Answer:
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Answer:
The journal entry for the sale of the shares is as:
Explanation:
Cash A/c.......................Dr $4,000
Treasury Stock A/c......Cr $4,000
As there is sale of stock, so the corporation is receiving the cash and any increase in the asset is debited. Therefore, the cash account is debited. And the stock is going out of the business, then decrease in stock is credited. Therefore, the treasury stock account is credited.
Working Note:
Cash = Number of Shares × Price per share
= 1,000 × $4
= $4,000
$450,000 x 1.08 x 1.08 x 1.08 = $566,870. The 1.08 is obtained by multiplying 100% by 8% appreciation for 108%. Then multiply that by 1.08 after conversion to a decimal.
Add 1 to the appreciation rate, represented as a decimal, to determine the appreciated value. As an illustration, multiply 1 by 0.08 to get 1.08 for an annual appreciation rate of 8%. Raising the outcome to the nth value, where n is the anticipated number of years Raise 1.08 to the fifth power, or divide it by 5, to determine the appreciated value in the example five years from now. The answer in this case is 1.47.
a property's or other asset's increasing value. The majority of property depreciates, thus it is rather uncommon to talk of a property's appreciated value. Real estate and stocks are two notable exceptions, as real estate usually increases in value over time while securities' value can fluctuate based on market conditions. Capital gains or property taxes may be computed using the increased value.
To learn more about appreciation value from the given link.
brainly.com/question/12724954
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Answer:
d. preemptive right
Explanation:
Preemptive rights refers to the clause that is included in a merger agreement or security that allows an investor to buy a proportionate number of shares to be issued in the future in order to protects him from losing his percentage ownership of a company.
The aim a preemptive right is to avoid a situation whereby the management of the company take over the control of the company by issuing and buying extra shares of the corporation to themselves. It basically aims to prevent the dilution of the value of stockholders.
Answer:
$98.02
Explanation:
Data provided in the question:
Value of contract = $1,330
Maximum value = $86
Minimum value = $65
Exercise price = $78
Risk-free rate = 3%
Now,
Current value of stock =
also,
a standard contract has 100 shares
thus,
Call price = Value of contract ÷ 100 shares
or
Call price = $1,330 ÷ 100 = $13.30
Thus,
Current value of stock =
or
Current value of stock = ( 2.625 × $13.30 ) + $63.1068
= $98.0193 ≈ $98.02