Honeycutt Co. is comparing two different capital structures. Plan I would result in 12,700 shares of stock and $109,250 in debt. Plan II would result in 9,800 shares of stock and $247,000 in debt. The interest rate on the debt is 10 percent. The all-equity plan would result in 15,000 shares of stock outstanding. Ignore taxes for this problem. a. What is the price per share of equity under Plan I

Answers

Answer 1

Answer: $47.50

Explanation:

The Price per share under Plan I can be calculated by the formula;

Price per share = Value of debt / (Number of shares under all-equity plan - Number of shares under Plan)

= 109,250 / ( 15,000 - 12,700)

= 109,250 / 2,300

= $47.50


Related Questions

The Bell Weather Co. is a new firm in a rapidly growing industry. The company is planning on increasing its annual dividend by 20 percent next year and then decreasing the growth rate to a constant 5 percent per year. The company just paid its annual dividend in the amount of $1 per share. What is the current value of a share if the required rate of return is 14 percent?

Answers

Answer:

Current value per share is $13.33

Explanation:

The two stage growth model of DDM can be used to calculate the price of the share today. The DDM values a stock based on the present value of the expected future dividends from the stock. The price of this stock under this model can be calculated as follows,

P0 = D0 * (1+g1) / (1+r)  +  [ (D0 * (1+g1) * (1+g2) / (r - g2)) / (1+r) ]

Where,

g1 is the initial growth rate which is 20% g2 is the constant growth rate which is 5% r is the required rate of return

P0 = 1 * (1+0.2) / (1+0.14)  +  [ (1 * (1+0.2) * (1+0.05) / (0.14 - 0.05)) / (1+0.14) ]

P0 = $13.33

The market capitalization rate for Admiral Motors Company is 8%. Its expected ROE is 10% and its expected EPS is $5. The firm's plowback ratio is 60%. a. Calculate the growth rate. (Input your answer as a nearest whole percent.) b. What will be its P/E ratio? (Do not round intermediate calculations.)

Answers

Answer:

(A) 6%

(B) 20

Explanation:

The market capitalization rate for Admiral motors is 8%

= 8/100

= 0.08

The expected ROE is 10%

= 10/100

= 0.1

The expected EPS is $5

The Plowback ratio is 60%

= 60/100

= 0.6

(A) The growth rate can be calculated as follows

= Plowback ratio × ROE

= 0.6 × 0.1

= 0.06×100

= 6%

Hence the growth rate is 6%

(B) The P/E ratio can be calculated as follows

= 1-0.6/0.08-0.06

= 0.4/0.02

= 20

Hence the P/E ratio is 20

Which of the following is true of external recruiting, compared to internal recruiting?
A. It encourages greater employee loyalty.
B. The process is cheaper.
C. The pool of talent is more limited.
D. It creates the need for multiple recruitments.
E. The process takes longer.

Answers

Answer:

The answer is E. The process takes longer

Explanation:

External recruitment is the process of announcing vacancies to the people outside ones organization while Internal recruitment is the process of announcing vacancies for the internal staffs only.

The process of external recruitment is usually longer and more expensive than internal recruitment. For example, payment to publish the vacancies in any national newspapers or payment for outsourcing company that specializes in recruitment.

Option A is wrong because external recruitment discourages employee loyalty.

Option B in incorrect because this is so for internal recruitment

For a 30% interest in partnership capital, profits, and losses, Carol contributes a machine with a basis of $40,000 and an FMV of $80,000. The partnership assumes a $70,000 recourse liability on the machine. At the time of the contribution, the partnership had recourse liabilities of $10,000. Partners share the economic risk of loss from recourse liabilities in the same way they share partnership losses. Following the contribution, Carol has:_______.
a) a capital loss due to the contribution of $6,000 and a zero basis in the partnership interest.
b) a capital gain due to the contribution of $6,000 and a zero basis in the partnership interest.
c) a $34,000 basis in the partnership interest and no gain or loss.
d) a $43,000 basis in the partnership interest and no gain or loss.

