1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Veseljchak [2.6K]
3 years ago
5

Luther Industries currently has 5 million shares outstanding and its stock is currently trading at $40 per share. Assuming Luthe

r issues a 5:2 stock split, then Luther's new share price is closest to:
Business
1 answer:
aliya0001 [1]3 years ago
6 0

Answer:

The Luther's new share price is closest to $16

Explanation:

For computing the new share in case of the stock split, first we have to find out the value of total share which is shown below:

Value of share = Outstanding number of shares × price per share

                        = 5,000,000 × $40

                        = 200,000,000

Now we find out the outstanding shares after the stock split which equal to

= Value of share × stock split ratio

=5,000,000 × 5 ÷ 2

= 12,500,000

Then, compute the new share price which is equal to

= Value of shares ÷ stock split outstanding shares

= 200,000,000 ÷ 12,500,000

= $16

Hence,  Luther's new share price is closest to $16

You might be interested in
C. "Higher level professions require indepth knowledge, good skill, and In
Oxana [17]

Answer:

Motivation and enthusiasm. Your next employer is investing in you, so they need to see that you are enthusiastic about working and motivated in your career.

Explanation:

6 0
3 years ago
Raul recently started a real estate company with a unique way of presenting a menu of​ services, each with a fixed​ price, rathe
Zigmanuir [339]

Answer:

small business

Explanation:

Based on the company specifications that is provided about Raul's company the most appropriate representation of his firm would be a small business. This is the case because a small business is categorized as any business with one owner controlling and running a business with less than 100 employees. Seeing as Raul only has 21 brokers employed and is planning to expand his model nationally but has NOT yet done so, then he is the owner of a small business.

6 0
3 years ago
On December 31, 2017, Beta Company had 320,000 shares of common stock issued and outstanding. Beta issued a 4% stock dividend on
rosijanka [135]

Answer:

The answer is 324,050 shares

Explanation:

Stock dividends adds to the total number of shares outstanding while treasury stock(buy-back) reduces the total number of outstanding shares.

Beta issued a stock dividend of 4percent. Meaning the outstanding shares will increase by 4percent.

1.04 x 320,000 shares

=332,800 shares is the total number of outstanding shares before treasury stock.

Treasury stock issued on September 30, 2018. This means we have 3months(October 1 - December 31st, 2018).

So we have 3/12 x 35,000 shares

= 8,750 shares

Therefore, the appropriate number of shares to be used in the basic earnings per share computation for 2018:

=332,000 shares - 8,750 shares

= 324,050 shares

6 0
3 years ago
One of the differences in accounting for a process costing system compared to a job order system is that the amounts used to tra
AlekseyPX

Answer:

The correct answer is letter "A": true.

Explanation:

Companies using the process costing approach accumulate and assign costs to mass production of a good. Instead, job order costing assigns costs of manufacturing to individual units of production. In process costing, the costs are reported from one department involved in manufacturing to another following the production process. On the other hand, in job order costing, the costs are reported in job cost cards as they are being used.

7 0
3 years ago
Item11 Item 11Item 11 Schister Systems uses the following data in its Cost-Volume-Profit analyses: Total Sales $ 390,000 Variabl
sleet_krkn [62]

Answer:

the total contribution margin is $245,700

Explanation:

The computation of the total contribution margin in the case when the sales volume rise by 40% is shown below:

Since the sales volume is rise so the contribution margin is also rise by 40%

Therefore the total contribution margin would be

= Contribution margin × (1 + increased percentage)

= $175,500 × (1 + 0.40)

= $175,500 × 1.40

= $245,700

Hence, the total contribution margin is $245,700

5 0
3 years ago
Other questions:
  • A speaker who thinks uncritically looks for good reasons to accept or reject others' opinions.
    10·1 answer
  • Jaronda founded Diamond Communications Inc. in 1993. Ten years later, the company went public. Despite Jaronda's death in 2005,
    5·1 answer
  • American shoppers usually do not like it when a store is so cramped that the customers may touch one another while shopping. whe
    14·2 answers
  • ________ can be defined as raw numbers or other factual information that, on their own, have limited value to marketers. select
    10·1 answer
  • Columbia Sportswear makes nylon activewear. Its marketing manager set a goal to increase sales 12 percent over the next three ye
    14·1 answer
  • Which of the following is NOT true of capital productivity? a. Changing the way a firm handles inventory to reduce capital expen
    11·1 answer
  • The 2016 annual report for Mega Mills disclosed that 1 billion shares of common stock have been authorized. At the end of 2015,
    12·1 answer
  • Innovation and enterprise can help to develop new and niche markets - True or False?
    15·1 answer
  • Nathan and Diana are married and have three married children and seven minor grandchildren. For tax year 2020, what is the maxim
    10·1 answer
  • Moss Co. issued $100,000 of five-year, 11% bonds with interest payable semiannually, at a market (effective) interest rate of 8%
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!