Sensitivity analysis in the calculation of the adjusted present value (APV) allows the financial manager to Multiple Choice cons
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Option 3. The amount paid for the stock reacquired and currently held in its treasury.
2) Option 6. Credit common stocks $180,000.
2) Option 8. Debit cash $660,000.
Solution 1:
Treasury Stock represents "the amount paid for stock reacquired and currently held in Treasury".
Hence the third option is correct.
Solution 2:
Price of share = (Common stock + paid-in capital in excess of par) / Number of shares issued.
= ($100,000 + $460,000) / 50000
= $11.2 per share.
Solution 3:
Journal entry will be:
Debit Cash......................$660,000
Credit Common stock....................................$180,000
Credit Paid in capital in excess of par...........$480,000
Hence third, sixth and last options are correct.
Treasury stock is often a form of reserved stock set aside to raise funds or pay for future investments. Companies may use treasury stock to pay for investment or acquisition of competing businesses.
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Answer:
A. a movement downward along the supply curve.
Explanation:
According to the law of supply, the higher the price, the higher the quantity supplied and the lower the price, the lower the quantity supplied.
This accounts for why the supply curve is positively sloped.
A change in price of a good leads to a movement along the supply curve and not a shift of the supply curve.
Please check the attached image for a graph showing the supply curve
