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3 years ago

A firm will often split the stock to keep the stock price within a proper trading range.

Business

1 answer:

Dominik [7]3 years ago

4 0

Answer:

a. True

Explanation:

Many times a corporation might carry out a stock split in order to prevent the price of its stock to become too expensive. E.g. when Apple's stocks get too expensive, stock splits occur, The last occasion the split stocks was 7:1, i.e. for every existing Apple stock, 6 new ones were issued.

This occurs because if the price of the stock is too high, it will be harder for small investors. Remember that the total capitalization is not affected by a stock split.

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If the Federal Open Market Committee decides to increase the money supply, then the Federal Reserve Group of answer choices crea

Westkost [7]

Answer:

creates dollars and uses them to purchase various types of stocks and bonds from the public.

Explanation:

The Federal Reserve System ( popularly referred to as the 'Fed') was created by the Federal Reserve Act, passed by the U.S Congress on the 23rd of December, 1913. The Fed began operations in 1914 and just like all central banks, the Federal Reserve is a United States government agency.

Generally, it comprises of twelve (12) Federal Reserve Bank regionally across the United States of America.

If the Federal Open Market Committee decides to increase the money supply, then the Federal Reserve creates dollars and uses them to purchase various types of stocks and bonds from the public.

4 0

3 years ago

Walter Utilities is a dividend-paying company and is expected to pay an annual dividend of $2.05 at the end of the year. Its div

Sonja [21]

Answer:

The expected rate of return is 14.29%.

Explanation:

The re-arranged equation of DDM for Expected Rate of Return is given below:

Expected Rate = (Next Year Dividend / Current Stock Price) + Growth Rate

where

Next Year Dividend is Current Year Dividend * (1 + growth rate)

⇒ Next Year Dividend = 2.05 * (1 + 6.50%) = $2.18.

All the other values are given in the question. Simply put those values in the equation:

⇒ Expected Rate of Return = (2.18 /28) + .065 = .1429 = 14.29%.

4 0

3 years ago

"Alan Meer inherits a hotel from his grandmother, Mary, on February 11 of the current year. Mary bought the hotel for $730,000 t

Vlad1618 [11]

Answer

The answer and procedures of the exercise are attached in the following image.

Explanation

Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.

3 0

4 years ago

Beacon Roofing's bank statement shows a bank balance of $43,267. The statement shows a bank service charge of $80 and a note

EleoNora [17]

Answer:

The Beacon Roofing's book balance should be adjusted by a total of $43,977

Explanation:

For computing the right amount of book balance, the following adjustments are required which is shown below:

1. Bank Balance = $43,267

2. Less - Bank service charge = - $80

3. Add: Notes collection = $790

So, the adjusted book balance equals to

= Bank balance - Bank service charge + notes collection

= $43,267 - $80 + $790

= $43,977

The notes collection is an income so it is added whereas the bank service charge is an expense so it would be deducted.

Hence, the Beacon Roofing's book balance should be adjusted by a total of $43,977

6 0

4 years ago

Identify each statement as true or false.

Fofino [41]

Answer:

true water and the other day and the other

8 0

3 years ago