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NeTakaya
3 years ago
8

Donna formed a corporation several years ago by issuing 500 shares of stock. There are 10 shareholders, with the smallest shareh

older owning 25 shares, and Donna holding the most at 100 shares. The corporation needs additional cash, but the current shareholders do not wish to have any additional shareholders.
a. What are their options and what additional factors should the current shareholders consider in raising the additional cash?
b. What can Donna do to add additional shareholders, if anything?
Business
1 answer:
Stels [109]3 years ago
4 0

Answer:

A) If Donna's corporation will not accept new shareholders, they can raise money by issuing bonds or getting a bank loan.

B) Maybe the current shareholders don't want to divide their power within the corporation, so maybe Donna can convince them of issuing preferred stocks which does not give the new stockholders voting rights.

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Blaine Air Transport Service, Inc., providing air delivery service for businesses, has been in operation for three years. The fo
Valentin [98]

Answer:

Entries and their narrations are posted below

Explanation:

We will record assets and expenses on the debit as they increase during the year and will record liabilities and capital on the credit side as they increase during the year or vice versa.

February 1 (Paid $275 for rent of hangar space in February)

Rent (Expense)     Dr $275

Cash (Asset)                        Cr $275

February 2 (Purchased fuel costing $490 on account for the next flight to Dallas.)

Fuel (Expense)                             Dr $490

Accountt Payable (Liability)                            Cr $490

February 4 (Received customer payment of $820 to ship several items to Philadelphia next month.)

Cash (Asset)    Dr $820

Shipment (R)              Cr $820

February 7 (Flew cargo from Denver to Dallas; the customer paid $910 for the air transport)

Cash (A)   Dr $910

Ticket (R)              Cr $910

February 10 (Paid $175 for an advertisement in the local paper to run on February 19.)

Advertisement (E)    Dr $175

Cash (A)                              Cr $175

February 14 (Paid pilot $2,300 in wages for flying in January (recorded as an expense in January))

Wages payable (L) Dr 2300

Cash (A)                                Cr 2300

February 18 Flew cargo for two customers from Dallas to Albuquerque for $3,800; one customer paid $1,600 cash and the other asked to be billed.

Cash (A)                            Dr 1600

Account Receivable (A)   Dr 2200

Ticket (R)                                             Cr 3800

February 25 Purchased on account of $2,550 in spare parts for the planes.

Spares  (E)                    Dr 2550

Account Payable (L)                   Cr 2550

February 27 (Declared a $200 cash dividend to be paid in March.)

Retained Earnings (SE) Dr 200

Dividend Payable (L)                 Cr 200

8 0
3 years ago
At which inventory level is operations management considered to be doing an excellent job?
Natalka [10]

operations management is considered to be doing a great job when you are able to lead your crew and make sure all of the inventory is in order.
8 0
2 years ago
List the different elements of an apprenticeship
cupoosta [38]
1.Technical Certified/VRQ (Vocational related Qualification)

2.NVQ (National Vocational Qualification)

3.Key skills

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3 0
3 years ago
Great Lakes Steel Supply is losing significant market share and thus its managers have decided to decrease the firm's annual div
Colt1911 [192]

Answer:

There's an error in the numbers for this question; I found the correct one and pasted it below;

"Great Lakes Steel Supply is losing significant market share and thus its managers have decided to decrease the firm's annual dividend. The last annual dividend was $1.30 per share but all future dividends will be decreased by 2.75 percent annually. What is a share of this stock worth today at a required return of 15.5 percent? "

Explanation:

Use dividend discount model (DDM) to calculate the stock price

P0 = \frac{D0(1+g)}{r-g}

whereby,

P0 = Current price

D0 = Last dividend paid = 130

g = growth rate = -275% or -2.75 as a decimal

r = required return = 155% or 1.55 as a decimal

Next, plug in the numbers to the DDM formula above;

P0 = \frac{1.30(1-0.0275)}{0.155 + 0.0275} \\ \\ = \frac{1.2643}{0.1825} \\ \\ =6.9277

Therefore this stock is worth $6.93

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3 years ago
Name a profession which typically includes an apprenticeship as part of its training program
garri49 [273]
Carpentry has apprenticeship programs.
8 0
3 years ago
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