth of common stock, and this is to be distributed among the sharedholders as well, thus:

$2,433 + $500 = $2,933

8 0
3 years ago
To succeed in building a competitive advantage, a company's strategy must aim at Select one:
7nadin3 [17]

Answer: E (Both B & C)

Explanation:

As a staff in Coca-Cola, the number one brand in the world, Externally providing buyers with what they perceive as superior value and Internally performing value chain activities differently than rivals and building resources and capabilities that they cannot readily match - is infact the main reasons Coca-Cola have stayed as the major player in the food and beverage industry.

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3 years ago
If expectations of the future inflation rate are formed solely on the basis of a weighted average of past inflation rates, then
vaieri [72.5K]

Option C

If expectations of the future inflation rate are formed solely on the basis of a weighted average of past inflation rates, then economics would say that expectation formation is:  adaptive.

<u>Explanation:</u>

Adaptive expectations hypothesis implies that investors will modify their expectations of future behavior based on current prior behavior. In finance, this impact can effect people to produce investment decisions based on the way of contemporary historical data, such as stock price activity or inflation rates, and modify the data to prophesy future exercise or rates.  

If the market has been trending downward, people will possible expect it to proceed to trend that way because that is what it has been acting in the recent past.

7 0
3 years ago
"Sheridan Processes is involved with innovative approaches to finding energy reserves. Sheridan recently built a facility to ext
gladu [14]

Answer:

Natural gas is debited by $6.3 million and asset retirement obligation is credited by $6.3 million.

Explanation:

According to the scenario, computation of the given data are as follow:-

Estimated cost = $16 million

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So, we will make journal entry for asset retirement obligation by taking present value of assets.

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To Asset retirement obligation A/c  $6,300,000

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3 years ago
What is a trend in business
andre [41]
A trend in buisness is to invest
7 0
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