Answer:
correct option is a. decrease by $80,000
Explanation:
given data
stock dividend = 10%
common stock = $5
Chief = 80,000 shares
market value = $10
to find out
Chief's retained earnings will
solution
here retaining earning will be decrease by the maount of stock dividend that is
retaining earning = $80,000 × 10 % × $10
retaining earning = $80,000 × 0.10 × $10
retaining earning = $80000
so here correct option is a. decrease by $80,000
Answer:
7,000 units
Explanation:
Calculation for the number of units set forth in the production budget, representing total production for the current period
Using this formula
Number of units =Current period +Ending inventory - Beginning inventory
Where,
Current period =7,000 units
Ending inventory=400 units
Beginning inventory =400 units
Let make plug in the formula above
Number of units =7,000 units + 400 units-400 units
Number of units =7,000 units
Therefore the Number of units will be 7,000 units
Answer:
2. Limited supply would increase the price
Explanation:
In the given case the vendor sells in advance four thousand units for $300. While the installed capacity of the factory being to produce 1000 smartphones every month.
Expected sales being 500 units per month.
During the first few months, since the seller has already successfully sold 4000 smartphone units, high demand for the smartphones is evident.
Since the supply is limited to 1000 units only in a month and the quantity demanded being more as is evident by 4000 units being pre sold, during the initial phase, this would create a high demand.
And since the supply is limited, the seller will have to increase the price as the demand is lot more.
Answer:
WACC = ke(E/V) + Kd(D/V)
WACC = 15(0.40) + 9(0.60)
WACC = 6 + 5.4
WACC = 11.4%
Explanation:
WACC is a function of cost of equity multiplied by the proportion of equity in the capital structure plus cost of debt multiplied by the proportion of debt in the capital structure. The proportion of equity in the capital is expressed as E/V (0.40) while the proportion of debt in the capital structure is expressed as D/V (0.60).
