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Helen [10]
3 years ago
12

ABC Corporation has declared a rights offering to stockholders of record on Friday, December 10th. Under the offer, shareholders

need 10 rights to subscribe to 1 new share at a price of $19. Fractional shares can be rounded up to purchase 1 full share. As of the ex date, the stock is trading at $29. The value of the right is:
Business
1 answer:
VashaNatasha [74]3 years ago
4 0

Answer:

The value of a right is $1

Explanation:

10 rights are needed to buy 1 share at the price of $19

Value of total rights = $29 - $19 =$10

Value of a right = \frac{10}{10} = $1

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Zacher Co.'s stock has a beta of 1.40, the risk-free rate is 4.25%, and the market risk premium is 5.50%. What is the firm's req
mihalych1998 [28]

Answer:

The answer is option (C). The firm's required rate of return=11.95%

Explanation:

The required rate of return can be expressed using the formula below;

RRR=RFR+B(MRR)

where;

RRR=required rate of return

RFR=risk free return

B=beta

MRR=market rate of return

In our case;

RRR=unknown

RFR=4.25%

B=1.4

MRR=5.5%

This can be written as;

Required rate of return=risk free return+(beta×market rate of return)

replacing;

RRR=4.25%+(1.4×5.5)

RRR=(4.25%+7.7)=11.95%

The firm's required rate of return=11.95%

5 0
4 years ago
Jackson Company manufactures three products from a joint process. Joint costs for the year amounted to​ $300,000. The following
son4ous [18]

Answer:

Joint costs allocated to Product Y = $60,000

Explanation:

Given:

Particular     Product Units     Produced Sales

X ​                       5,000               ​$70,000

Y                        ​3,000 ​              $30,000

<u>Z ​                       2,000 ​              $100,000</u>

<u>Total                   10,000         </u>

Joint costs allocated to Product Y = (Total Joint costs × Y's total unit) / Total units produced

Joint costs allocated to Product Y = ($300,000 × 3,000) / 10,000

Joint costs allocated to Product Y = $90,000

4 0
4 years ago
In declining markets: 1. the only effect advertising will have on primary demand is to slow the rate of decline.2. advertisers a
vovangra [49]

Answer: 1. The only effect advertising will have on primary demand is to slow the rate of decline.

Explanation: Declining markets are those that have gone from maturity - where sales stay flat or may even climb occasionally - to multiple periods where there are decreasing sales. This drop in sales is the first and most obvious sign of a declining market and lower sales quickly lead to other attributes.

Common characteristics of the decline stage include a decrease in sales, an increasing difficulty to make a profit, and a decrease in advertising.

7 0
3 years ago
Which of the following is an example of proper texting etiquette?
Rudik [331]

Answer:

a.

Explanation:

From all of the answers provided it can be said that the one that is an example of proper texting etiquette would be applying the same timing guidelines to sending and receiving text messages that you would for speaking on the phone (such as not during a meeting or when in a social setting). Individuals want to receive a response to their text as soon as possible but at the same time do not want to be disturbed when they are in an important meeting, therefore knowing when and when not to send a message is just part of proper texting etiquette.

5 0
3 years ago
The term used to define what is expected of individuals because of their specific positions in an organization is called their
Leto [7]

The term used to define what is expected of individuals because of their specific positions in an organization is called their job description. The job description is a list explaining what is needed for the job the person has applied for. This description lets the person applying know what is expected of the person they hire. If hired and offered the position then the duties listed in the description and sometimes more will need to be completed.

7 0
3 years ago
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