Answer: 2.51
Explanation:
First, we calculate the number of shares that will be issued in order to raise $8.6 million at $40 a share. This will be:
= $8.6 million / $40
= 215,000
Since the firm currently has 540,000 shares of stock outstanding, the number of rights that a shareholder will need to purchase one new share of stock in this offering will be:
= 540,000 / 215,000
= 2.51
Answer:
"Decrease by 250" is the appropriate response.
Explanation:
The given values are:
Revised fixed cost,
= $150,000
Current selling price,
= $100
Current variable cost,
= $60
Current contribution will be:
= 
= 
= 
Now,
The revised BEP will be:
= 
On substituting the values, we get
= 
= 
hence,
= 
= 
Thus the above is the correct answer.
Answer:
b. are willing to buy at various prices.
Explanation:
The demand of good in economics is clearly the goods that people want and are ready to pay different prices for such goods.
The goods are valuable to different people depending upon their different needs and shall be of different satisfaction to different people.
People will pay for the good according to the capacity and need.
The demand of goods does not mean the number of goods to be bought when can be received free of cost. This is because that might include the un-necessary wants of a person, but not the real demand.
Answer:
The required adjusting entry would be to debit the Interest expense account and credit the Interest payable account
Explanation:
Following the Accrual accounting - an accounting method that revenue or expenses are recorded when a transaction occurs rather than when payment is received or made.
The company borrowed $10,000 from the bank at 5% interest. The loan has been outstanding for 45 days. At the end of a period, if required adjusting entry, the adjusting entry:
Debit Interest expense and Credit Interest Payable
