Answer:
We can find the capital gains yield from the following formula:
Capital Gains Yield = Increase or decrease in the share price divided by Original cost of the shares when purchased
By putting values
Capital Gains Yield = ($52 - $36)/$52 = -30.7%
Explanation:
We can see that there is a decrease in the share price and this is also evident form the capital gains yield formula.
Preferred stock, 11 percent, par value $13 per share, 5,000 shares authorized
During the year, the following transactions took place in the order presented:
a. Sold and issued 21,900 shares of common stock at $26 cash per share.
b. Sold and issued 2,800 shares of preferred stock at $30 cash per share.
c. At the end of the year, the accounts showed net income of $41,600. No dividends were declared.
Required:
Prepare the stockholders’ equity section of the balance sheet at the end of the year.
Answer and Explanation:
The preparation of the stockholder equity section is presented below:
Tandy Company
Balance Sheet (Partial)
Stockholders Equity :
Contributed Capital :
Common stock (21,900 shares × $6) $131,400
Preferred stock (5,000 shares × $13) $65,000
Additional Paid in Capital - Common stock (21,900 shares × $20) $438,000
Additional Paid in Capital - Preferred stock (5,000 shares × $17) $85,000
Total Contributed Capital $719,400
Add: Retained Earnings $41,600
Total Stockholders Equity $761,000
Answer:
80
Explanation:
According to the given situation, the computation of n is shown below:-
EXP[27.72δ]=2
δ =0.025
m = 1 ÷ 2
(1 + 0.025 ÷ (1 ÷ 2))^n ÷ 2 = 7.04
n ÷ 2 × ln(1.05)=ln(7.04)
n ÷ 2=40
n = 80
Therefore for computing the n we simply applied the above formula i.e. by considering all the information given in the question
Hence,the n is 80
To find the number of years it takes for an investment of $1 to increase to $7.04 at a nominal rate of interest numerically equal to δ and convertible once every two years, we can use the formula A = P(1 + r/m)^mt. Using this formula, we can solve for t by substituting the given values into the equation and solving for t using logarithms.
To find n, the number of years it takes for an investment of $1 to increase to $7.04 at a nominal rate of interest numerically equal to δ and convertible once every two years, we can use the formula:
A = P(1 + r/m)mt
Where A is the final amount, P is the initial investment, r is the nominal rate of interest, m is the number of times interest is compounded per year, and t is the number of years.
In this case, A = $7.04, P = $1, r = δ, and m = 2 (since it is convertible once every two years). Using this information, we can solve for t:
$7.04 = $1(1 + δ/2)2t
Divide both sides by $1:
7.04 = (1 + δ/2)2t
Take the logarithm of both sides:
log(7.04) = log((1 + δ/2)2t)
Apply the power rule of logarithms:
log(7.04) = 2t * log(1 + δ/2)
Divide both sides by 2 * log(1 + δ/2):
t = log(7.04) / (2 * log(1 + δ/2))
Plug in the value of δ to find the value of t.
Learn more investment here:
#SPJ3
Answer:
The correct answer is $1,370
Explanation:
The computation of net present value is shown below:-
For computing the net present value first we need to find out the present value of inflow
Present Value of Inflow of 3 Years at 9% = Net cash flow × Number of years
= $27,800 × 2.5313
= $70,370
Net Present Value = Present value of inflow - Initial Outflow
= $70,370 - $69,000
= $1,370
Therefore for computing the net present value we simply deduct the initial outflow from present value of inflow.
Answer: A. Widget workers agree a large wage decrease so that none of them will have to be laid off.
Explanation:
There are activities that affects supply function cost, like wages cost going down, pushing prices down as well. In this case, with everything else constant, when cost go down the productivity per factor increase, making it possible to produce the same quantity at a lower price, or to produce more at a same price
Answer:
Option (c) is correct.
Explanation:
Given that,
Beginning inventory = $90,000;
Ending inventory = $70,000;
Cost of goods sold = $968,000
Sales = $1,360,000
Average inventor:
= (Beginning inventory + Ending inventory) ÷ 2
= ($90,000 + $70,000) ÷ 2
= $160,000 ÷ 2
= $80,000
Inventory turnover is the ratio of cost of goods sold and average inventory.
Paul’s inventory turnover in 2020:
= Cost of goods sold ÷ Average Inventory
= $968,000 ÷ $80,000
= 12.1 times
Days in inventory:
= 365 days ÷ Inventory turnover ratio
= 365 days ÷ 12.1
= 30.16 or 30.2 days
Production 30,000 units 24,000 units
Machine-hours 15,000 hours 10,800 hours
Variable overhead cost per machine-hour: $12.00 $11.25
What is the variable overhead efficiency variance?
a. 51890 favorable
b. $34,830 unfavorable
c. $36.720 unfavorable
e. 512.240 unfavorable
Answer:
Variable overhead efficiency variance= $14,400 favorable
Explanation:
Giving the following information:
Budgeted Actual
Production 30,000 units 24,000 units
Machine-hours 15,000 hours 10,800 hours
Variable overhead cost per machine-hour: $12.00 $11.25
To calculate the variable overhead efficiency variance, we need to use the following formula:
Variable overhead efficiency variance= (Standard Quantity - Actual Quantity)*Standard rate
Variable overhead efficiency variance= (12,000 - 10,800)*12
Variable overhead efficiency variance= $14,400 favorable