Design Corporation has 400,000 shares of $10 par-value common stock issued and outstanding when the market price per share is $25 per share. By what amount will total equity increase when the company declares a 2:1 stock split

Answers

Answer 1

The declaration of a 2:1 stock split does not affect the total equity and so it will remain at $4,000,000 (800,000 x $5).

What is a 2:1 stock split?

A 2:1 stock split increases the number of shares outstanding by 2 times while the par value reduces by 2 times.

The net effect of a stock split is that the number of shares outstanding increases just as the par value and market value of the shares decrease.

Data and Calculations:

Common stock issued and outstanding = 400,000 shares

Par value of shares = $10 per share

Total equity = $4,000,000 (400,000 x $10)

A declaration of a 2:1 stock split increases the number of common stock outstanding from 400,000 shares to 800,000 shares (400,00 x 2).

The market price will reduce to $12.50 ($25/2) and the par value will reduce to $5 ($10/2).

Thus, the declaration of a 2:1 stock split does not affect the total equity and so it will remain at $4,000,000 (800,000 x $5).

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Related Questions

A ______________________ means that government spending and taxes are equal.

Answers

Answer:

A balanced budget means that government spending and taxes are equal.

An increase in the price level causes ______ to ______, which in turn reduces planned consumption.Multiple Choicenominal household wealth; fallnominal household wealth; risereal household wealth; fall

Answers

Answer:

real household wealth; fall

You need to revise your budget to meet your short-term goal of buying a new computer. you will need to budget $50 a month. how will you revise your budget to meet this goal?

Answers

To revise a budget to meet a goal is to compare cash flow(In flow and flow) in conjuction with the target one is expected to hit.

What is Budget Revision?

In simple terms this can be described as the act of checking and balancing the fund at hand currently with the suppposed amount to meeting a need and adjusting by cutting cost to meet this amount

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Answer:I could increase my discretionary spending to $365, which would allow me to spend $50 per month on my computer.

I could also reduce other expenses to compensate for the change. For example, I could replace my entertainment budget with a computer budget.

Explanation:

got it right

11. Explain the importance of having a formal lease and reading it thoroughly before you sign

Answers

Prior to signing a lease, a formal lease agreement should be initiated which defines all the terms and conditions of the lease so that the other party, that is, who is using the leased asset, cannot have any reason to deny the lease.

What is a lease?

A lease is a contract between two parties to use the owner's asset for an agreed time. The owner of an asset is known as the lessor and the person who uses the leased asset is known as the lessee.

A lease agreement should be in written format stating all the terms and conditions of using the leased asset. Before signing it, the lessee should read the contract, so that any false claim put by the lessor in the contract can be identified and then accept it by putting his/her signature. If there is no agreement, then the lessee might get denied the consideration and can also exercise a lien on the leased asset.

Therefore, a formal lease contract should be thoroughly read before signing by the other party.

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Every year, Harini receives a check from the company in which she owns stock. What is the name for these periodic distributions of profits to investors?


A.

the rate of return


B.

speculative investments


C.

dividends


D.

corporate bonds

Answers

Answer:

(C) Dividends is your yearly profit

The regional Federal Reserve Banks A. regulate banks in their regions. B. are not allowed to make loans to banks in their region. C. are each headed by a member of the Board of Governors. D. have more voting members on the FOMC than does the Board of Governors.

Answers

The Federal Reserve Bank's regional offices A. regulate banks in their regions.

What do the Fed branch offices do?

The Fed divides the U.S. into various districts and has a branch in each of these districts and regions.

These branches will regulate the banking industry in their region to ensure that they abide by the overall Fed policy.

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Jasper was the sales manager for three of his organization's retail outlets. What type of manager was he

Answers

It is correct to say that as a sales manager for three points of sales in his organization, Jasper was a staff manager.

What is staff management?

It corresponds to the process of leading work teams in different departments, being responsible for guiding and directing employees, in order to establish their responsibilities in an optimized and effective way.

Therefore, staff managers are responsible for leading departments generating consultancy and support for work development.

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A non-smoker that is 30 years old pays a 25% lower premium for life insurance than a smoker of the same age. If the smoker pays $125 per month for a $500,000 policy, how much does the non-smoker pay per month

Answers

The amount that the non-smoker pays per month for premium is $31.25.

What is the determinant of the premium?

Generally, in an insurance, the person that smokes will pay higher premiums for life insurance than a non-smoker.

