Explain the difference between the proportional method and the incremental method of allocating the proceeds of lump-sum sales of capital stock.

Answers

Answer 1

Answer:

When a company sells different securities together (this usually happens during mergers and acquisitions):

and the price of all the securities is not certain, the incremental method will first allocate proceeds to the sale of securities whose price is actually certain. The remaining proceeds will be allocated to the securities whose price is uncertain. E.g. total sales $10 million, stocks worth $5 million were sold and bonds worth ? million were sold. The company will allocate $5 million to stocks and $5 million to bonds. and the price of all the securities is certain, the proportional method allocates the sales proceeds proportionally among the different securities sold. E.g. total sales $10 million, stocks worth $5 million were sold and bonds worth $3 million were sold. The company will allocate ($5/$8) x $10 million = $6.25 million to stocks and $3.75 to bonds.


Related Questions

1. Ebrima Kanteh works as a supervisor for an engineering company in Riyadh, Saudi Arabia. In the UK he had a reputation for speaking his mind and by doing so getting the best out of his staff. At the current project in Riyadh he supervises 12 British staff and nearly 50 Saudi staff. After a few months Ebrima has become increasingly frustrated by what he sees a less than effective Saudi team. Their lack of competence and slow work pace is worrying George. What should he do to try and bring the Saudi staff back into line?

Answers

Answer:

Mostly this question is kind of your opinion, there is a lot of sulutions but you can pick your answer since it is not any option qusion

Explanation:

SAME AS UP

2020 $254000 overstated $200000 overstated 2021 121000 understated 79500 understated Assume that purchases were recorded correctly and that no correcting entries were made at December 31, 2020, or at December 31, 2021. Ignoring income taxes, by how much should Sheridan's retained earnings be retroactively adjusted at January 1, 2022

Answers

Answer:

$241,500 (Understated)

Explanation:

Calculation for how much should Sheridan's retained earnings be retroactively adjusted at January 1, 2022

Retained earnings = $121,000 (Understated) + $200,000 (Understated) - $79,500 (Overstated)

Retained earnings = $241,500 (Understated)

Therefore by how much should Sheridan's retained earnings be retroactively adjusted at January 1, 2022 will be $241,500 (Understated)

jervis sells 3400 of its accounts receivable to northern bank in order to obtain necessary cash northern bank charges a 2% factoring fee what entry should jervis make to record the transaction

Answers

Answer:

Factoring fee = 2% * Account Receivable

= 2% * $3,400

= $68

Date  Account Titles and Explanation     Debit    Credit

          Cash                                                   $3,332

          Factoring expenses                           $68

                    Account receivables                             $3,400

          (To record the receipt of cash against the receivables)

A corporate bond matures on October 31, 2035. Its coupon rate is 5.00% and face value is $100. Its yield is 5.90%. How much is its price on June 3, 2020

Answers

Answer:

Its price on June 3, 2020 is $90.70.

Explanation:

The price of the Bond is its Present Value (PV) .

You need to determine first the number of years between June 3, 2020 and October 31, 2035. Draw a timeline to be accurate. There are 16 years and 5 months.

Next, we can calculate the price using time value of money techniques.

N = 16.4

PMT = $100 × 5.00% = $5

P/Yr = 1

FV = $100

IRR = 5.90%

PV = ?

Using a Financial calculator to input the values as above, the price of Bond on June 3, 2020 is $90.70.

Five thousand shares of treasury stock of Marker, Inc., previously acquired at $14 per share, are sold at $20 per share. The entry to record this transaction will include a:_________ a) debit to Treasury Stock for $70,000 b) debit to Paid-in Capital from Treasury Stock for $30,000 c) credit to Treasury Stock for $100,000 d) credit to Paid-in Capital from Treasury Stock for $30,000

Answers

Answer:

d) credit to Paid-in Capital from Treasury Stock for $30,000

Explanation:

The entry for profit in sale of treasury stock is as computed below

Account Details                               Debit      Credit

Cash (5000*20)                              $100,000

     To treasury stock (5000*14)                      $70,000

     To Additional paid in capital (5000*6)      $30,000

What is the degree of alignment between what Netflix is currently
doing (actions) and their mission, vision, values, structure, and culture.

Answers

I’m sorry I gave up 85 points on accident

A common test for employment at Ergon Inc., a cake factory, is a strength requirement test. This would be an example of

Answers

Question Completion:

Multiple Choice

disparate impact.

reasonable accommodation.

quid pro quo.

internal discrimination.

disparate treatment

Answer:

This would be an example of:

internal discrimination.

