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
antoniya [11.8K]
3 years ago
10

Stock splits can be used to: C) increase the par value per share while decreasing the market price per share. A) adjust the mark

et price of a stock so it falls within a preferred trading range B) decrease a company's excess cash thereby lowering agency costs. E) adjust the debt-equity ratio to its preferred level D) increase the total equity of a firm.
Business
1 answer:
labwork [276]3 years ago
3 0

Answer:

A) adjust the market price of a stock so it falls within a preferred trading range

Explanation:

A stock split is when a company increases the number of its shares outstanding.

for example if a company has 6 million shares outstanding at a price of $10, earning per share is $1 and dividend per share is $2. this company announces a 2 for 1 split :

the number of outstanding shares becomes 2 x 6 million = 12 million

stock price becomes = $10 / 2 =$5

earning per share = $1 / 2 = $0.50

dividend per share = $2 / 2 = $1

After a stock split, the price of the shares falls. so it can be used to adjust the market price of a stock so it falls within a preferred trading range.

A stock split doesn't affect the balances in shareholders equity account.

Stock split doesn't affect the cash holdings of the firm.

Market capitalisation doesn't change after a split, so stock value doesn't change.

You might be interested in
Assume that you are participating in your employers direct deposit program. On payday, the employer deposits your _____ into you
Pepsi [2]
Is there any answer choices 
6 0
3 years ago
Read 2 more answers
Ruby is considering a college degree. She learned that the total costs (including the tuition, fees, and forgone wages) of a col
Yanka [14]

Answer: Increase of 3.2%

Explanation:

Return on Investment (ROI) is the return that Ruby would make over her college degree fees.

It is the internal rate of return that would equate her future earnings to the investment in college fees.

Change in ROI = 11.18% - 7.98

= 3.2%

Increase of 3.2%

6 0
3 years ago
The following transactions apply to Jova Company for Year 1, the first year of operation:
aleksandr82 [10.1K]

Answer:

<u>Year 1: </u>

a. Issued $17,000 of common stock for cash.  ⇒ ASSET SOURCE

Dr Cash 17,000

    Cr Common stock 17,000

b. Recognized $63,000 of service revenue earned on account.  ⇒ ASSET SOURCE

Dr Accounts receivable 63,000

    Cr Service revenue 63,000

c. Collected $56,400 from accounts receivable.   ⇒ ASSET EXCHANGE

Dr Cash 56,400

    Cr Accounts receivable 56,400

d. Paid operating expenses of $36,600.   ⇒ ASSET USE

Dr Operating expense 36,600

    Cr Cash 36,600

e. Adjusted accounts to recognize uncollectible accounts expense. Jova uses the allowance method of accounting for uncollectible accounts and estimates that uncollectible accounts expense will be 2 percent of sales on account. ⇒ ASSET USE  

Dr Bad debt expense 132

    Cr Allowance for doubtful accounts 132

<u>Year 2:</u>

a. Recognized $70,500 of service revenue on account.   ⇒ ASSET SOURCE

Dr Accounts receivable 70,500

    Cr Service revenue 70,500

b. Collected $64,400 from accounts receivable.  ⇒ ASSET EXCHANGE

Dr Cash 64,400

    Cr Accounts receivable 64,400

c. Determined that $860 of the accounts receivable were uncollectible and wrote them off.  ⇒ ASSET EXCHANGE

Dr Bad debt expense 860

    Cr Accounts receivable 860

d. Collected $300 of an account that had previously been written off.  ⇒ ASSET EXCHANGE

Dr Accounts receivable 300

    Cr Bad debt expense 300

Dr Cash 300

    Cr Accounts receivable 300

e. Paid $48,100 cash for operating expenses.  ⇒ ASSET USE

Dr Operating expense 48,100

    Cr Cash 48,100

f. Adjusted the accounts to recognize uncollectible accounts expense for Year 2. Jova estimates uncollectible accounts expense will be 1 percent of sales on account.  ⇒ ASSET USE

Dr Bad debt expense 117

    Cr Allowance for doubtful accounts 117

<u>trial balance year 1</u>

Dr Cash 36,800

Dr Accounts receivable 6,468

Cr Common stock 17,000

Cr Service revenue 63,000

Dr Operating expense 36,600

Dr Bad debt expense 132

Income Statement

<u>Year 1</u>

Service revenue                                       $63,000

Expenses:

  • Operating expense $36,600
  • Bad debt expense $132                 <u>($36,732)</u>

Net income                                                $26,268

Balance Sheet

<u>Year 1</u>

Assets:

Cash $36,800

Accounts receivable $6,468

Total Assets $43,268

Equity:

Cr Common stock 17,000

Retained earnings $26,268

Total equity $43,268

Statement of changes in stockholders' equity

<u>Year 1</u>

Beginning balance                       $0

Common stock issued               $17,000

Net income                              <u>  $26,268</u>

Ending balance                          $43,268

<u>trial balance year 2</u>

Dr Cash 16,600

Dr Accounts receivable 5,123

Cr Service revenue 70,500

Dr Operating expense 48,100

Dr Bad debt expense 677

Income Statement

<u>Year 2</u>

Service revenue                                       $70,500

Expenses:

  • Operating expense $48,100
  • Bad debt expense $677                 <u>($48,777)</u>

Net income                                                $21,723

Statement of changes in stockholders' equity

Beginning balance:

Common stock issued               $17,000

Retained earnings                     $26,268

Net income                               <u>  $21,723</u>

Ending balance                          $64,991

Balance Sheet

<u>Year 2</u>

Assets:

Cash $53,400

Accounts receivable $11,591

Total Assets $64,991

Equity:

Cr Common stock 17,000

Retained earnings $47,991

Total equity $64,991

Statement of cash flows

<u>Year 2</u>

Net income                                           $21,723

Adjustments to net income:

Increase in accounts receivable         <u>($5,123)</u>

Net cash from operating activities     $16,600

Net cash increase                               $16,600

Beginning cash balance                    <u>$36,800</u>

Ending cash balance                         $53,400  

3 0
3 years ago
Gross Earnings are the same as:
meriva
Gross income, or gross profit I think
8 0
3 years ago
The team members of the technical team in Wescrult Inc. are working on a crucial project. Their previous manager assigned respon
konstantin123 [22]

Answer: Controlling

Explanation: Controlling is the function of management that sets the standards for the performance, then compares the actual performance with the standards set and take corrective action if there comes any discrepancy.

In the given case, Wendy is monitoring the tasks performed by others and is also taking corrective actions. Thus, we can conclude that wendy is  performing controlling function.

3 0
3 years ago
Other questions:
  • Consider your home and possessions. What types oF risks do you Face? What insurance would you recommend to someone in a similar
    12·2 answers
  • Which of the following best describes the objective of a fraud examination?
    15·1 answer
  • Who is james monroe?
    5·2 answers
  • With Kanban, project management becomes a game of facilitating and implementing better risk management.
    14·1 answer
  • Your friend hopes to expand her business to multiple locations. It would be best for her to create a1. limited liability company
    9·1 answer
  • What term is used to describe something that prevents a listener from understanding a message?
    10·1 answer
  • A lockbox plan is most beneficial to firms that Select one: a. have widely dispersed manufacturing facilities. b. have a large m
    13·1 answer
  • a car travelling at 36km / h accelerates uniformly acceleration final 2m / s ^2 find its velocity in 5 second ​
    5·1 answer
  • Jeannine and Ryan, have both been working full-time jobs for many years. They are about to adopt three siblings and are trying t
    9·1 answer
  • Why does customer service matter
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!