Answer : It hopes to make more money available for loans.
Answer: a. additional paid-in capital to the extent that previous net "gains" from sales of the same class of stock are included therein; otherwise, from retained earnings.
Explanation:
When a stock is sold for higher than its par value, the additional value is recorded in the additional paid-in capital account as a gain to equity.
If a treasury stock is sold for less than its cost, the difference between the selling price and the cost will be deducted from the additional paid in capital account but the only amount that is deductible is the gain that the company has made so far from selling stock above their par value.
If the loss from the treasury stock is more than this gain, the remainder will be deducted from the retained earnings account.
If you were going to get a loan to purchase a new car, financial intermediary you would use is a commercial bank.
Financial intermediary is that entity that acts as an intermediary or the middlemen between the two parties during any financial transaction.
Financial intermediaries can be a commercial bank, an investment bank, pension fund or the mutual funds.
Commercial bank is that financial institution which offers different financial functions such as accepting deposits, offers various loans, offering checking account facilities, and also offers some basic facilities such as saving accounts to the customers.
It provides personal loans, mortgages, commercial loans to the customers.
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Answer:
$13,320
Explanation:
The computation of the warranty expenditure is shown below:
= Sales revenues × estimated warranty expenditure percentage
= $296,000 × 4.5%
= $13,320
By multiplying the sales revenues with the estimated warranty expenditure percentage we can get the warranty expense and the same is shown above
All other information which is given is not relevant. Hence, ignored it
Answer:
Number of units it can sell and the number of customers it can serve
Explanation:
The ultimate market constraint (limit) on the amount of pricing power that can be exercised by a monopoly firm is the <u>number of units it can sell and the number of customers it can serve.</u>
<u>Generally</u>.
The price-setting ability of a monopolist faces two kinds of constraints:
1. Number of Units: The monopolist's price setting ability is limited by capacity as cannot sell more than a given quantity of its products
2. Number of Customers: The monopolist is additionally unable to serve more than a given number of consumers.
These 2 factors constrains the pricing power of the monopolist
