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3 years ago

The stockholders' equity of TVX Company at the beginning of the day on February 5 follows.

Business

1 answer:

Monica [59]3 years ago

4 0

Answer:

TVX Company

Stockholders Equity Section of the Balance Sheet, February 28

Common stock $632,400

Paid in capital in excess of par value, Common stock $449,040

Retained earnings $513,560

Total Stockholders Equity $1,595,000

Workings

Common Stock

= Common Stock + Dividends Declared

= 620,000 + ( 2% * 62,000 shares * $10 par value)

= 620,000 + 12,400

= $632,400

Paid in capital in excess of par value, Common stock

Dividends were declared based on current market value of $31 not par value of $10 so the differnce will be catered for here.

= Balance + Dividends Declared

= 423,000 + (2% * 62,000 * $21 which is differnce between par value and market value)

= 423,000 + 26,040

= $449,040

Retained earnings

= Retained Earnings - Dividends distributed

= 552,000 - (2% * 62,000 * $31)

= 552,000 - $38,440

= $513,560

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Answer:

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3 years ago

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3 years ago

Read 2 more answers

You need a loan of â€‹$140,000 to buy a home. Calculate your monthly payments and total closing costs for each choice below. Bri

nadezda [96]

Answer:

Monthly Payment for Choice 1=$665.16
Monthly Payment for Choice 2=$627.10
Total Closing Cost for Choice 1=$241557.60
Total Closing Cost for Choice 2=$233456
(A)Choice 1 be the better choice the monthly payment is higher.
(D)Choice 2 be the better choice because the monthly payment is lower.

Explanation:

Amount of Loan needed = $140,000

A point is an optional fee which helps you get a lower interest rate on your loan.
Closing costs are the fees you pay when obtaining your loan.

Choice 1

30-year fixed rate at 4% with closing costs of $2100 and no points.

Monthly Payment

P=$140,000

Monthly Rate=4% ÷ 12=0.04 ÷ 12=0.0033

n=12 X 30 =360

$=\dfrac{Pr(1+r)^n}{(1+r)^n-1}$

$=\dfrac{140000X0.0033(1+0.0033)^{360}}{(1+0.0033)^{360}-1}\\=\dfrac{462(1.0033)^{360}}{(1.0033)^{360}-1}\\=\$665.16$

Monthly Payment=$665.16

Total Closing Cost =(665.16 X 360)+2100=$241557.60

Choice 2

30-year fixed rate at 3.5% with closing costs of $2100 and 4 points.

Monthly Payment

P=$140,000

Monthly Rate=3.5% ÷ 12=0.035 ÷ 12=0.0029

n=12 X 30 =360

$=\dfrac{Pr(1+r)^n}{(1+r)^n-1}$

$=\dfrac{140000X0.0029(1+0.0029)^{360}}{(1+0.0029)^{360}-1}\\=\dfrac{406(1.0029)^{360}}{(1.0029)^{360}-1}\\=\$627.10$

Monthly Payment=$627.10

Total Closing Cost =(627.10 X 360)+2100+(4% of 140000)=$233456

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