Answers

Answer: b) a capital gain due to the contribution of $6,000 and a zero basis in the partnership interest.

Explanation:

Since we are informed that Carol has 30% interest in partnership capital, profits, and losses and also contributes a machine with a basis of $40,000 and an FMV of $80,000 and the partnership assumes a $70,000 recourse liability on the machine.

Therefore, her capital gain will be:

= 30% × $20,000

= 0.3 × $20,000

= $6,000

Therefore, there will be a capital gain due to the contribution of $6,000 and a zero basis in the partnership interest.

Portions of the financial statements for Peach Computer are provided below. PEACH COMPUTER Income Statement For the year ended December 31, 2018 Net sales $1,825,000 Expenses: Cost of goods sold $1,060,000 Operating expenses 570,000 Depreciation expense 51,000 Income tax expense 41,000 Total expenses 1,722,000 Net income $ 103,000 PEACH COMPUTER Selected Balance Sheet Data December 31 2018 2017 Increase (I) or Decrease (D) Cash $103,000 $85,500 $17,500 (I) Accounts receivable 45,100 49,500 4,400 (D) Inventory 76,000 55,500 20,500 (I) Prepaid rent 3,100 5,200 2,100 (D) Accounts payable 46,000 37,500 8,500 (I) Income tax payable 5,100 10,500 5,400 (D) Required: Prepare the operating activities section of the statement of cash flows for Peach Computer using the indirect method

Answers

Answer:

PEACH COMPUTER

Cash flows from operating activities

For the year ended December 31, 2018

Cash flows from operating activities:

Net income                                                                   $103,000

Adjustments to net income:

Depreciation expense $51,000Decrease in accounts receivable $4,400Decrease in prepaid rent $2,100Increase in accounts payable $8,500Increase in inventory ($20,500)Decrease in income tax payable ($5,400)          $40,100

Net cash flows provided by operating activities        $143,100

Identify the normal balance (debit or credit) for each of the following accounts.

a. Fees earned (revenues)
b. Office supplies
c. Owner withdrawals
d. Wages expense
e. Account receivable
f. Prepaid rent
g. Wages payable
h. Building
i. Owner Capital

Answers

The normal balance (debit or credit) for each of the accounts are:

Assets with debit balances:

b. Office supplies

e. Accounts receivable

f. Prepaid Rent

h. Building

Normal balance

Based on double entry principle of accounting every debit entry must have a corresponding credit entry and every credit entry must have a corresponding debit entry.

Assets with debit balances:

b. Office supplies

e. Accounts receivable

f. Prepaid Rent

h. Building

Expenses or contra-equity accounts with a debit balance:

c. Owner withdrawals and d. Wages expense

Liability, revenue, and equity accounts with credit balances normal:

a. Fees earned

g. Wages payable

i. Owner capital

Inconclusion the normal balance (debit or credit) for each of the accounts are:  Assets with debit balances:

b. Office supplies

e. Accounts receivable

f. Prepaid Rent

h. Building

Learn more about normal balance here:https://brainly.com/question/13669524

Rick O'Shea, the only employee of Hunter Furniture Company, makes $30,000 per year and is paid once a month. For the month of January, his federal income taxes withheld are $180, state income taxes withheld are $37, social security is 6.2% on a maximum wages of $106,800, Medicare tax is 1.45%, State Unemployment Tax is 4.2%, and Federal Unemployment tax is .8%, both on a maximum wages of $7,000 per employee. What is the employer's payroll tax expense from Rick's paycheck

Answers

Answer: $316.25

Explanation:

The taxes paid by the employer are the Social Security taxes, Medicare taxes, Federal  unemployment taxes (FUTA) and State unemployment taxes (SUTA).

Rick makes $3,000 a year but is paid monthly.

= 30,000/12

= $2,500

= (6.2% * 2,500) + (1.45% * 2,500) + ( 0.8% * 2,500) + ( 4.2% * 2,500)

= 155 + 36.25 + 20 + 105

= $316.25

If a two-stock portfolio is equally invested in stocks with betas of 1.4 and 0.7, then the portfolio beta is:_______.
A. 0.70.
B. 1.05.
C. 1.40.
D. 2.10.