Now, it is given that the non-smokers pays a 25% lower premium for life insurance, that is, 1/4 of the normal premium he is suppose to pay.

Because the smoker present a high risk, he will pay the full premium to cater for high risk situation on the policy.

Premium payable = $125 * 1/4

Premium payable = $31.25

Therefore, the answer is $31.25 for the non-smoker.

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Answer: $93.75

Explanation: Take 25% of $125 which is $31.25. Then subtract $31.25 from $125. This gives you the answer which is $93.75.

Which of the following is likely to shift the supply curve right?

Answers

Answer:

A technological improvement that reduces costs of production will shift supply to the right, so that a greater quantity will be produced at any given price. Government policies can affect the cost of production and the supply curve through taxes, regulations, and subsidies.

What are five things that will shift a supply curve to the right?

changes in non-price factors that will cause an entire supply curve to shift (increasing or decreasing market supply); these include

1) the number of sellers in a market,

2) the level of technology used in a good's production,

3) the prices of inputs used to produce a good,

4) the amount of government regulation, ...

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2. List what synergy is

Answers

Answer:

Synergy is the concept that the value and performance of two companies combined will be greater than the sum of the separate individual parts. If two companies can merge to create greater efficiency or scale, the result is what is sometimes referred to as a synergy merge. :)

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Arriving at a cost structure that is both profitable and hard for potential followers to match is called

Answers

Arriving at a cost structure that is both profitable and hard for potential followers to match is called a Price Minus.

What is a Price Minus?

A Price Minus is a pricing strategy that deducts some amount from the market price to attract more customers and increase profitability to the detriment of competitors.

A price minus can be used as a market penetration strategy.

Thus, using a price minus, a company can arrive at a cost structure that achieves profitability and deters potential competitors without instigating a price war.

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Over a period of years, Engineers' salaries have increased at a rate of 8.5% per year. If inflation has been 5.5% per year, what is the real, inflation-adjusted salary increase

Answers

Answer:

3% salary increase

Explanation:

simply 8.5%-5.5%

Debbie is a kindergarten assistant at Atkins' Elementary School. Since Debbie suffers from obesity, she is not able to use the chairs provided for teachers in the kindergarten rooms. Debbie requests a different chair, but her employer refuses. Debbie is protected under the Americans with Disabilities Act (ADA) only if:

Answers

Debbie is suffering from obesity which is not considered a disability under the Americans with Disabilities Act but if she proves that the obesity is occurred due to some psychological condition or disorder only then she can be protected under the concerned Act.

What is a disability?

Disability is an impairment condition of an individual where he/she is not able to perform some activities. It can be a physical or mental condition.

According to the Americans with Disabilities Act, if an employee is suffering from a mental or physical disability then he/ she should be provided with an appropriate setting of work like a wheelchair so that he/she can perform his/her duties well. The employer of the company should not be allowed to discriminate against the employees on the basis of their disabilities.

In the provided situation, the obesity problem suffered by Debbie would not be covered under the ADA Act but if she proves that the problem is caused to her due to some psychological disorder, only then it will be considered a disability under ADA.

Therefore, the obesity suffered by Debbie is not treated as a disability under ADA unless it caused her some kind of disorder.

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Chelsea bought a bond with a face value of $5,000. The bond has a term of 4 years. Chelsea bought the bond at a 3 percent discount from the face value. The bond pays 3 percent annual interest, and Chelsea will receive eight semiannual payments. When the bond is redeemed at maturity, the total return (profit) will be $
_____ .00. The total return on investment will be
______ %. (Round return on investment percentage to one decimal place.)

Answers

The total return of the bond will be a profit of $300 and the total return on investment (ROI) will be 6.18%.

What will be the total return and return on investment?

The profit made from the purchase of bonds is referred to as the return on bonds. The profit includes all capital gains (discounts obtained) and interest earnings till maturity.

[tex]\text{Face value} = 5,000\\\\\text{Purchase price} = 4,850 (5,000 \text{ x } 1 - 0.03)\\\\\text{Discount} = 150 (5,000 - 4,850)\\\\\text{Maturity period} = 4 years\\\\\text{Coupon rate} = 0.03\\\\\text{Interest payment = semi-annual}\\\\\text{Annual interest} = $150 ($5,000 \text{ x } 0.03)\\\\\\\text{Total profit at maturity} = $300 ($150 + $150)\\\\\\text{Total return on investment} = 6.18 \text{percent} (300/4,850 \text{ x } 100)[/tex]

As a result, when Chelsea redeems the bond at maturity, his total return (profit) will be $300.00 at 6.18 percent.

