Wage rates are primarily based on the:

Lasko's has 250,000 shares of stock outstanding, $400,000 in perpetual annual earnings, and a discount rate of 16 percent. The f

kicyunya [14]

Answer:

Extra shares required is 1,314,975

Explanation:

Outstanding shares of a firm are those shares that have already been issued to the general public and finds have been received by the company in exchange.

Current price per share = (Total value of shares ÷ Number of shares) ÷ Discount rate

Current price per share= (400,000 ÷ 250,000) ÷ 0.16

Current price per share= $10

Value of firm with project= Initial cost + {(Value of outstanding stock + Annual Perpetual cash flow) ÷ Discount rate}

Value of firm with project= -350,000+ {(400,000+ 60,000)÷0.16}

Value of firm with project= $2,525,000

New price per share= 2,525,000 ÷ 250,000= $10.10

Extra amount needed for project= 2,525,000 - 400,000= 2,152,000

Extra shares required= (2,152,000 ÷ $10.10)÷ 0.16

Extra shares required= 1,314,975

8 0

3 years ago

Open-market options are when the federal reserve buys and sells securities to influence the.

yarga [219]

<span>Open-market options are when the federal reserve buys and sells securities to influence the money supply.</span>

In the United States, a committee within the Federal Reserve is responsible for implementing monetary policy. The Federal Open Market Committee (FOMC) is comprised of the Board of Governors and five reserve-bank presidents, and it meets eight times throughout the year to set key interest rates and to determine whether to increase or decrease the money supply within the economy.

The FOMC buys and sells government securities to set the money supply. The is process is called open market operations. The government securities that are used in open market operations are Treasury bills, bonds and notes. If the FOMC wants to increase the money supply in the economy it will buy securities. Conversely, if the FOMC wants to decrease the money supply, it will sell securities.

4 0

3 years ago

"The market price average is decreasing daily; however, the level of declines relative to advances is falling. The market is rea

m_a_m_a [10]

Answer:

This question is incomplete, the options are missing. The options are the following:

A) Overbought condition.

B) Oversold condition.

C) Breakout on the upside.

D) Breakout on the downside.

And the correct answer is the option B: Oversold condition.

Explanation:

To begin with, the name of <em>"Oversold Condition"</em> refers to the situation where the price of an asset has reach a certain level that is relative low in comparison with the prices that it has have before. That situation can last for a long period of time so the most prudent way to act in the eyes of a trader is to wait until the price base out and start increasing.

So that situation in where the market price average is decreasing and reaching to its bottom is called Oversold Condition.

4 0

3 years ago

Uniform Supply accepted a $4,800, 90-day, 10% note from Tracy Janitorial on October 17. What entry should Uniform Supply make on

kolbaska11 [484]

Answer:

The answer is

Dr: Notes Receivable $4,800

Dr: Interest Receivable $120

Cr: Sales $4,920

Explanation:

The yearly interest rate is 10%

So the interest rate for 90 days(assume 360 days make a year?

90/360 x 10%

2.5% is the interest rate for 90 days.

The interest payment for 90 days will be;

2.5% x $4,800

= $120

The entry will now be:

Dr: Notes Receivable $4,800

Dr: Interest Receivable $120

Cr: Sales $4,920

3 0

4 years ago

While auditing the financial statements of a nonissuer, a CPA was requested to change the engagement to a review in accordance w

oee [108]

Answer: Neither A not B

Explanation:

When an accountant compiles the financial statements of a nonissuer in accordance with Statements on Standards for Accounting and Review Services (SSARS), the accountant's report should include a statement: that the accountant does not express an opinion on the financial statements.

When an independent CPA assists in preparing the financial statements of a publicly held entity but has not audited or reviewed them, the CPA should issue a disclaimer of opinion. In such situations, the CPA has no responsibility to apply any procedures beyond Documenting that internal control is not being relied on.

8 0

4 years ago