Answers

Answer:

Beta= 1.05

Explanation:

Giving the following information:

A two-stock portfolio is equally invested in stocks with betas of 1.4 and 0.7.

To calculate the Beta of the portfolio, we need to use the following formula:

Beta= (proportion of investment A*beta A) + (proportion of investment B*beta B)

Beta= (0.5*1.4) + (0.5*0.7)

Beta= 1.05

In social science, researchers generally use a _______ confidence level, but in natural science, researchers often use a ______ confidence level.

Answers

Answer: 95% ; 90%

Explanation:

Confidence level is used in research and it is the probability that a parameter's value falls within a particular range of values.

In social science, researchers generally use a 95% confidence level, but in natural science, researchers often use a 90% confidence level.

______ can be used by a manufacturing firm to generate computerized documents sent to the supply chain members to signal that products and materials need to be pulled.

Answers

Answer:

The answer is Application Programming Interface (API)

Explanation:

API is a virtual portal that allows tokenized set of data to be transmitted among many parties. By tokenize data and transmit through APIs, parties can get the required data quicker and more secured. In the example, computerized documents can be transmitted among supply chain members to signal that products and materials need to be pulled.

California Surf Clothing Company issues 1,000 shares of $1 par value common stock at $33 per share. Later in the year, the company decides to repurchase 100 shares at a cost of $36 per share. Record the purchase of treasury stock.

Answers

Answer:

Debit Treasury stock for $3,600

Credit Cash also for $3,600

Explanation:

A share repurchase which is also known as a share buyback refers to an act of buying back by a company of its own shares from the market.

A share repurchase is another flexible way thrrough which a company returns money back to shareholders.

The repurchase of California Surf Clothing Company can be recorded as follows:

Account Name                   Dr ($)              Cr ($)            

Treasury stock (w.1)          3,600

Cash                                                         3,600

(To record 100 shares repurchase at $36 per share.)  

Working

w.1: Treasury stock = Number of shares repurchase * Cost per share = 100 * $36 = $3,600

Justin invests $10,000 per month for five years at 6.00% annual effective with the first payment made immediately. He used the accumulated value of the investment to purchase a house. If inflation is 3% per year, what is the current value of the house he would purchase assuming houses appreciate at the inflation rate?

Answers

Answer:

Justin

Present value of $714,677.31 at 3% per year for 5 years:

Discount factor of 3% for 5 years (discount factor table) = 0.863

Present value = $714,677.31 x 0.863

= $616,766.52

The house has a current value of $616,766.52.

Explanation:

a) Data and Calculations:

Investment = $10,000 per month

Period = 5 years or 60 months

Annual effective interest = 6% or 0.5% monthly

b) Future value of investment, using an online financial calculator:

FV (Future Value) $714,677.31

PV (Present Value) $529,841.89

N (Number of Periods) 60.000

I/Y (Interest Rate) 0.500%

PMT (Periodic Payment) $10,000.00

Starting Investment $10,000.00

Total Principal $610,000.00

Total Interest $104,677.31

c) First, we work out the future value of Justin's investment of $10,000 per month for five years at 6% annual effective.  This gives us a future value of $714,677.31.  Then, we can discount this future value to its present value with a discount factor of 0.863 if the inflation rate is 3% becauses houses appreciate at the inflation rate.  Multiplying this future value by the discount factor gives the present value of the house as $616,766.52.  This means that the house had appreciated in value by $97,910.79 at the inflation rate of 3% per year after five years.

What is task performance leader ship?

Answers

The task-relationship model is defined by Forsyth as "a descriptive model of leadership which maintains that most leadership behaviors can be classified as performance maintenance or relationship maintenances." Task-oriented (or task-focused) leadership is a behavioral approach in which the leader focuses

The task-relationship model is defined by Forsyth as "a descriptive model of leadership which maintains that most leadership behaviors can be classified as performance maintenance or relationship maintenances." Task-oriented (or task-focused) leadership is a behavioral approach in which the leader focuses on the tasks ...

