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Strike441 [17]
3 years ago
13

The cost of issuing new common stock is calculated the same way as the cost of raising equity capital from retained earnings. Fa

lse: Flotation costs need to be taken into account when calculating the cost of issuing new common stock, but they do not need to be taken into account when raising capital from retained earnings. True: The cost of retained earnings and the cost of new common stock are calculated in the same manner, except that the cost of retained earnings is based on the firm’s existing common equity, while the cost of new common stock is based on the value of the firm’s share price net of its flotation cost.
Business
1 answer:
stellarik [79]3 years ago
8 0

Answer: False: Flotation costs need to be taken into account when calculating the cost of issuing new common stock, but they do not need to be taken into account when raising capital from retained earnings.

Explanation:

When issuing common stock, the firm will need to pay certain floatation costs such as underwriting fees, legal fees, and registration fees. These will reduce the net amount received from the floatation of new securities.

When raising capital from the retained earnings however, the company can avoid flotation costs because they would be acquiring funds internally and so do not have to worry about paying other entities to access it.

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The following income statements were drawn from the annual report of The Western Sales Company. Year 2 Year 1 Sales 40,000 40,00
aniked [119]

Answer:

$9,555

Explanation:

As for the trend provided, the year 3 Sales will also be $40,000

Cost of goods sold will be $25,000

gross margin = $15,000

Operating expenses are decreasing with time by \frac{9,000 - 7,000}{9,000} = 0.22

Thus, it will decrease with the same trend = $7,000 - 22.22% = $5,445

Rounded off

Therefore, net income = $15,000 - $5,445 = $9,555

Note: Gain on sale of land is one time event and not permanent, thus it will not be considered as part of trend.

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3 years ago
Which event has the greatest consequences for the child Gail in “Child Waiting”?
dalvyx [7]

Answer:

her parents’ divorce

Explanation:

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2 years ago
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Elan Coil [88]
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6 0
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What is it about incentive systems that makes them so attractive to leaders attempting to implement organizational change
sveticcg [70]

Answer:

Incentive systems are so attractive to leaders who attempt to implement organizational change because they are powerful tools that can influence and motivate workers to embrace organizational change.

Explanation:

Incentive systems promote and encourage specific workers' actions or behavior. They are particularly used in businesses to motivate employees to adopt certain behaviors during a change transition by management.  Studies have shown that if correct incentive systems are correctly selected, implemented, and monitored, they can increase team performance by an average of 44 percent.  This improved performance makes incentive systems attractive to leaders who are implementing organizational changes.

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lozanna [386]

Employees who have the ability to work well with others to get things done are said to have technical skills.

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You should take care of your employees as much as you take care of your customers. If you trust and value your employees, they will be more committed to serving your customers well and ultimately contributing to your company in a great way.

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Learn more about employees here:brainly.com/question/1190099
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