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Answer:

profit: $750

ROI: 15.5%

Explanation:

As a CEO, Olivia tries to empower lower-level managers to have some decision-making authority and encourage values and norms that facilitate change and innovation. Olivia is making the organization more ______.

Answers

Based on this information, Olivia is making the organization more organic, which is based on a management model focused on human development.

What is an organic organization?

It refers to an organizational management system that tries to reduce the degree of formality and impersonality that exists in the bureaucratic organization, including people from all organizational levels.

It emphasizes the social system and the initiative of the people, it has a highly adaptive structure and it allows changes and innovations to occur as quickly as necessary.

Therefore, we can conclude that based on this information, Olivia is making the organization more organic, which is based on a management model focused on human development.

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In the neoclassical view, the economy has a ___________________________ to move back to potential GDP.

Answers

The neoclassical view, the economy has a tendency to move back to potential GDP.

What is Neoclassical view?

Neoclassical theory explains that the amount or quantity of goods that is produced is directly dependent on the amount of the goods that is demanded and Supply.

This also influence the price and how it is consumed.

Therefore, The neoclassical view, the economy has a tendency to move back to potential GDP.

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Deanna needs a loan from the bank to open her new café. She offers her car
as collateral. What article of the UCC governs this transaction?
OA. 8
OB. 6
O C. 7
O D. 9

Answers

When car is kept as a collateral by Deanna against a loan for opening a café, this will be governed under the Article 9 of the UCC.

What are collaterals?

Collaterals are a form of security in the form of assets and having a monetary value, which is charged for by the financial institutions for grant of loan to the creditor as such.

Article 9 of UCC presides over the matters related to the matters where collaterals are offered against for grant of loans or advances.

Hence, option D says that Article 9 governs the loans over collaterals.

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Answer:

D. Article 9

Explanation:

Article 9 covers over secured transactions and Deanna makes this a secured transaction by offering her car if anything were to go wrong.

Mansi Inc. is considering a project that has the following cash flow data. What is the project's payback?

Answers

The payback period of the project that Mansi Inc. is considering given its cash flow data is 2.36 years.

What is the payback?

Payback calculates the amount of time it takes to recover the amount invested in a project from it cumulative cash flows.

Amount invested = -750Amount recovered in year 1 = -750 + 300 = -450Amount recovered in year 2 = -450 + 325 = -125Amount recovered in year 3 = -125 /350 = 36

payback = 2.36 years

Here is he complete question:

Mansi Inc. is considering a project that has the following cash flow data. What is the project's payback?

Year 0 1 2 3

Cash flows -$750 $300 $325 $350

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Who first identified cyclical patterns in the economy and created what is often referred to as ""the business cycle""?.

Answers

Answer:

Clemente Juglar.

Explanation:

On january 2, carlton, inc. , issued 100 shares of $10 par value common stock for cash of $10 per share.

Answers

The journal entry of the given case is present in the image below.

What is journal entry?

Journal entry is defined as a primary recording of the financial transactions. Transactions are named in an accounting journal that presents a debit and credit balances of the company.

According to the given information,

Number of shares issued = 100

Par value per share = $10

Issue price per share = $10

Then the amount of total Cash received is:

[tex]=\text{Issue Price Per Share} \times \text{Number of shares Issued}\\\\=\$10 \times 100\\\\=\$1,000[/tex]

Total par value would be $1,000. Therefore, the journal entry is listed in the image below.

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To be effective, control systems mustMultiple Choicebe based on subjective standards.focus on upward communication.be acceptable to top stockholders.use multiple approaches.

Answers

In order for control systems to be effective, they must use multiple approaches.

What is a control system?

Control system can be defined as a system of devices that are connected as a single unit, so as to manage, command, direct, control, or regulate the behavior of other systems or devices by using control loops, while providing a desired response.

In Engineering, it is very impoetant for control engineers to use multiple approaches in control systems, so as to make them effective.

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Which of the following is not included in the typical pattern of behavior for a poverty-stricken person? a. higher crime rate c. higher standard of living b. higher divorce rate d. higher chance of being a victim of crime please select the best answer from the choices provided a b c d

Answers

A person is poverty-stricken if they are considered to be very poor. A higher standard of living is not a typical pattern of behavior for a poverty-stricken person.