Which of the following is not an example of "fair use?
O teaching

O scholarship

O borrowing someone's illustrations for your children's book

O research

Answers

Answer:

C - borrowing someone's illustrations for your children's book

Explanation:

This is because you do not have permission to use the illustrations, and you are claiming the illustrations as your own when you put it in your book.

Plaese give brainliest or at least a thanks!

Answer:

C

Explanation:

O borrowing someone's illustrations for your children's book

Consider a risky portfolio, A, with an expected rate of return of 0.15 and a standard deviation of 0.15, that lies on a given indifference curve. Which one of the following portfolios might lie on the same indifference curve?
A. E(r) = 0.15; Standard deviation = 0.20.
B. E(r) = 0.15; Standard deviation = 0.10.
C. E(r) = 0.10; Standard deviation = 0.10.
D. E(r) = 0.20; Standard deviation = 0.15.
E. E(r) = 0.10; Standard deviation = 0.20.

Answers

Answer: C. E(r) = 0.10; Standard deviation = 0.10.

Explanation:

An indifference curve is plotted by graphing the various combinations of portfolios such that the customer in question is indifferent between them as they regard the combinations as giving them equal utility.  

For portfolios to be on the same indifference curve they would have to provide the same reward - risk ratio. The reward to risk ratio of the portfolio in question is;

=Expected return/standard deviation'

= 0.15/0.15

= 1.0

Any portfolio with this same reward - risk ratio will be on the same curve.

The Portfolio in Option C has the same reward - risk ratio (0.1 - 0.1) and so will lie on the same indifference curve.

Assume that the US produces mangoes in California and also imports them from India. India produces mangoes at a lower cost. A tariff imposed by the US government on mangoes from India will:

Answers

Answer:

Increase the price of mangoes in the US, and lower the quantity of mangoes sold in the US

Explanation:

Tarrifs are amounts that are levied on import of a product aimed at discouraging use of foreign goods and encourage purchase of locally produced goods.

Tariffs will force importers to offer the foreign product at higher price.

In this scenario when Indian mangoes are subjected to tarrif the prices will be high.

Consumers will patronise less of Indian mangoes and instead by more locally produced mangoes.

This will cause price of mango to rise because of relative scarcity of mangoes. It will cause reduction in the amount of mangoes in the United States because the will be a reduction of imported mangoes.

If we are replacing an old vehicle with a newer model, the cost of the old vehicle is:_______.
a. relevant to the decision
b. material to the decision
c. a sunk cost
d. an opportunity cost

Answers

Answer:

Option C

It is a sunk cost

Explanation:

The relevant cost of a decision is that that would future cash cash flow that arises as a direct consequence of a taking a decision.

In other words, before a sum is considered relevant to a decision , it must satisfy the following condition:

Future cost : a cots would only be incurred in the future if the decision is takenIt is must involve cashIt must arise as direct consequence of taking the decision

The cost of the old machine is a past or sunk cost. It does not satisfy the three conditions listed above. Hence, it is no relevant because it is a sunk or past cost

Jackson Company produces plastic that is used for injection-molding applications such as gears for small motors. In 2019, the first year of operations, Jackson produced 4,600 tons of plastic and sold 3,680 tons. In 2020, the production and sales results were exactly reversed. In each year, the selling price per ton was $2,400, variable manufacturing costs were 16% of the sales price of units produced, variable selling expenses were 8% of the selling price of units sold, fixed manufacturing costs were $3,312,000, and fixed administrative expenses were $470,000. (a) Prepare income statements for each year using variable costing.

