Assuming the firm has 100 shares outstanding and debt with a face value of $50 due at the end of the period. The share price of the firm is $0.95.
<h3>Share price</h3>
First step is to calculate the expected payoff to equity
Expected equity=[($80 ×0.5) + ($210 × 0.5)]-$50
Expected equity=($40+$105)-$50
Expected equity = $145-$50
Expected equity=$95
Now let calculate the share price
Share price=$96/100 shares
Share price=$0.95
Inconclusion the share price of the firm is $0.95.
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Answer:
D) return on equity will increase.
Explanation: Return on equity is a financial term that explains the net income of a business venture. There are several ways through which the return on equity can be improved or increased in business.
(1) Reduction in the cost of operations or production of goods and services
(2) increase in the price of the product etc.
If the cost of producing a given Quantity of goods is reduced with sales remaining constant,THE RETURN ON EQUITY WILL INCREASE AS A RESULT OF THE INCREASE IN NET INCOME DUE TO REDUCED COST OF OPERATIONS OR PRODUCTION OF GOODS.
Answer:
$450 U
Explanation:
Spending Variance for Supplies = Standard Cost - Actual Cost
Standard cost formula = $1,200 per month + $20 per frame
Standard cost for actual output = $1,200 + ($20 
610)
= $1,200 + $12,200
= $13,400
Actual cost = $13,850
Spending Variance = $13,400 - $13,850
<u>= -$450 Unfavorable</u>
Since the value is negative the variance is unfavorable as actual cost is more than standard cost of the product.
Dictionary: Often a book listing the spellings and Definitions of words.
the correct answer is $60,000
How Do I Open a Cash Account?
To balance an account, just add up its debit and credit sides, then subtract the smaller (with a lower total value) side from the bigger side. The balance of the account is the difference between the two sides.
Any securities transactions must be paid in full from monies in the account at the time of settlement if the account is a cash one with a brokerage company. Thus, with this form of account, short selling and buying on margin are prohibited. Cash accounts and margin purchases of securities are governed by Regulation T of the Federal Reserve. Investors have two business days to pay for security under this legislation. T+2 is the name of it.
A ledger in which all cash transactions are documented is referred to as a cash account or cash book in accounting. The cash account contains both the cash receipts and payments journals.
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