Answer: b. The company issued common stock in 2015.
Explanation:
Common Stock is recorded at par value in the books and so the only things that can affect it are more stock being issued which would increase it or treasury stocks being purchased which would decrease it.
As the common stock increased in 2015 from 2014 by $1,000 more, it shows that the company issued $1,000 worth of stock in 2015.
<span>Market supply would decrease because costs of production would be higher</span>
Answer:
total value be in the stock $9,000
Explanation:
given data
currently priced = $90 per share
Number of Stocks = 100 share
solution
we get here first Value of Position that is express as
Value of Position = $90 × 100
Value of Position = $9,000
and
After stock split
Number of Stocks will be
Number of Stock = 100 × 3 = 300
and
Price per Share will be
Price per Share =
Price per Share = $30
so
Value of Position = 30 × 300
Value of Position = $9,000
Answer:
1. the prices of existing bonds would rise
Explanation:
General Interest rates and price of a bond are inversely related. The market interest rate also reflects an investors expected rate of return also referred to as yield to maturity i.e YTM.
Mathematically, price of a bond is the present value of it's future stream of coupon payments as well as principal repayments discounted at investors expected rate of return i.e YTM.
So, when market interest rates fall in general, this would lead to a rise in the price of bonds as general interest rates represent yield to maturity.