Explanation:

Discrimination may result from one's race, gender, sex, pregnancy, ethnic or social origin, color, sexual orientation, age, disability, religion, conscience, belief, culture, etc.  Most discrimination practices arise from the different identities of the parties involved.  Discrimination causes ethical and legal dilemmas for the parties and may limit benefits or opportunities to persons.

Employment is a contractual relationship between two parties in which one party is the employer and the other is the employee.

Internal Discrimination

Individuals or groups of dwellers are treated differently because of their race, color, national origin, religion, sex, age, marriage and parental status, disability, sexual orientation, or genetic information.

To know more about Discrimination, refer to the link:

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Consider the one-factor APT. The standard deviation of returns on a well-diversified portfolio is 18%. The standard deviation on the factor portfolio is 16%. The beta of the well-diversified portfolio is approximately:_________
Consider the single-factor APT. Stocks A and B have expected returns of 15% and 18%, respectively. The risk-free rate of return is 6%. Stock B has a beta of 1.0. If arbitrage opportunities are ruled out, stock A has a beta of:__________

Answers

Answer and Explanation:

The computation is shown below:

1. For Beta^2

= Standard Deviation of Well Diversified Portfolio^2 ÷ Standard Deviation of factor Portfolio^2

= (18%^2 ÷ 16%^2)^0.5

= 18 ÷ 16

= 1.125 or 1.13

And,

2. Expected Return = Risk free rate + Beta ×Factor

18% = 6% + 1 × F

F = 12%

The Beta of A is

= (15% -  6%) ÷ 12%

= 0.75

We simply applied the above formula so that the correct value could come

And, the same is to be considered

Equivalent Units of Materials Cost The Filling Department of Eve Cosmetics Company had 4,200 ounces in beginning work in process inventory (40% complete). During the period, 70,400 ounces were completed. The ending work in process inventory was 3,500 ounces (20% complete). What are the total equivalent units for direct materials if materials are added at the beginning of the process

Answers

Answer:

71,100 units

Explanation:

I assume this question is using the Weighted Average Cost Method.

When using the Weighted Average Costs Method, we are interested in the output units. That is where we get the equivalent units.

Calculation of Equivalent Units for direct materials :

Completed and transferred (70,400 × 100%)    = 70,400

Ending Work In Process (3,500 × 20%)             =      700

Total Equivalent Units for direct materials        =   71,100

TB MC Qu. 18-81 (Algo) C. Worthy Ships initially issued... C. Worthy Ships initially issued 490,000 shares of $1 par stock for $2,450,000 in 2021. In 2023, the company repurchased 49,000 shares for $490,000. In 2024, 24,500 of the repurchased shares were resold for $392,000. In its balance sheet dated December 31, 2024, C. Worthy's treasury stock account shows a balance of:_____.

Answers

Answer:

$245,000

Explanation:

Calculation for what Worthy's treasury stock

Account Balance will show

Based on the information given the year 2023 treasury stock repurchase that was made will be debited with the amount of $490,000 and Since we were told that half of the treasury stock was resold the amount of $245,000 (490,000*50%) will be credited to treasury stock while the amount of $147,000 ($392,000-$245,000) will be credited to Paid-in capital share repurchase

Treasury stock account balance=($490,000 - $245,000)

Treasury stock account balance=$245,000

Therefore C. Worthy's treasury stock account shows a balance of: $245,000

A company's most recent free cash flow to equity was $100 and is expected to grow at 4% thereafter. The company's cost of equity is 13%. Its WACC is 7.77%. What is its current intrinsic value

Answers

Answer:

Current intrinsic value - equity = $1155.56

Explanation:

FCFE or Free cashflow to equity is the free cash flow attributable to the equity holders. Using the constant growth model of FCFE we can calculate the intrinsic value of the equity or intrinsic value per share. The formula for the constant growth model is as follows,

Value of equity = FCFE0 * (1+g)  /  (r - g)

Where,

FCFE0 is the most recent FCFEg is the growth rate in FCFEr is the required rate of return on equity

Current intrinsic value - equity = 100 * (1+0.04)  /  (0.13 - 0.04)

Current intrinsic value - equity = $1155.56

i.
Describe and discuss features of the occupational
environment
ii.
Describe and discuss ways in which these features
affect learning processes and/or application of
learning
Secto
niention
ro​

Answers

Physical surroundings are where people learn, work, and play. The physical environment is where people live. Air, water, housing, and transportation are all ways humans interact with their physical environment.Culture determines how an organization runs. Everything from your official processes to your informal habits to your basic values builds your company's image. The fundamental aspect of a company's culture is the norms and practices that exist inside the workplace.Working conditions; The phrase "working circumstances" is used to describe the physical setting in which an employee performs their duties and other elements of their terms of employment. It encompasses health and safety, employee happiness, work-life balance, job scheduling, and time allocation.