Answers

Answer:

income statements for each year using variable costing

                                                                      2019                     2020

Sales                                                         $8,832,000        $11,040,000

Less Cost of Sales :

Opening Stock                                                $0                    $353,280

Add Manufacturing Cost                         $1,766,400             $1,413,120

Less Closing Stock                                  ($353,280)                  $0

Cost of Sales                                            ($1,413,120)         ($1,766,400)

Contribution                                              $7,418,880          $9,273,600

Less Expenses

Fixed manufacturing costs                      ($3,312,000)      ($3,312,000)

Selling Expenses :

Variable                                                     ($706,560)         ($883,200)

Fixed  Administrative Expenses              ($470,000)         ($470,000)

Net Income / (Loss)                                  $2,921,120          $4,608,400            

Explanation:

Reconciliation of Units

                                         2019                     2020

Opening Stock                     0                         920

Add Production               4,600                   3,680

Available for Sale            4,600                  4,600

Less Sales                      (3,680)                 (4,600)

Closing Stock                     920                       0

Product Cost

Consider only variable manufacturing costs

Product Cost = $2,400 × 16%

                      = $384

The Day Company and the Knight Company are identical in every respect except that Day is not levered. Financial information for the two firms appears in the following table. All earnings streams are perpetuities, and neither firm pays taxes. Both firms distribute all earnings available to common stockholders immediately. Day Knight Projected operating $750,000 $ 750,000 income Year-end interest on debt $ 77,500 Market value of stock $3,600,000 $2,300,000 Market value of debt - $1,550,000
a-1. What will the annual cash flow be to an investor who purchases 10 percent of Knight's equity? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
a-2. What is the annual net cash flow to the investor if 10 percent of Day's equity is purchased instead? Assume that borrowing occurs so that the net initial investment in each company is equal. The interest rate on debt is 5 percent per year. (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
X Answer is not complete.
a-1. Cash flow $ 67,250
a-2. Cash flow
b. Given the two investment strategies in (a), which will investors choose?

Answers

Answer:

a) $67,250

b) $68,500

c) Investment in Day Company results in a higher return, so I guess investors would probably go for it.

Explanation:

Knight Company's net income = $750,000 - $77,500 = $672,500

total investment in Knight Company = $2,300,000 / 10% = $230,000

earnings per 1$ invested = $672,500 / $2,300,000 = $0.292391

total cash flow = $230,000 x $0.292391304 = $67,250

Day Company's net income = $750,000

earnings per 1$ invested = $750,000 / $3,600,000 = $0.208333333

total investment in Day Company = $360,000, but I borrowed $130,000 to make this investment. The $130,000 will result in $6,500 annual interest payments

total cash flow = ($360,000 x $0.208333333) - $6,500 = $75,000 - $6,500 = $68,500

What is the future value of $500 in 17 years assuming an interest rate of 7 percent compounded semiannually

Answers

Answer:

The future value is $1,610.430167

Explanation:

The computation of the future value is shown below:

As we know that

Future value = Present value ×(1 + interest rate)^number of years

= $500 × (1 + 0.07 ÷ 2)^17× 2

= $500 × (1.035)^34

= $1,610.430167

Hence, the future value is 1610.430167

By applying the above formula we simply determined the future value

George, a wealthy investor, is uncertain whether he should invest in taxable or tax-exempt bonds. What tax and nontax factors should be considered?

George needs assistance understanding the different application of prepaid income under tax law and financial accounting

Answers

Answer:

The classification including its subject in question is outlined in the section given elsewhere here.

Explanation:

1...

Tax

Tax-Exempt Bonds: Municipal bonds gain financially by being able to benefit from income and sales taxes. This will give the company the added value with just paying taxes whenever the moment arises.Taxable Bonds: Nonetheless, taxable bonds allow the borrower to pay county and national taxation, and therefore are usually sold to ventures that do not help the common person.

Rate of Return

Tax-Exempt Bonds: Municipal bonds, and perhaps tax-exempt treasuries, bring a lower cost of capital than that of the subject to tax paid great also because the investment company was also tax-exempt. Taxable Bonds: Taxable investors consider a rate of profitability for the market. Because this yield is greater than those of mutual funds, measurements of yields are necessary on a constant schedule.

Net Taxable Income

Tax-Exempt Bonds: Throughout comparative analysis with either a municipal bond, developers could receive less profit with a taxable contract however if designers earn a lower profit margin. Taxable Bonds: In comparison to something like a municipal bond, we might also receive less money with such a subject to tax contract even however we are accruing a higher rate of return.

