CBA Inc has 400,000 shares outstanding with a $5 par value. The shares were issued for $12. The stock is currently selling for $34. CBA has $5,000,000 in retained earnings and has declared a stock dividend that will increase the number of outstanding shares by 6%. How many shares will be outstanding after the stock dividend?
Answers
Answer:
The number of shares that will be outstanding after the stock dividend is 424,000 shares.
Explanation:
This can be calculated as follows:
Number of shares outstanding before the stock dividend = 400,000
Percentage increase in the number of outstanding shares after stock dividend = 6%
Number of increase in the number of outstanding shares after stock dividend = Number of shares outstanding before the stock dividend * Percentage increase in the number of outstanding shares after stock dividend = 400,000 * 6% = 24,000
Therefore, we have:
Number of shares outstanding after the stock dividend = Number of shares outstanding before the stock dividend + Number of increase in the number of outstanding shares after stock dividend = 400,000 + 24,000 = 424,000
Therefore, the number of shares that will be outstanding after the stock dividend is 424,000 shares.
Final answer:
After a 6% stock dividend, CBA Inc will have 424,000 shares outstanding. A stock dividend increases the number of shares but doesn't change the overall worth of the company.
Explanation:
CBA Inc currently has 400,000 shares outstanding. When a company declares a stock dividend, it increases the number of shares outstanding. In this case, the company is declaring a dividend that will increase the total shares by 6%. Therefore, to find the total shares after the dividend you multiple the current shares by 1.06 (the 1 accounts for the original amount and the 0.06 for the increase).
So, 400,000 shares * 1.06 = 424,000 shares
A key point to remember is that a stock dividend does not change the overall worth of the company, it simply divides the total value over more shares. Therefore, while the number of shares has increased, the value per share would decrease assuming the total value of the company remains the same.
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B) Objectives and Task Method As a result, the "objectives and task" method are regarded as one of the most logical budgeting strategies for advertising.
The objectives and goals of marketing and advertising are established using this strategy.
How does the objective task method work?
The objective task method, which is also known as the "objective and task" method, is a system in which a business decides how much money to put into its marketing budget based on specific goals rather than just on sales revenues or projections.
The competitive paritymethod works on the premise that competing businesses have comparable marketing objectives and rationally implement them. Therefore, if a competitor spends approximately 5% of net sales on advertising, the company will match that competitor's advertising budget.
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Answers
Answer:
The answer is D.
Explanation:
Net investment equals Gross investment minus depreciation.
Net investment equals Investment at the beginning of the year minus Investment at the end of the year.
Net investment = $105 million - $100 million.
Net investment = $5million.
Depreciation = 20% of investment at the start of the year
= 20% of $100million
= $20million.
Gross investment is therefore,
$5million + $20million
=$25 million
Answer:
Option D,$25 million is the correct answer.
Explanation:
The net investment formula can be used to compute gross investment by changing the subject of the formula as shown below:
Net investment = gross investment minus depreciation
Net investment =Closing capital stock minus opening capital stock
closing capital stock is $105 million
opening capital stock is $100 million
net investment=$105 million-$100 million=$5 million
Gross investment is unknown
depreciation=opening capital stock* depreciation %
depreciation=$100 million*20%
=$20 million
$5 million=gross investment-$20 million
gross investment =$5 million+$20 million
gross investment =$25 million
b. What is the safety stock they need to provide a 95% service level?
c. What is the order point the company should use?
Answers
Answer:
a) Average demand during the lead time = Sum of all the historical demand during lead time / Number of periods
= (55+75+75+70+80+60+50+70+60+85) / 10
= 680 / 10
= 68 gallons
b) Standard deviation of demand during lead time(\sigmadL) = 8.5 gallons
At 95% service level,value of Z = 1.65
Safety stock = Z(\sigmadL) = 1.65(8.5) = 14.03 gallons
c) Reorder point = Average demand during the lead time + Safety stock
= 68 + 14.03
= 82.03 gallons
Answers
Answer:
The remaining balance is
Units Unit Cost Total
1.250 $12 $15.000
3.552 $15 $53.280
Total=$68.280
Explanation:
LIFO Perpetual chart is attached.
It shows purchases, sales and balance of each period. To get the ending inventory cost we have to add the cost of all units in the last balance of the month.
That will be,
Units Unit Cost Total
1.250 $12 $15.000
3.552 $15 $53.280
Answers
Answer:
$141 million.
Explanation:
Given: Export= $200 million.
Import= $160 million.
Foreign aid received= $80 million
Payment to foreign citizen= $15 million
Earning from abroad= $36.
Now, computing current account balance.
Total current account=
X- export
M-Import
NI-Net income
NT-Net current transfer.
Net income=
⇒ Net Income=
∴ Net Income (NI)= $21 million.
Net Transfer (NT)= $80 million.
Current account=
∴ Current account balance is $141 million.
Answers
Answer:
The depreciation expense for 2017 is $14,400
Explanation:
Coronado Industries uses the units-of-production depreciation method to calculate Coronado Industries by the following formula:
Depreciation Expense = [(Cost of asset − Residual Value ) x Number of Units Produced]/Life in Number of Units
In the company,
Depreciation Expense per mile = ($108,800-$3,000)/132,250= $0.8
The truck was 18000 miles in 2017, so the depreciation expense for 2017:
18,000 x $0.8 = $14,400