The physical environment has a profound impact on the learning process since it is most conducive to concentration in a quiet setting. In a similar vein, additional factors will have an impact.

This is further explained below.

What is the occupational environment?

Generally,  the physical and social environment of the job." To put it simply, the social environment is the aggregate of people's social connections, their immediate physical surroundings, and the norms and values of the larger society in which they live.

In conclusion,  features of the occupational environment include

Physical environment: People study, work and have fun within their physical environments. The physical environment is where people live. The air that people breathe, the water that they drink, the dwellings that they live in, and the modes of transportation that they have access to in order to go to work and school are all ways in which people engage with their physical environment.

Company culture: The way a company operates is a reflection of its culture. It's everything from your official procedures to your informal practices to your core principles that comes together to build the impression your company makes on its workers and consumers. The fundamental aspect of a company's culture is the norms and practices that exist inside the workplace.

Working conditions;  The phrase "working circumstances" is used to describe the physical setting in which an employee performs their duties and other elements of their terms of employment. It includes issues like health and safety at work, employee satisfaction, and work-life balance, as well as the scheduling of tasks and the allocation of free time.

These features will affect the affect learning processes as the Physical environment will cause a significant effect on the learning process as learning is best done in a serene environment. in the same vain other features will affect it.

Read more about  occupational environment

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When the economy is overheating and policymakers pursue contractionary fiscal policy, they express willingness to trade off _________ output for a ________ price level.a) higher;higher.
b) higher;lower.
c) lower;higher.
d) lower;lower.

Answers

Answer:

.a) higher;higher.

Explanation:

Economy overheating is an economic situation whereby the economy has a long time economic growth as well as activities, which as a result of this high level of inflation is recorded, then as the inflation linger the economy growth will be hindered and this can leads to recession in the country. It should be noted that When the economy is overheating and policymakers pursue contractionary fiscal policy, they express willingness to trade off higher output for a higher price level

If all these workers have the same level of skill, why does worker 3 have a LARGER marginal product than worker 2

Answers

Answer:

According to the law of diminishing marginal returns, labor productivity will first increase as the total number of workers increase (due to synergy), but at some point, as more units of labor (or other factor) are used, their productivity will start to decrease and each unit added will yield a lower marginal return.

When you look at how teams work, when the first members start to work together, the outcome will be higher than if they worked individually. But if the team keeps growing, and the other factors of production remain the same, e.g. the number of computers remains at 3 but there are 4 team members, then the total output might increase but at a lower proportion (productivity decreased).

GIVING ALL MY POINTS AWAY FOR THIS, DUE IN A COUPLE HOURS


The term caveat emptor, a latin term, meaning let the buyer aware
how is this important to suppliers and businesses

Answers

I believe this term means that the buyer assumes the risk that a product may fail to meet expectations or have defects. In other words, the principle of caveat emptor serves as a warning that buyers have no recourse with the seller if the product does not meet their expectations.

Almaden Hardware Store sells two product categories, tools and paint products. Information pertaining to its 2021 year-end inventory is as follows:Inventory,by Product Category Quantity Per Unit Net Realizable Value Cost Tools:Hammers 100 $4.80 $5.30 Saws 180 9.80 8.80 Screwdrivers 280 1.80 2.40 Paint products: 1-gallon cans 480 5.80 4.80 Paint brushes 100 3.80 4.30 Required:
1. Determine the carrying value of inventory at year-end, assuming the lower of cost or net realizable value (LCNRV) rule is applied to (a) individual products, (b) product categories, and (c) total inventory.2. Assuming inventory write-downs are common for Almaden, record any necessary year-end adjustment amount for each of the LCNRV applications in requirement 1.

