1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
True [87]
3 years ago
7

On June 5, 2019 , ABC Inc. instituted a 4-for-1 stock split. Before the split, ABC Inc. had 200,000 shares outstanding with a pr

ice of $168 per share. Show that the stock split for ABC Inc. was a monetary non-event.
Business
1 answer:
Amiraneli [1.4K]3 years ago
8 0

Answer:

Post split Shares: 800,000

Post split par value: $42

Explanation:

Given:

  • Number of out standing shares:  200,000
  • Price per share:  $168

ABC Inc. instituted a 4-for-1 stock split, it means that every holder of 1 share will receive 4 shares. So the total of outs standing stock will be increased 4 time, which is:

200,000*4 = 800,000 shares

The price of a split stock is calculated by dividing the face value of the proposed share:

$168 /4 = $42 per share

So:

  • Post split Shares: 800,000
  • Post split par value: $42
You might be interested in
Which of the following is not a typical strategic objective or benefit that drives mergers and acquisitions?a. to facilitate a c
ValentinkaMS [17]

Answer:

<h2>The correct answer in this case is option a. or to facilitate a company's shift from a broad differentiation strategy to a focused differentiation strategy. </h2>

Explanation:

Some of the major attributes or objectives behind commercial mergers and acquisitions commonly include expansion of market share or customer base through tapping into new markets(both geographically and new product based) and adopting product or service differentiation by combining business operations,invent more cost effective production processes or methods and gain access to new and improved technological resources and inputs.Hence,one of the important objectives of any commercial merger or acquisition is actually to enhance market share of the company or business organisation through diversified product differentiation and not on any focused differentiation strategy which can potentially cover a relatively wider consumer base.

4 0
3 years ago
Entries for Issuing Bonds Thomson Co. produces and distributes semiconductors for use by computer manufacturers. Thomson issued
Mila [183]

Answer:

The Journal Entry is shown below in the explanation section

Explanation:

The first step to take is to make use of the Journal entry.

Journal Entries for issuing Bonds

1 May       Cash                            800,000

               Bonds Payable                                              800,000

1 Nov       Interest expense          24,000

               Cash                                                               24,000

               (800,000* 6%*6/12)

31 Dec    Interest expense            8000

              Interest Payable                                               8000

              (800,000* 6%* 2/12)

3 0
3 years ago
Which of the following exemplifies a benefit of good​ communication?
Katyanochek1 [597]

Answer:E- Earlier warning of potential problems.

Explanation:Benefits of a good communication are numerous and are listed below:

1- It gives clarity and direction.

2-Effective communication skills provide clear and defined policies. 3-Organizational communication helps organization to be successful. 4- Effective interpersonal communication skills such as listening skills, making eye contact gives boost to your personality.

5- It informs of earlier warnings of potential problems.

5 0
3 years ago
If the next year’s dividend is forecast to be $5.00, the constant growth rate is 4%, and the discount rate is 16%, then the curr
SCORPION-xisa [38]

Answer:

The answer is $41.67

Explanation:

Po = D1/r - g. This formula is called Discount Dividend Model and it is one of the methods used in valuing company's stock.

Po is the present or current value of the stock

D1 is the next year dividend payment

r is the discount rate

g is the growth rate.

Po = $5.00 /0.16 - 0.04

= $5.00/0.12

=$41.67

Therefore, the current stock price is $41.67

6 0
3 years ago
Discussions of the economic results of rent control and of federal farm programs would be considered​ ________ analysis, and dis
mestny [16]

Answer: Positive and Normative

Explanation:

Positive economic analysis is basically something that is based on actual facts and cannot be approved or disapproved through views or opinions of others.

Whereas, normative economic analysis is something that focuses on the measure of how the policy is, whether good or bad or the way it should be or should become etc.

Rent control and federal farm programs are positive economic analysis. Its a fact.

Whether it is bad or good is normative economic analysis because you're able to value its fairness.

4 0
3 years ago
Other questions:
  • Using the graph, complete the table that follows by indicating whether each statement is true or false. Statement True False Bet
    6·1 answer
  • Who pleads with big business to hire again in great depression?
    5·2 answers
  • You bought a bond one year ago for $1,070.85. This bond pays a semi-annual coupon at the rate of 8.4% and matures 19 years from
    6·1 answer
  • Google: What is corporate responsibility?
    12·1 answer
  • A strategic plan is a carefully crafted set of steps that a firm intends to follow in order to be successful. The business model
    12·1 answer
  • On January 1, 2018, the Allegheny Corporation purchased machinery for $115,000. The estimated service life of the machinery is 1
    7·1 answer
  • Many locations require that renters be paid interest on their security deposits. If you have a security deposit of $3,600, how m
    5·1 answer
  • Metz Industries stock is twice as risky as the market on average. Given an expected return on the market of A. ​7.35% B. ​16.50%
    9·1 answer
  • Stoneheart Group is expected to pay a dividend of $3.17 next year. The company's dividend growth rate is expected to be 3.9 perc
    6·1 answer
  • stock x has a standard deviation of 21% per year and stock y has a standard deviation of 6% per year. the correlation between st
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!