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aleksandr82 [10.1K]
3 years ago
10

On June 2nd, SEAkayak had the following details for its common stock: 1,000,000 shares authorized, 400,000 shares issued, and 40

0,000 shares outstanding. The following transactions happened from June 2 to December 31 SEAkayak issues 2,000 shares of common stock on June 10th. SEAkayak repurchases 10,000 shares of common stock on September 2nd. SEAkayak resells 3,000 previously repurchased shares from September on December 1st. On December 31st, how many common stock shares does SEAkayak Inc. have authorized
Business
1 answer:
kompoz [17]3 years ago
3 0

Answer:

The authorized common stock shares remain 1,000,000 shares.

Explanation:

The authorized shares are not affected by movements in the shares, like issue of shares, repurchase, and resale of treasury stock shares.  The authorized shares, therefore, represent the number of shares that the company is legally bound to issue without exceeding.  The implication is that the company is free to issue shares less than or equal to the authorized shares, but it may not issue more than the authorized until it obtains a new authorization.

The movements are accounted for in separate accounts called Issued Common Stock Account and Treasury Stock Account.  The treasury stock account is a contra account to the Common Stock.

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Suppose your bank account pays interest monthly with an effective annual rate of 6%. What amount of interest will you earn each m
Bess [88]

Answer:

0.4868%

$615.47

Explanation:

Given that

a. EAR = 6%

Thus,

Equivalent monthly rate = (1 + r)^n - 1

Where r = EAR

Therefore

= (1 + 0.06)^1/12 - 1

= 1.0048675 - 1

= 0.0048675 × 100

= 0.4868%

b. Given that

Monthly rate = 0.4868%

Future value = 100,000

Time = 10 years

Recall that

FV annuity formula = C × (1/r) × ([1 + r ]^n - 1)

Where

C = payment

Therefore

100000 = C (1/0.004868) × ([1 + 0.004868]^120 - 1)

C = 100,000/(1/0.004868) × ([1 + 0.004868]^120 - 1)

C = $615.47 per month

4 0
3 years ago
Read 2 more answers
What is one way a market economy affects the lives of private citizens
vovikov84 [41]

Freedom of individual choice is possible to the extent that the market provides options for work, developing a business, and purchasing goods and services (so long as you can afford them).

Hope this helps :)

3 0
3 years ago
Landing Service is a lawn furniture company that has been around for many years. It is known for its ability to produce furnitur
morpeh [17]

Answer:

Landing Service

1. Refer to Landing Service. Because the company is known for its ability to produce lawn furniture more efficiently than any other company in the world, the company must have a(n) ____ advantage.  

e. absolute

2. Refer to Landing Service. What type of tax has the Brazilian government imposed on the company?

a. Import duty

Explanation:

Landing Service enjoys absolute advantage with its ability to produce furniture more efficiently than any other company in the world.  It implies that Landing Service can produce furniture with lesser input resources than other furniture companies in the world.

Import duty, in this scenario, refers to the tax imposed by the Brazilian government on Landing Service's furniture. This tax increases the price of the furniture for the Brazilian importers and consumers.

3 0
3 years ago
You save $5,000.00 and invest 60% of it in stocks while leaving the rest in a savings account earning a 4.9% APR. The stock incr
LiRa [457]
Amount invested in stocks 5,000 X 0.60 = 3,000

After one year gains 9%
3,000 X ( 1 + 0.09) = 3,270

After second year loses 4%
3,270 X ( 1 - 0.04) = 3,139.2 amount after second year

So Stocks gained 139.2 ( 3139.2 - 3000)

Amount of saving account
5,000 X 0.40 = 2,000

After 2 years
2,200 X ( 1 + 0.049)^(2) = 2,200.802

So gained 200.802 (2200.802 - 2000)

Total amount after 2 years
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7 0
3 years ago
A wealthy benefactor just donated some money to the local college. This gift was established to provide scholarships for worthy
Mariulka [41]

Answer:

Worth of scholarship today =  $1,000,000

Explanation:

<em>The value of the scholarship can be determined using the present value of a growing perpetuity. A growing perpetuity is an indefinite annual payment that increases by a constant percentage.</em>

<em>The applicable formula is given below;</em>

<em>PV = A/r-g</em>

A-annual payment  one year from now - 35,000

r- interest discount rate - 9.,

g- growth rate - 5.5

The value of the gifts today

= 35,000/(0.09-0.055)

= $1,000,000

5 0
3 years ago
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