All categories

3 years ago

If Baldwin issued 1000 shares of common stock at last year's end price, the effect on the balance sheet would be:_______

Business

1 answer:

lidiya [134]3 years ago

5 0

Answer: b. Equity would increase by $64,679

Explanation:

You included no figures from Baldwin's financials but the above is the only feasible answer.

When more Equity is issued as was the case here, Equity will increase not decrease (option A is therefore wrong).

Retained earnings are the portion of Net Income that are not paid out by the company as dividends and so have nothing to do with stock issuance which renders options C and D wrong.

Option B speaks of an increase in Equity and so is most likely correct.

You might be interested in

1. You are evaluating the purchase of HypeToys, Inc. common stock that just paid an annual dividend of $1.80. You expect the div

Arte-miy333 [17]

Answer:

$36.65

Explanation:

D1 = D*(1+g)

D1 = 1.8*(1+0.12)

D1 = 1.8(1.12)

D1 = $2.016

Price of stock P = D1 / (re - g)

Price of stock P = $2.016 / (0.175 - 0.12)

Price of stock P = $2.016 / 0.055

Price of stock P = $36.654545

Price of stock P = $36.65

So, $36.65 is the most that i will be willing to pay for the common stock if i am to purchase it today.

5 0

3 years ago

A public works department in a metropolitan area is looking into buying a major equipment to enhance productivity. The initial c

NARA [144]

Answer:

B. The payback is approximately three years

Explanation:

The computation of payback period for this equipment purchase is shown below:-

<u>Year Cash flow Cumulative cash flow</u>

0 -$600,000 -$600,000

1 $250,000 -$350,000

2 $200,000 -$150,000

($250,000 - $50,000)

3 $150,000 0

($200,000 - $50,000)

4 $100,000 $100,000

($150,000 - $50,000)

5 $50,000 $150,000

($100,000 - $50,000)

Here, Cumulative cash flow in the year o is -$600,000 and as we can see that cumulative cash flow in year 3 is 0.

Therefore the payback period lies in 3 years.

7 0

2 years ago

MagTech Inc. requires funding to build a new factory and has decided to raise the additional capital by issuing $850,000 face va

aleksley [76]

Attached screenshot has got your answer

6 0

3 years ago

As the president of a local trade company, Kristin is faced with leadership, ethical, and operational decisions on a daily basis

NISA [10]

Answer:

B. Information Management

Explanation:

According to Wikipedia, Information management is the collection and management of information from one or more sources and the distribution of that information to one or more audiences.

It is involves collecting, storing and managing information gotten in all its forms. Of course, there are various forms of information, whether physical or electronical or otherwise.

Kristen's Job in the company involves organizing resources info (collecting), regulating how they are used and making sure they are the necessary information needed by the company's workers which is all part of the information management process.

4 0

3 years ago

Which one of the following statements concerning net working capital is correct?

Luda [366]

Answer:

Explanation:

Net working assets is current assets less current liabilities

Current assets include cash, cash equivalents and inventory

Examples of current liabilities include accounts payables, short-term debt, accrued expenses, and dividends payable

When inventory is purchased with cash, inventory increases and cash reduces, thus there is no change in net working capital

Net working capital can be negative or positive.

If current assets is greater than current liabilities, it would be positive, if this is not the case, it would be negative.

7 0

2 years ago