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MA_775_DIABLO [31]
3 years ago
13

Scubapro Corporation currently has 500,000 shares of common stock outstanding and plans to issue 200,000 more shares in a season

ed equity offering. The current shareholders have pre-emptive rights on any new issues of common stock by Scubapro Corporation. How many shares would an investor who currently has 20,000 shares, have the right to buy if she exercises her pre-emptive right?A) 200,000 shares.
B) 120,000 shares.
C) 20,000 shares.
D) 12,000 shares.
E) 8,000 shares.
Business
1 answer:
Ivan3 years ago
3 0

Answer:

Scubapro Corporation

The investor who currently has 20,000 shares has the right to buy this number of shares, if she exercises her preemptive right:

E) 8,000 shares.

Explanation:

Data and Calculations:

Outstanding common stock = 500,000

Planned issue of additional shares = 200,000

Proportion of new issue to outstanding = 0.40 (200,000/500,000)

For an investor with 20,000 shares, she has the right to buy 8,000 (20,000 * 0.40) additional shares.

You might be interested in
An asset was purchased for $126,000 on January 1, Year 1, and originally estimated to have a useful life of 8 years with a resid
katrin [286]

Answer:

The correct answer is $23,663

Explanation:

Spreadsheet is attached with the calculus.  

Depreciation expense is the difference between the cost of the asset and the residual value, divided by the useful life of the asset.

Depreciation expense=(original cost-residual cost) /useful life

In this case,  conditions change at third year.  First, we must calculate the depreciation expense with the first situation. The first 2 years , we are going to decrease the asset value  with this depreciation expense.

Situation 1  Depreciation expense 14375

At third year ,  we must recalculate the depreciation expense.  The final value of second years is the  new "original value".

Situation 2

Original Value  97250

Residual Value  2600

Useful life  4

Depreciation expense= (97250 - 2600 )/4

Depreciation expense= 23,663

Download xlsx
4 0
3 years ago
Dallas Company uses a job order costing system. The company's executives estimated that direct labor would be $3,360,000 (240,00
makkiz [27]

Answer:

Estimated manufacturing overhead rate= $6.42 per direct labor hour

Explanation:

Giving the following information:

The company's executives estimated that direct labor would be $3,360,000 (240,000 hours at $14/hour) and that factory overhead would be $1,540,000 for the current period.  

Using direct labor hours as a base, what was the predetermined overhead rate?

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Estimated manufacturing overhead rate= 1,540,000/240,000= $6.42 per direct labor hour

5 0
3 years ago
A cement manufacturer has supplied the following data:
Vesnalui [34]

Answer:

d. $2.10 per unit

Explanation:

Calculation for What is the company's unit contribution margin

First step is to calculate the Variable cost using this formula

Variable cost = Variable Manufacturing Expenses + Variable Selling & Administrative Expenses

Let plug in the formula

Variable cost = $297,000 + $165,000

Variable cost = $462,000

Second step is to calculate Total Contributiom Margin using this formula

Total Contributiom Margin=Sales – Variable Cost

Let plug in the formula

Total Contributiom Margin= $924,000 - $462,000

Total Contributiom Margin= $462,000

Now let calculate Unit Contribution Margin using this formula

Unit Contribution Margin= Total Contribution Margin/Total number produced and sold cement

Let plug in the formula

Unit Contribution Margin = $462,000 / 220,000 Unit Contribution Margin= $2.10 per unit

Therefore the Unit Contribution Margin will be $2.10 per unit

8 0
2 years ago
QUESTION 10
melisa1 [442]

Answer:

business

Explanation:

Business is a term that generally describes a firm, company, or individual's combined activities, or system that deal with the creation of commodities or services for the purpose of meeting the targeted consumers' demands.

In order to meet the targeted consumers' demands, businesses transform lower-value inputs into high-value outputs.

Hence, in this case, the correct answer is BUSINESS

5 0
3 years ago
Mrs. Larkin rents an apartment to a couple who argue continually, disturbing other tenants. Without going through the lawful evi
natima [27]

Answer:

B.  an actual eviction

Explanation:

Actual eviction -

It refers to the process of getting rid of the tenant by the landlord, for any violation, is referred to as actual eviction.

It is a completely legal practice, where it the landlord is not not comfortable with the tenant or if the tenant violates any rules, then the landlord has the legal right to remove the person.

Hence, from the given question,

As the tenant usually disturbs the neighbors and argues, hence the landlady, Mrs, Larkin has the right to remove them, according to actual eviction.

6 0
2 years ago
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