Who is poverty-stricken poverty?

A poverty-stricken person suffers from the effects of extreme poverty: Some beggars are impoverished and homeless.

There are few jobs for farmers who have moved to cities from poverty-stricken areas in search of work.

It is characterized by excessive indulgence,  low self-regulation, exploitation of others, and limited motivation and effort.

Therefore, Option C is the correct answer that is A higher standard of living is not a typical pattern of behavior for a poverty-stricken person.

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Answer:  C. higher standard of living

Explanation:

Allowance for Doubtful Accounts on the balance sheet Select one: a. is deducted from accounts receivable. b. increases the cash realizable value of accounts receivable. c. appears under the heading "Other Assets." d. is offset against total current assets.

Answers

Allowance for Doubtful Accounts on the balance sheet: is deducted from accounts receivable.

What is a doubtful account?

This is a term that is used to refer to the account receivable that could become what is known as a bad debt later on in the future.

When people make credit purchases, the doubtful account is very important for their statement.

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Which part of developing nations economies did the green revolution impact.

Answers

The green revolution helped increase food production, as well as benefiting wealthy farmers in developing countries.

What was the green revolution?

It was a process that instituted new technologies in agriculture, modernizing the means of production on a global scale. Some of the contributions were the development of agricultural machinery and genetically modified seeds.

Therefore, some countries such as Mexico and India have benefited from the green revolution, helping in the development of agriculture and economy.

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Heyo! ;D

Farming would be the answer you seek. Hope this helps!

L&L, a beverage company, has launched a new energy drink. It sponsors a marathon in the city as part of its promotional strategy. It also issues a press release about the sponsorship and persuades media reporters of different newspapers to print it. L&L is generating _______.

Answers

If it sponsors a marathon in the city as part of its promotional strategy. L&L is generating publicity.

What is publicity?

Publicity can be defined as a form of product awareness as it enables a company to create awareness or advertise their product to potential customers.

Monst companies tend to make use of publicity as a form of of brand promotion as well as sales promotion.

Therefore L&L is generating publicity.

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Who should never use jargon? a surgeon giving orders to her staff a coach telling a quarterback what play to use a plumber ordering parts from a supply store a computer repair person talking to a customer

Answers

A computer repair person talking to a customer should never use jargon.

What is Jargon?

Jargon is the specialized vocabulary that is connected with a specific field or activity. Jargon is typically used in a specific communicative context and may be difficult to understand outside of that context.

The context is usually a specific occupation, however jargon can exist in any in-group. This includes that a surgeon giving orders to her staff, a plumber ordering parts from a supply store, and a coach telling a quarterback what play to use.

A  computer repair person talking to a customer is not included in the use of jargon, as it does not require any specialized vocabulary in compare to the another examples given.

Therefore, option D is correct.

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What is a difficulty with using gold as money?

Answers

Answer:

Gold money lacks most of these: It's not very durable, is hard to transport, is easy to counterfeit and is a variable store of value

The possibility that errors in projected cash flows will lead to incorrect decisions is known as ______.Multiple select question.estimation riskmanagerial incompetenceguess and blessforecasting risk

Answers

The risk that inaccuracies in expected cash flows may lead to poor judgments is referred to as the forecasting risk.

What is the significance of risk forecasting?

This function is especially critical for small enterprises, as inventory losses might threaten the company's future. Forecasting minimizes uncertainty.

But it comes at the cost of extra inventory, lower profits, and other unique hazards.

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Which is the most accurate summary of the differentiation between leadership and management that is most useful in the current environment

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The differentiation between leadership and management is: Management is about controlling variance and leadership is about initiating change.

What is Leadership and management?

Leadership has to do with influencing and implementing change that are needed while  management on the other hand has to do controlling and directing things so as to achieve the set goals.

Both Leadership and management are important in current enviroment as they both work hand in hand.

Therefore management is about controlling variance and leadership is about initiating change.

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_____ innovations pertain to the administrative domain in an organization. Group of answer choices Technology Strategy and structure Culture Product and service

Answers

Strategy and structure innovations pertain to the administrative domain in an organization.

What is organization structure?

Organizational structure are set of actions carried establised by an organization, which ultimately guide how they operate.

The structure shows how certain activities are directed in order to achieve the goals of an organization like roles and responsibilities.

Hence, strategy and structure innovations pertain to the administrative domain in an organization.

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