Answers

Answer:

Product category        units           cost          NRV   year-end inventory

Tools:

Hammers            100           $4.80        $5.30           $480Saws                    180          $9.80        $8.80          $1,584Screwdrivers       280          $1.80        $2.40            $504

Paint products:

1-gallon cans      480            $5.80      $4.80         $2,304Paint brushes     100            $3.80       $4.30            $380

1) carrying value of year-end inventory:

Tools:                        

Hammers            $480Saws                  $1.584Screwdrivers       $504sub-total            $1,573

Paint products:         $2,568

1-gallon cans    $2,304Paint brushes      $380sub-total           $2,684

Total                          $5,252

2) adjustment to tools:

Dr Cost of goods sold 180

    Cr Inventory: tools 180

adjustment to paint products:

Dr Cost of goods sold 480

    Cr Inventory: paint products 480

or

total adjustment to inventory account:

Dr Cost of goods sold 660

    Cr Inventory 660

Explain the difference between the law of diminishing marginal returns and the law of dininishing marginal rate of techinal substitution.

Answers

Answer:

The primary difference between those two concepts is focus that each term has. The first one focus on the relationship between the level of production and the level of return. While the second one focus on the relationship between the level of production and the amount of factors used for that production.

Explanation:

One the one hand, the law of diminishing marginal returns is a concept known in the microeconomics theory due to the fact that it establishes the relationship between the productivity and the income for every aspect of it. Meaning that, when the productivity increases because of the increase of only one factor of production then the income will start to slowly decrease, confirming that when only one factor is increased the production will start to be incomplete and the return will decrease for that.

On the other hand, the law of diminishing marginal rate of technical substitution indicates the relationship between the level of output and the different factor used to produce. Meaning that, it shows how to keep the level of output the same while making changes in the amount of factors used.

Insurance, background checks, and security plans are all categories of ____________. policies procedural controls procedures policy controls

Answers

Answer:

procedural controls

Explanation:

Insurance can be defined as a means through which an individual or organization gets protected from financial losses, damages, death or illness after paying a premium.

Generally, insurance companies across the globe charge millions of their customers (insured) premiums every year. This gives them the privilege of having a pool of cash which can be used to cover the cost of losses and destruction to the asset of a small fraction or percentage of its customers.

This simply means that, since insurance companies collect premium from all of their customers for losses which may or may not occur, so they can easily use this cash to compensate or indemnify for losses incurred by those having high risk.

Procedural controls can be defined as a set of steps taken in order to ensure that the information provided are true.

Hence, insurance, background checks, and security plans are all categories of procedural controls.

The long-term trend only Least-Squares Regression Model is the same as a simple linear regression with time (t) as the independent variable and our time series (Yt) as the dependent variable.

a. True
b. False

Answers

Answer: a. True

Explanation:

The simple linear regression model is;

y = mx + c

Where,

y = dependent variable

m is the slope

x is the independent variable

c is the y- intercept

The long-term trend only Least-Squares Regression Model also follows the same format except y becomes Yt and x becomes t.

The long-term trend only Least-Squares Regression Model is therefore the same as a simple linear regression only with different variable terms.

True or False? The placement of a product within a store, or online, can determine the sales performance of that product.

Answers

F

Product Placement. a form of advertising in which name brand goods are placed in sports & entertainment programs. embedded marketing.

Answer:

true

Explanation:

Social security and medicare are progressive taxes. payroll taxes. local taxes. corporate taxes.

Answers

Answer:

payroll taxes

Explanation:

just took the test, got 100%

Social security and medicare are type of payroll taxes.

What are payroll taxes?

Payroll taxes are taxes paid by an employees form his or her salary.

The tax can be deducted or removed directly from the salary or wages of the employee and it is removed based on the amount of salary or wages in pay roll.

Therefore, payroll taxes includes social security and medicare.

Learn more on Payroll taxes here,

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Bill Dukes has $100,000 invested in a 2-stock portfolio. $35,000 is invested in Stock X and the remainder is invested in Stock Y. X's beta is 1.50 and Y's beta is 0.70. What is the portfolio's beta?

Answers

Answer:

The portfolio's beta is 0.98

Explanation:

Stock beta id the weghted average beta of a portfolio, Use following formula to calculate the portfolio beta

Portfolio beta = ( Beta of stock X x Weight of Stock X ) + ( Beta of stock Y x Weight of Stock Y )  

As per given data

Stock ______ Amount Invested ______ Beta

X _________ $35,000 _____________ 1.50

Y _________ $65,000 _____________ 0.70   ( $100,000 - $35,000 )

Placing values in the fromula

Portfolio beta = ( 1.50 x $35,000/$100,000 ) + ( 0.70 x $65,000/$100,000 )

Portfolio beta = 0.525 + 0.455

Portfolio beta = 0.98

The expected return on the market portfolio is 13%. The risk-free rate is 6%. The expected return on SDA Corp. common stock is 12%. The beta of SDA Corp. common stock is 1.50. Within the context of the capital asset pricing model, _________.A) SDA Stock is underpricedB) SDA stock is fairly pricedC) SDA Corp. stock's alpha is

Answers

Answer: C) SDA Corp. stock's alpha is -4.5%

Explanation:

Calculate the required return using the Capital Asset Pricing Model.

