Answer:
A stock (also known as equity) is a security that represents the ownership of a fraction of a corporation. This entitles the owner of the stock to a proportion of the corporation's assets and profits equal to how much stock they own. Units of stock are called "shares."
Stocks are bought and sold predominantly on stock exchanges (though there can be private sales as well) and are the foundation of many individual investors' portfolios. These transactions have to conform to government regulations that are meant to protect investors from fraudulent practices. Historically, they have outperformed most other investments over the long run. These investments can be purchased from most online stockbrokers
Explanation:
hope it helps
Answer:
135,000 shares
Explanation:
The stock split is the re-denomination of the shares where the number of shares increases without a corresponding increase in shareholders' equity.For instance assigning two shares for each share had earlier with two new shares priced at the price of previous one share,however in calculating the number of shares applicable to basic earnings stock split is treated retrospectively,as if it has always been part of the company's shares
Opening number of shares 60,000
add increase due to stock split(2*60,000)-60,000 60,000
new shares half-way through the year 30,000*6/12 15,000
Weighted average number of shares 135,000
Answer:
sales is $2,500,000
Explanation:
The target sales for the company to achieve a net income of $450,000 in the current year equals the net income plus variable cost plus the fixed costs.
To understand this better,let us use the net income formula:
net income=sales-variable costs-fixed costs
by changing the subject of the formula,we the formula for sales:
sales=net income+variable costs+fixed costs
variable costs=sales*70%=0.7 sales
sales=$450,000+$300,000+0.7 sales
sales-0.7 sales=$750,000
0.3 sales=$750,000
sales=$750,000/0.3=$2,500,000
Answer:
quantity discount
Explanation:
A quantity discount is a stimulus rendered to a buyer that brings about a decrease in cost per unit of goods or materials when purchased in greater numbers. A quantity discount is often rendered by sellers to attract customers to purchase in larger quantities.
The seller is able to sell off more goods or materials, and the buyer gets a more better pricing for them. At the consumer level, a quantity discount can appear as a BOGO (buy one, get one discount) or other incentives, such as buy two, get one free.
Answer:
Cost of equity = 10.7%
Explanation:
<em>We will work out the required rate of return using the the dividend valuation model. The model states that the value of a stock is the present value of the future divided discounted at the cost of equity.
</em>
The model is given below:
P = D× (1+g)/(r-g)
P- price of stock, D- dividend payable now, g- growth rate in dividend, r- cost of equity
So we substitute
130 = 5.50× (1+r)/(r-0.06)
cross multiplying
(r-0.06)× 130 = 5.50 × (1+r)
130 r- 7.8 = 5.50 + 5.50r
collecting like terms
130 r - 5.50r=5.50 + 7.8
124.5 r= 13.3
Divide both sides by 124.5
r =13.3 /124.5= 0.1068
r=0.1068 × 100= 10.7%
Cost of equity = 10.7%
