Answer:
$11.60
Explanation:
In ascertaining the parity price of the common stock, we need to ascertain the conversion ratio which is the par price of the preferred stock divided by the convertible price
The par value of the preferred stock=$100(since call price is $110)
convertible price=$10
conversion ratio=$100/$10=10
The parity price is the current market price of the preferred stock divided by the conversion ratio
Parity price=$116/10
Parity price=$11.60
Answer:
The correct answer is False.
Explanation:
This statement is false, since the residual theory of dividends argues that these are irrelevant, that is, that the value of the company is not affected by its dividend policy. The main drivers of this theory are Modigliani and Miller. Both authors affirm that the value of the company is determined solely by the profitability and the degree of risk of its assets (investments), and that the way in which the organization divides its income between dividends and reinvestment does not have a direct effect on its value .
However, some studies show that significant changes in dividends affect the price of shares in the same direction, that is, increases in dividends translate into increases in stock prices, and vice versa. In response, M and M propose that the positive effects of dividend increases be attributed, not to the dividend itself, but to the informational content of dividends with respect to future income. Thus, any increase in dividends would cause investors to raise the price of the shares, while a decrease would cause a corresponding decrease in the price of the shares.
Answer: mean monthly income = $5000
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Explanation
In any normal distribution, the median and mean are the same value.
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The proof is as follows:
If mean > median was the case, then the distribution would be skewed to the right (ie positively skewed). The right tail is pulled longer than the left tail. But this would contradict the symmetrical nature of the normal distribution. So mean > median must not be the case.
If mean < median, then the distribution would be skewed to the left (negatively skewed). Visually this pulls the left tail longer than the right tail. Like in the previous paragraph, this contradicts the symmetrical nature of the normal distribution. So mean < median must not be the case.
Since mean > median cannot be true, and neither can mean < median, this must indicate mean = median.
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So in short, any symmetrical distribution always has mean = median and they are at the very center of the distribution.
Answer:
1) $240 warranty expense
2) $240 warranty liaiblity
3) zero as decreases the warranty laibility
4) 240 beginning - 209 used = 31 ending
5)
cash 6,000 debit
sales revenues 6,000 credit
--to record sale--
warranty expense 240 debit
warranty liability 240 credit
--to record prevision for warranty expenses--
warranty liability 209 debit
inventory 209 credit
--to record use of the warranty from the customer--
Explanation:
1) sales x expected warranty = 6,000 x 0.04 = 240
2) it will be for the 240 as the accounting works with double-entry
expensive...............................