= risk free rate + beta ( market return - risk free rate)

= 6% + 1.5 (13% - 6%)

= 6% + 10.5%

= 16.5%

The expected return on the stock is 12% yet the required return is 16.5%. This means that this stock is overpriced because it is giving a return less than what it should be giving.

The alpha is therefore;

= Expected return - Required return

= 12% - 16.5%

= - 4.5%

5. If you wanted to show how many employees at your office ride a bicycle to work in comparison to the

number of employees who drive a car, take public transportation, or walk, what visual would be best?

Answers

Answer:

a bar graph

Explanation:

A bar graph may be defined as a visual representation of the categorical data or information which is represented by rectangular shape bars with their lengths or height proportional to the values they represent. A bar graph is also known as bar charts.

The rectangular bars can be plotted either vertically or horizontally.

In the context, a bar graph or a bar chart would be the best option to represent the number of employees who ride a bicycle and come to office and compare them to the number of employees who takes a public vehicle, drives a car or even come to office by walking.

Country A can produce 10 yards of textiles or 6 pounds of food per unit of input. Compute the opportunity cost of producing one additional unit of food instead of textiles.

Answers

Answer: 1.67 yards of textiles

Explanation:

The country can either produce 10 yards of textiles or 6 pounds of food. Opportunity cost of producing one additional unit of food instead of textiles will therefore be;

= 10/6

= 1.67 yards of textiles

This shows that for every pound of food produced, 1.67 yards of textiles are foregone.

Money that you owe is known as debt

Answers

Answer:

true

Explanation:

Emma is the team lead at a data analytics firm. She believes in encouraging her team members to fulfill their job responsibilities by rewarding them when they achieve their goals and punishing them when they don’t. Based on her leadership style, her team consistently meets company expectations. Based on the scenario, is Emma exhibiting transformational leadership? If you think she is, explain why by including and describing two specific types of transformational behavior based on the scenario. If not, explain how she can exhibit transformational leadership by including and describing two specific types of transformational behavior.

Answers

Answer:

Emma is not exhibiting transformational leadership style

Explanation:

As per the scenario mentioned in the question, it is noted that Emma is not exhibiting transformational leadership style instead this is an example of transactional leadership style.

In order to exhibit transformational leadership, Emma will need to motivate and encourage her employees to accomplish and adapt to change that help grow and achieve future success of the organisation. This can be done by setting an example at her level through developing a strong sense of corporate culture, independence and employee ownership in the workplace.

Another behaviour she could exhibit is by avoiding micromanagement. Instead she should train her employees to make decision on their own and take responsibility of their work. This way employees will have space to think creatively and will work to find solutions to the problems faced by them in their workplace.

7. Explain the importance of having sufficient 'working capital for his business to survive
and grow.

Answers

so that the business does not have to borrow money or take loans from banks

If GDP is expected to increase at a steady rate of 3% per year, how many years would it take for living standards to double

Answers

Answer:

24 years

Explanation:

In a situation where a country GDP which is fully known as GROSS DOMESTIC PRODUCT was been expected to increase or grow at a rate of 3% per year or per annual which means that it will actually takes up to 24 years for a country economy living standard to double .

Therefore the numbers of years it would take for a country living standards to double will be 23 years.

target debt-equity ratio of .40. Its cost of equity is 11.8 percent and its cost of debt is 6.5 percent. If the tax rate is 21 percent, what is the company’s WACC?

Answers

Answer:

9.90%

Explanation:

Debt-equity=debt/equity=0.40( debt=0.40 while equity is  1 since 0.40/1=0.40)

weight of debt=0.40/(0.40+1)=28.57%

weight of equity=1/(0.40+1)=71.43%

cost of equity=11.80%

cost of debt=6.50%

tax rate=21%

WACC=(weight of equity*cost of equity)+(weight of debt*cost of debt)*(1-tax rate)

WACC=(71.43% *11.80%)+(28.57%*6.50%)*(1-21%)

WACC=9.90%

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