Answer: $33,000
Explanation: In simple words, stockholders equity is that amount of assets in the company, that is not financed by a liability. Thus, we can say that it is the difference between the assets and liabilities of the business.
It can be computed using following formula :-
stockholders equity = issuance of common stock + net income - dividend paid
= $30,000 + $8,000 - $5,000
= $33,000
Answer:
Simple rate of return on Investment = 6.34%
Explanation:
As per the data given in the question,
Initial investment = $804,600
Realisable value = $22,400
Net cash flow = $804,600 - $22,400
= $782,200
Annual income:
Net income = Cash savings - Depreciation
= $139,000 - $89,400
= $49,600
Simple rate of return on Investment = Net income ÷ Net cash flow
= $49,600 ÷ $782,200
= 0.0634
= 6.34%
Answer:
The correct answer is the demand has increased.
Explanation:
At the market price of $5/unit, the quantity demanded is 20 units.
Last year at the price level of $4, the quantity demanded was 20 units.
We see that even though the price has increased the quantity demanded is the same. This indicates that the demand has increased.
When there is an increase in the demand for a commodity, the demand curve moves to the right. This upward or rightward shift in the demand curve will cause the price of the commodity to increase. Though the quantity demanded will be the same.
Answer:
Yes, it will affect it.
Explanation:
The dividends received deduction (DRD) refers to a US federal tax law that allows some corporation that are paid dividend by related entities to deduct certain percentage of the dividend received from their income tax depending on their percentage of ownership of the related entity that paid the dividend.
The three criteria or tiers that determines how much to deduct as DRD are as follows:
1. Generally, the DRD a corporation is qualified for is 70% of the dividend received.
2. A DRD equals to 80% of the dividend received can be deducted if the corporation holds more than 20% but less than 80% shareholding of the company that paid the dividend.
3. If the corporation holds more than 80% shareholding of the company that paid the dividend, a DRD of 100% of the dividend applies.
Therefore, additional stock purchase will affect the amount of dividends received deduction that Mustard can claim.
Answer:
$120,000
Explanation:
The total profit for Winter company is computed as seen below
($15 × 15,000 units) - [$10,000 + $5,000(($2.50 + $0.75 + $1.25 + $1.50)15,000)]
= $225,000 - [$5,000 + ($6 × 15,000)]
= $225,0000 - $105,000
= $120,000