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9966 [12]
3 years ago
12

Novak Corp. has had 4 years of net income. Due to this success, the market price of its 300,000 shares of $5 par value common st

ock has increased from $11 per share to $54. During this period, paid-in capital remained the same at $4,290,000. Retained earnings increased from $1,790,000 to $12,900,000. President E. Rife is considering either a 17% stock dividend or a 2-for-1 stock split.
He asks you to show the before-and-after effects of each option on retained earnings.
Retained earnings after stock dividend
Retained earnings after stock split
Business
1 answer:
Andre45 [30]3 years ago
6 0

Answer:

Retained earnings after stock dividend  = $10,146,000

Retained earnings after stock split = $12,900,000

Explanation:

1. Retained earnings after stock dividend amount is: 300,000*17%*54 = $2,754,000. The new balance of retained earnings is = $12,900,000 - $2,754,000 = $10,146,000

2. The retained earning after stock-split will not change and it is same as $12,900,000

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3 years ago
Heather and Alicia work at the same company, but in different departments. Heather is an individual contributor and she is respo
Alex Ar [27]

Heather is a Hourly employee and Alicia is a full-time Salary employee.

<h3>What is employee?</h3>

An employee is someone who works for someone else or a company in exchange for wages or other agreed-upon compensation. An employee is someone who works for McDonald's and is paid a certain amount of money for each hour worked.

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5 0
2 years ago
Shauna wants to buy a house and plans to rent the apartment located in the basement for extra income. The house has a purchase p
Anastaziya [24]

Answer:

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Explanation:

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8 0
3 years ago
It is sometimes difficult to determine whether large corporations such as the Carlyle Group, or Wall Street overall, are expandi
goldenfox [79]

Answer:

rent seeking company

Explanation:

Currently most large corporations operate as monopolies or oligopolies which gives them huge market power and they generally abuse of it.

Rent seeking happens when companies (usually very large companies) increase their profits without an increase in productivity.

Corporations seek higher rent usually through lobbyists that obtain political favors for them, e.g. lower taxes, grants, subsidies, or tariff protection.

6 0
4 years ago
you need a 20-year, fixed-rate mortgage to buy a new home for $210,000. Your mortgage bank will lend you the money at a 7.1 perc
Delicious77 [7]

Answer: $337,869.73

Explanation:

Find out the future value of $1,000 given an interest rate of 7.1%. If this amount is less than the future value of $210,000, the difference is added to the final payment to come up with the balloon payment.

The APR needs to be made periodic:

= 7.1% / 12

The $1,000 payment is an annuity so this can be calculated as:

= Annuity * ( ( 1 + rate) ^ number of periods - 1) / rate

= 1,000 * ( ( 1 + 7.1/ 12%) ²⁴⁰ - 1) / 7.1/12%

= $527,297.83

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= 210,000 * ( 1 + 7.1/ 12%) ²⁴⁰

= $865,167.56

Balloon payment will be:

= 865,167.56 - 527,297.83

= $337,869.73

3 0
3 years ago
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