Answer: The answer is c $1,080 $560
Explanation:
The journal entry will be
Dr: common stock $200 million
Dr: paid in capital $180 million
In the stockholders equity section , the treasury stock is seen as a separate line item in the stockholders equity. The treasury stock will be deducted from the total stockholders equity. The treasury stock is not a part of paid in capital nor part of the retained earning.
Therefore the balance in the paid in capital excess of par Retained Earnings is 1,080 $560
Answer:
Explanation:
The yield to maturity on a bond is the same thing as the required return. The YTM and the coupon rate is a totally different thing. The coupon rate is the interest which is computed on the principal amount whereas yield to maturity is a rate which is held at the maturity and its rate is also generated in maturity date.
So, in the given case, the Coupon rate is 10% and the YTM is 8% as it reflects the maturity i.e two years from now
Answer:
Price of the stock today = $82.35
Explanation:
Note: See the attached file for the calculation of present values for year 1 to 8 dividends.
From the attached excel file, we have:
Previous year dividend in year 1 = Dividend just paid = $2.50
Total of dividends from year 1 to year 8 = $23.46345631521910
Year 8 dividend = 8.77863318950395
Therefore, we have:
Year 9 dividend = Year 8 dividend * (100% + Dividend growth rate in year 9) = 8.77863318950395 * (100% + 7%) = 9.39313751276923
Price at year 8 = Year 9 dividend / (Rate of return - Perpetual dividend growth rate) = 9.39313751276923 / (13% - 7%) = $156.552291879487
PV of price at year 8 = Price at year 8 / (100% + Required return)^Number of years = $156.552291879487 / (100% + 13%)^8 = $58.88868846568915
Price of the stock today = Total of dividends from year 1 to year 8 + PV of price at year 8 = $23.46345631521910 + $58.88868846568915 = $82.35
Answer:
D. services.
Explanation:
Examples of services are financial service, delivery services.
The economic activities that typically produce an tangible product are referred to as goods.
I hope my answer helps you
Answer:
D. Optimization, Equilibrium and Empiricism.
Explanation:
Economics is based on three key concepts which are Optimization, Equilibrium and Empiricism. Optimize is the first principle which means people will select best available option. Second important principle is that economy is always in a state of equilibrium which means if one gains the other also gets best available value. Third concept is that economists use data to make policies. The situation given in the scenario follows all the key concepts of economy.
