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3 years ago

Punitive damages are damages imposed on the wrongdoer by the court as punishment for an unintentional tort.

Business

1 answer:

snow_lady [41]3 years ago

5 0

Answer:

False.

Explanation:

Punitive damages are the damages that a defendant pays in addition to actual damages. Punitive damages are awarded by a court when the defendant's behavior is found to be intentional or negligent.

In the cases of tort liability, the court applies punitive damages when defendants motif is proved to be intentional.

Therefore, the given statement is false, as the court impose punitive damages for intentional tort.

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Explain Labour turnover

koban [17]

Answer:

Labor turnover, also known as staffing turnover, refers to the ratio of a number of employees who leave a company through attrition, dismissal or resignation to the total number of employees on the payroll in that period. It's used for measuring employee retention.

Explanation:

7 0

4 years ago

On January 1, year 8, Crimson Corp., a closely held corporation, issued 5% bonds with a maturity value of $90,000, together with

Elina [12.6K]

Answer:

The amount Crimson should report for additional paid-in capital (or paid-in capital—excess of par) upon issuing the stock is $25,500.

Explanation:

Additional paid-in capital is the excess of market value of common stock over the face value of common stock. Therefore, the amount Crimson should report for additional paid-in capital can be calculated as follows:

Face value of common stock = Number of shares issued * Price per share = $1,500 * $3 = $4,500

Since if the bonds had been issued separately they would have sold at 102, this implies that the market value of the bonds is 102% of the face value of the bond. Therefore, we have:

Bonds market value = Bonds face value * 102% = $90,000 * 102% = $91,800

Market value of common stock = Combined cash amount - Bonds market value = $121,800 - $91,800 = $30,000

Therefore, we have:

Additional paid-in capital = Market value of common stock - Face value of common stock = $30,000 - $4,500 = $25,500

Therefore, the amount Crimson should report for additional paid-in capital (or paid-in capital—excess of par) upon issuing the stock is $25,500.

6 0

3 years ago

Which option most accurately explains what take-home pay is?

solniwko [45]

The answer is letter C

7 0

3 years ago

Pilot Company pays for two years of rent in advance. Recording this transaction would include a debit to:______.

Zarrin [17]

Answer:

prepaid rent

Explanation:

From the question we were informed about how a Pilot Company pays for two years of rent in advance.

Incase of Recording this transaction, it would include a debit to prepaid rent

debit to prepaid rent is one of the journal entry for prepaid rent, and a prepaid rent is usually pen down as asset and it gives the rent expenses in future time , since the Pilot Company pays for two years of rent in advance,debit to prepaid rent must be included when recording the transaction.

6 0

3 years ago

The A. J. Croft Company (AJC) currently has $200,000 market value (and book value) of perpetual debt outstanding carrying a coup

o-na [289]

Answer:

current market value = $800000, WACC = 7.5%
new WACC = 7.38%, Total value of firm = $ 813,008.13
stock price per share = $62.00
4750 shares

Explanation:

1) Calculate AJC's current total market value and weighted average cost of capital

current market value = value of equity + value of debt

= ( 10000 * $60 ) + $200000

= $800000

Weighted average cost of capital = ( weight of equity * cost of equity ) + ( weight of debt * cost of debt * ( 1 - tax rate )

= (75% * 8.8% ) + (25% * 6% * 0.6 ) = 7.5%

2) what would be AJC's new WACC and total value

WACC = ( weight of equity * cost of equity ) + ( weight of debt * cost of debt * ( 1 - tax rate )

= ( 60% * 9.5% ) + ( 40% * 7% * 0.6 ) = 7.38%

Total value of the firm =

= ( Cash flow after tax / WACC )

= (( 100000 * ( 1-40%)) / 7.38%

= 100000 * 0.6 / 7.38% = $ 813,008.13

3) Calculate the new stock price per share

new stock price = ( value of equity + change in debt ) / original number of outstanding shares

value of equity = weight of equity * firm value

change in debt =( weight of debt * firm value ) - initial debt value

Hence new stock price =

( 50% *$820000) + (( 50% * $820000)- $200000)) / 10000

= $62.00

4) calculate how many shares AJC would repurchase in the recapitalization

= original shares - Remaining shares

= 10000 - 5250 = 4750 shares

while ;

Remaining shares = value of equity / stock price = $336000 / $64 = 5250

original shares = 10000

3 0

3 years ago