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4 years ago

The purchase of treasury stock usually restricts the amount of retained earnings available for cash dividends.a. Trueb. False

1 answer:

6 0

The statement, "The purchase of treasury stock usually restricts the amount of retained earnings available for cash dividends." is true .

Option a

<u>Explanation: </u>

The stock in the bank is the term for originally sold securities that the issuing firm has retained. If a corporation sells some of its released and outstanding securities, the sale drastically alters its retained profits.

As the balance sheet show all remaining earnings and the equity fund, sums available to pay dividends drop. The price of the stock in treasury should be reduced by the retained revenues, which reduce the amounts that the business can dividend to shareholders.

Sometimes a business needs the share-earnings ratio to be improved. If a company bought out many of its own shares, it reduces the number of released and outstanding activities raises the earnings per stake in the company and makes the assets more appealing for buyers.

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Select all that apply.

Bumek [7]

Answer:

facing the speaker and maintaining eye contact

3 0

3 years ago

"A municipal bond dealer quotes an 8 year 6% bond trading in the secondary market on a 4% basis. After considering all taxes, th

tensa zangetsu [6.8K]

Answer:

more than 4% but less than 6%

Explanation:

Given that the new quotes for a 4% bond trading in the secondary market are higher than 4% which is actually a 6% basis, thus, it is expected that the customer's yield to be greater than the initial 4%. However, given that, we are looking for the customer's yield after-tax, then the net customer's yield will be less than 6%.

Therefore, the right answer is that the customer's yield will be MORE THAN 4% but LES THAN 6%.

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3 years ago

Suppose the price of apples goes up from $22 to $24 a box. In direct response, Goldsboro Farms supplies 1300 boxes of apples ins

tamaranim1 [39]

Answer:

Elasticity of supply=3.3>1, there for the supply is elastic

Explanation:

Elasticity of supply can be defined as a ratio that can be used to test the sensitivity of supply due to a change in price.

The formula can be expressed as;

Elasticity of supply=Percentage change in quantity supplied/Percentage change in price

where;

Percentage change in quantity supplied=((Final quantity supplied-Initial quantity supply)/(Initial quantity supplied))×100

Final quantity supplied=1,300 boxes

Initial quantity supplied=1,000 boxes

Percentage change in quantity supplied=(1,300-1,000)/1,000=300/1,000

Percentage change in quantity supplied=(0.3×100)=30%

Percentage change in price=((Final price-Initial price)/(Initial price))×100

Final price=$24

Initial price=$22

Percentage change in price=(24-22)/22=2/22

Percentage change in price=(1/11)×100=9.1%

With all the values calculated, the elasticity of supply can be calculated as follows;

Elasticity of supply=30%/9.1%=3.3

Elasticity of supply=3.3>1, there for the supply is elastic

7 0

3 years ago

Danielle is a very careful shopper, and is keen on maximizing the value of every transaction she makes. She uses coupons wheneve

Marianna [84]

Answer:

C. value consciousness

Explanation:

Value consciousness consumer behavior -

Value consciousness is the consumer purchasing any product based on the quality and characteristics .

Danielle shows a type of value consciousness , as she always purchase items during the sale season , and use coupons where ever possible , as she values money more and tries to save money .

Even she tries to spend on some product or commodity which fell would be good for her family and is worth the money .

4 0

3 years ago

7200 shares of treasury stock of Coronado, Inc., previously acquired at $13 per share, are sold at $19 per share. The entry to r

GalinKa [24]

Answer:

Credit to Paid-In Capital from Treasury Stock for $43,200

Explanation:

Based on the information given The entry to record this transaction will include a Credit to Paid-In Capital from Treasury Stock for $43,200 calculated using this formula

Credit to paid-in capital treasury stock=[Number of treasury shares sold × (Selling price of treasury stock - Cost of treasury stock) ]

Let plug in the formula

Credit to paid-in capital treasury stock=[7,200*($19 per share-$13 per share)]

Credit to paid-in capital treasury stock=7,200*$6

Credit to paid-in capital treasury stock=$43,200

3 0

3 years ago