Answer:
Debit retained earnings for $15.30 million.
Explanation:
As per the data given in the question,
Declaration of common stock dividend indicates no cash payments, only extra shares issued with rate of stock dividend
In this Rick Co. had 30 million shares and Rick Co. declared 1% stock dividend
which means 30 million × 1% = 0.30 million shares issued
Retained earning = (0.30 million × $51)
= $15.30 million
To common stock A/c = (0.30 × $1) = $0.30 million
To capital paid in access A/c = (0.30 million × ($51-$1)) = $15.00 million
( Being stock dividend was issued at 1% )
Hence, Option (d) Debit retained earning for $15.30 million is correct.
Answer:
C) 6 pounds of pork and 8 pounds of tomatoes
Explanation:
Explanation:
Labor hours to make 1 lb. of: lbs. produced in 24 hours
Pork Tomatoes Pork Tomatoes
Farmer 6 3 4 8
Rancher 4 4 6 6
If both decide to specialize in producing only one good, the farmer will produce 8 pounds of tomatoes per day and the rancher will produce 6 pounds of pork per day.
This way when the rancher trades 4 pounds of pork in exchange for 6 pounds of tomatoes, he is gaining 2 pounds of pork which is equivalent to 8 labor hours.
When the rancher trades 6 pounds of tomatoes in exchange for 4 pounds of pork, he is gaining 2 pounds of tomatoes which is equivalent to 6 labor hours.
Answer: Nothing
Explanation:
When Anastasia sells her Tesla common stock at the same time that Roman buys the same amount of Tesla stock, then Tesla will receive nothing.
Forur example, let's assume that Anastasia sells her Tesla common stock which was worth $2000 and Roman buys the same amount of Tesla stock, which was $2000. Then Tesla will get: $2000 - $2000 = 0. Therefore, the answer is nothing.
expectations about behavior and safety norms in the workplace.
Answer:
alitalia should do the forward hedge to hedge its transaction exposure
Explanation:
Alitalia can construct the money market hedge as follows
1. borrow Euro whose present value is equal to the amount to be paid.
2. convert it to foreign currency at the current spot rate.
3. place it in a deposit
4. make the payment when the deposit reaches maturity
PV of payment = 10000000/1.05
= 9523809.525
converting in to Euro at the spot rate we get 6802721.09 Euros
so Alitalia has to borrow the above amount and convert it and invest it at 5%.
now the payable amount from the loan is 6802721.09(1+0.03) = 7006802.72 Euros
Hence Alitalia has effective managed to locl in a forward rate of 1.427$/euros (10000000/7006802.72)$/euros
Therefore, alitalia should do the forward hedge to hedge its transaction exposure