Yield Comparison

Tax-Exempt Bonds: The proportion of tax deductible-equivalent production will always be lower than that of the subject to tax production. Taxable Bonds: The portion of taxable-equivalent production would always be significantly greater than that of the exempt yield. It's indeed attributable to the deduction of residential mortgage taxes.

2...

The description prepaid benefit applies to any payment received in conjunction with and therefore is specifically due to, a debt that lasts past every end of the following term in which that payment is obtained. We implement the accounting method of the accounts under managerial statements.Incorporation throughout Gross Income gets to decide underneath the accrual ability to earn instead of just receiving the products. Payment method income taxpayers cause prosecutorial misunderstanding over all the natural environment of revenue recognition. The simplification of most courts assumes that revenue may accrue before or on before receipt but have never during the. Extra cash collected to proceed with productivity is therefore taxable instead of receiving.

The Cutting Department has units in process at the end of that are​ 100% complete for direct materials and ​% complete for conversion costs. Calculate the equivalent units of production for direct materials and conversion costs.

Answers

Answer:

this question is incomplete, so I looked for another question that can be used as an example:

"The Cutting Department has 8,000 units in process at the end of September that are 100% complete for direct materials. The units are 70% complete for direct labor and manufacturing overhead, which is added uniformly. "

the equivalent units of production for direct materials  = 8,000 units x 100% = 8,000 equivalent units

the equivalent units of production for conversion costs (direct labor and manufacturing overhead)  = 8,000 units x 70% = 5,600 equivalent units

Suppose a U.S. Treasury bond will pay $2,500 five years from now. If the prevailing interest rate on 5-year Treasury bonds is 4.25%, compounded semiannually, the value of the bond today is closest to:

Answers

Answer:

The value of the bond today is closest to $1648.85

Explanation:

The value of the bond today is closest to:

Present Value = FV / (1+i)^n *m

FV= 2500

I = 4.25 = 0.0425

N= 5

M= 2

The value of the bond today = 2500 / (1+0.0425) ^5*2

The value of the bond today = 2500 / 1.516214468

The value of the bond today = 1648.853256

The value of the bond today = $1648.85

The following information was taken from the 2017 financial statements of Eiger Corporation, a maker of equipment for mountain and rock climbers:

Net income $ 100,000
Depreciation 30,000
Increase (decrease) in
Accounts receivable 110,000
Inventories (50,000 )
Prepaid expenses 15,000
Accounts payable (150,000 )
Salaries payable 15,000
Other current liabilities (70,000 )
Calculate Eiger’s cash flow from operating activities for 2017. (If the cash flow amount is negative, enter your answer with a minus sign.)

Answers

Answer:

Eiger’s cash flow from operating activities for 2017 is - $150,000.

Explanation:

Cash flow from Operating Activities

                                                                                     $

Net income                                                             100,000

Adjustments for non-cash items

Depreciation                                                            30,000

Adjustment fro changes in working capital

Increase in Accounts receivable                         - 110,000

Decrease in Inventories                                         50,000

Increase in Prepaid expenses                              - 15,000

Decrease in Accounts payable                          - 150,000

Increase in Salaries payable                                   15,000

Decrease in Other current liabilities                    - 70,000

Net Cash flow from Operating Activities            -150,000

The analytics layer of the Big Data stack is experiencing what type of development currently?

Answers

Answer:

significant development

Explanation:

the analytics layer of BiG data comprises the different applications, warehouses and pipelines that are applied in solving analytics use cases in organizations. Big data analytics are the various data patterns, information and data stories acquired from Big data through thecimplex process of studying and examining big data.

Big data analytics has seen a lot of development, from complex algorithms that perform deep mining to artificial intelligence. There have been vast improvements to analytics since the days of just hand statistics or excel sheets. Organizations have committed to large investments in data hardware and software such as analytics tools like Hadoop

The Equal Employment Opportunity Act gave the Equal Employment Opportunity Commission the authority to:

Answers

Answer:

issue guidelines for employer conduct in administering equal employment opportunity programs.

