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
pentagon [3]
3 years ago
7

Warrants exercisable at $20 each to obtain 30,000 shares of common stock were outstanding during a period when the average marke

t price of the common stock was $25. Application of the treasury stock method for the assumed exercise of these warrants in computing diluted earnings per share will increase the weighted average number of outstanding shares by
Business
1 answer:
aivan3 [116]3 years ago
3 0

Answer:

The increase in weighted average number of common shares is by 6,000 shares

Explanation:

Application of treasury method is used for exercising the warrants.

Outstanding Common shares = Number of shares / Market price * Exercisable price

= 30,000 shares / $25 * $20

= 24,000 shares

After the warrants have been exercise, the increase in weighted average number of common shares is as follows:

Increase in weighted average number of shares = 30,000 shares - 24,000 shares

= 6,000 shares

Thus, the increase in weighted average number of common shares is by 6,000 shares.

You might be interested in
Sonic sells the rights to use the business name and sell its products and services to others in a given territory. This arrangem
Ket [755]

Answer:

Sonic sells the rights to use the business name and sell its products and services to others in a given territory. This arrangement is called a franchise agreement.

Explanation:

The franchise agreement can simply be described as a legal agreement for binding of two or more companies. The agreement carries all the terms and conditions under which the two companies will work together. In such a kind of agreement, the owner of a business gives the rights of using the company name to another person or another company. The other company also gets the rights to sell products under the name of that company. In return, they agree to pay a commission or a part of their revenue as franchise fees.

5 0
3 years ago
Nissan’s all-electric car, the Leaf, has a base price of $32,780 in the United States, but it is eligible for a $7500 federal ta
katen-ka-za [31]

Answer:

Nissan's all-electric car, the Leaf

PV cost of Leaf Purchase =   $16,529

PV cost of Leasing =             $12,944.78

The company should lease the car.

Explanation:

a) Costs incurred to purchase the Leaf:

Base price                    $32,780

less Federal tax credit ($7,500)

Charging station             2,200

less 50% tax credit         (1,100)

Cash paid                  $26,380

Sales value after 3 yrs (9,851) ( $26,380 - 40% of base discounted to PV)

Net PV Investment    $16,529

b) Calculation of Discounted Present Values of Payments under Leasing, using online financial calculator:

PV (Present Value) $12,944.78

N (Number of Periods) 3.000

I/Y (Interest Rate) 10.000%

PMT (Periodic Payment)   $4,200.00

Starting Investment $2,500.00

Total Principal $15,100.00

Total Interest $2,129.50

c) The purchase of the Leaf would involve a present value cost of $26,380 after deducting all the savings from tax.  The 40% sales value of the car at the end of 3 years = $13,112 ($32,780 x 40%).  When this sales value is discounted to PV of $9,851, the PV of the car investments becomes $16,529 ($26,380 - $9,851).  On the other hand, leasing will cost in PV the sum of $12,944.78

.

6 0
3 years ago
A(n) _____ is an outside firm that specializes in the creation, production, and/or placement of the communications message and t
krek1111 [17]

Answer:

An advertising agency

Explanation:

An advertising agency is an agency that dedicates it's business to creating , planing , and managing all aspects of a client's advertising. It also specializes in promotions and marketing for its client.

Advertising can be carried out via websites, online and social campaigns, brochures, catalogs, direct mail, print ads, radio and TV commercials, and sales letters.

An advantage of an Advertisement agency is that it helps provide a creative environment that combines interesting activities with work, and great exposure too

6 0
3 years ago
When the government deregulates an industry, what does it expect will happen?
Semmy [17]
Please mark me as Brainliest
and please Thank me too!

They expect to not be having to regulating the industry anymore, or concern them selves regarding regulations of the said industry.
3 0
3 years ago
Read 2 more answers
You're a hardcore gamer, and you want to build the ultimate video game e-commerce site. You can think of a number of special fea
dlinn [17]

Answer:D

Explanation:

Inviting customers to write product review and recommendations

5 0
3 years ago
Other questions:
  • Ten years ago, Cary Company issued $1,500,000 of 7 percent, 10-year bonds at a price of 95. On the maturity date of January 2, a
    8·1 answer
  • The rising popularity of bubble and squeak as a breakfast item on the menu has resulted in a steady demand for peas. Over the co
    12·1 answer
  • What is a system involving the use of the experience, knowledge, and attentiveness of all crew members in the decision making pr
    5·1 answer
  • A gas station with only one gas pump employs the following policy: If a customer has to wait to buy the gasoline, the price is $
    9·1 answer
  • Why did african americans prefer sharecropping to wage labor?
    9·1 answer
  • e. Which of the following statements is true? Deflation means that the price level is falling, whereas with inflation the inflat
    11·2 answers
  • Shelly purchases a leather purse for $400. One can infer that:
    15·1 answer
  • Suppose this information is available for PepsiCo, Inc. for 2020, 2021, and 2022. (in millions) 2020 2021 2022 Beginning invento
    11·2 answers
  • 5. Based on the data in the table below, what is the probability that a driver aged
    10·2 answers
  • How do the courts make law?
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!