Answer:
A) adjust the market price of a stock so it falls within a preferred trading range
Explanation:
A stock split is when a company increases the number of its shares outstanding.
for example if a company has 6 million shares outstanding at a price of $10, earning per share is $1 and dividend per share is $2. this company announces a 2 for 1 split :
the number of outstanding shares becomes 2 x 6 million = 12 million
stock price becomes = $10 / 2 =$5
earning per share = $1 / 2 = $0.50
dividend per share = $2 / 2 = $1
After a stock split, the price of the shares falls. so it can be used to adjust the market price of a stock so it falls within a preferred trading range.
A stock split doesn't affect the balances in shareholders equity account.
Stock split doesn't affect the cash holdings of the firm.
Market capitalisation doesn't change after a split, so stock value doesn't change.
Answer:
d. inflation will reduce their real wage and so decrease the number of available workers.
Explanation:
In the case when the demand for workers in some industries declines and they have to cut in nominal wages, so there would be increase in the wage bill of the industry because of this the price of the products will increased that also increase the inflation.
In the case when the inflation is rise, the real wage would fall as there would be declining in the purchasing power of money
So, the option d is correct
Answer:
a) comparative advertising
Explanation:
The given scenario exemplifies Comparative Advertising. It is a marketing strategy in which a product or service of a particular company is presented as superior when compared to a competitor's in terms of price, quality, etc. It may involve printing a side-by-side comparison of the features of a company's products next to those of its competitor as here Olivia listed the prices of various services that she offered as well as the prices charged by two other salons in the area for the same services.
Answer:
WACC=(Ke*E+D*Kd)/(E+D)
Explanation:
Ke (Cost of Equtiy)=11.17%
Kd (Cost of Debt)=5.32%
E (Market value of Equity)=?
D(Market Value of Debt)=65
If D market value is 31% of Total Market value of company so by grossing up D We get E+D=65/.31=210. So E=210-65=145
WACC=(Ke*E+D*Kd)/(E+D)
WACC=(11.17%*145+65*5.32%)/(145+65)
WACC=(16.2+3.5)/(210)
WACC=9.36%
Answer:
D. Debit to COGS for $93,000
Explanation:
The following two journal entries are to be recorded in the accounts on the sale of inventory.
Debit Credit
Revenue $111,000
Accounts receivable $111,000
Cost of Goods sold $93,000
Inventory $93,000
So based on the above discussion, the answer is D. Debit to COGS for $93,000