Explanation:

This act known as the The Equal Employment Opportunity Act was enacted to check discrimination and unfair treatment against minorities such as African Americans. This act has given the right to sue whenever any form of discrimination based on race, skin color, religious affiliation is found in the work place.

Therefore the correct answer is issue guidelines for employer conduct in administering equal employment opportunity programs.

Savings Mart is a national retail chain. To entice the company to open a mega store in its jurisdiction, the city of Populationville donated a 20-acre tract of land to be used for construction. The land was originally purchased by the city for $250,000 three years ago. The appraisal value at the time of the donation was $300,000. For what amount should Savings Mart record the donated land

Answers

Answer:

$300,000

Explanation:

As per the Internal service revenue (IRS) and Generally accepted accounting principles (GAAP), when the entity who is profit making received any fixed asset as a donation than the same assets should be recorded at the fair value amount

Here the purchase price is $250,000 and the appraisal value i.e. fair value is $300,000

So the amount of donating the land should be recorded at $300,000

"A customer owns 1,000 shares of XYZZ stock, purchased at $40 per share. The stock is now at $45, and the customer has become extremely bearish on the company. The client asks her representative for an "aggressive recommendation." The client should be told to:"

Answers

Answer:

Sell 1,000 shares of XXYZZ and buy 10 XYZZ put contracts

Explanation:

In the stock markets a bullish trend is when the price of the stock increases, while a bearish market is when the stock price decreases.

In this scenario the customer owns 1,000 shares of stock XYZZ stock that have been in a bullish trend rising from $40 to $45.

Usually a bullish trend is followed by a bearish trend.

If the customer is sure there will be a bear on the stock them he should sell or make a put trade.

On sale of the 1,000 shares the customer will make $5 per share, and enter a put option since the market is going bearish.

Refer to Mc-King Chicken. Which of the following would not be an advantage of a franchise?
a. He gains fast and well-controlled distribution.
b. He has more capital available to expand.
c. Outlets are maintained and operated according to a set plan.
d. He has the opportunity to start a business with limited capital.
e. Success will cause another outlet to be opened nearby.

Answers

Answer: e. Success will cause another outlet to be opened nearby.

Explanation:

Another franchise opening does not depend on the success of Mc-King because this would imply that the funds from the successful outlet will be needed to open a new branch.

Franchises are opened with minimal capital from the side of the franchisor so the success of an outlet is not a factor in franchising. Even if he not making enough to start another outlet using his own funds, franchising will enable him to by using the funds of others.

Identify financial statement by type of information) Butler Tech, Inc., is expanding into India. The company must decide where to locate and how to finance the expansion. Identify the financial statement where these decision makers can find the following information about Butler​ Tech, Inc. In some​ cases, more than one statement will report the needed data.

a. Revenue
b. Common stock
c. Current liabilities
d. Long-term debt
e. Dividends
f. Ending cash balance
g. Adjustments to reconcile net income to net cash provided by operations
h. Cash spent to acquire the building
i. Income tax expense
j. Ending balance of retained earnings
k. Selling, general, and administrative expense
l. Total assets
m.Net income
n. Income tax payable

Answers

Answer:

a. Revenue - Income Statement

b. Common Stock - Balance Sheet

c. Current liabilities - Balance Sheet

d. Long-term Debt - Balance Sheet

e. Dividends - Statement of Shareholder Equity / Statement of Retained Earnings

f. Ending Cash Balance - Balance Sheet

g. Adjustment to reconcile net income to net cash provided by operations -Statement of Cash Flows

h. Cash spent to acquire the Buildings - Statement of Cash Flows

i. Income tax expense - Income Statement

j. Ending Balance of retained earnings - Statement of Shareholder Equity / Statement of Retained Earnings / Balance Sheet

k. Selling general and administrative expenses - Income Statement

l. Total Assets - Balance Sheet

m. Net Income - Income Statement / Statement of Shareholder Equity / Statement of Retained Earnings

n. Income tax payable - Balance Sheet

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