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dezoksy [38]
2 years ago
8

Firm X has declared a stock dividend that pays one share of stock for every five shares owned. After the stock dividend, earning

s per share will:_________a. Remain the same.b. Decline 20%.c. Decline 5%.d. Not enough information.
Business
1 answer:
attashe74 [19]2 years ago
8 0

Answer:

Option (b) Decline 20%

Explanation:

Data provided in the question:

Firm X has declared a stock dividend that pays one share of stock for every five shares owned

Therefore,

The increase in number of shares

= [ 1 ÷ 5 ] × 100%

= 20%

Thus,

The earnings per share will decrease by the amount of increase in number of shares i.e decrease by 20%

Hence,

Option (b) Decline 20%

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When Home Depot stores entered the Canadian market, there were already stores providing similar services and products. To get pe
nasty-shy [4]

Answer:

When Home Depot stores entered the Canadian market, there were already stores providing similar services and products. It employed Competitive effect To get people to try Home Depot by deliberately selling merchandise below the price that the Canadians did.

Explanation:

The competitive effect is the concept that allows a certain individual or organization to become attractive to customers under a scenario of pre-established markets by reducing its cost or prices making the organization competent in the market by driving the rest of the organizations in the industry compete with their costs or prices.

3 0
2 years ago
Read 2 more answers
Zen Manufacturing Company is considering replacing a four-year-old machine with a new, advanced model. The old machine was purch
dedylja [7]

Answer:

$4,800

Explanation:

The computation of additional annual cash inflow is shown below:-

Saving in Annual Maintenance Cost by new machine = $15,000 - $6,000

= $9,000

Net savings on Maintenance = $9,000 × (1 - 0.4)

= $5,400

Decrease in Depreciation due to purchase of New machinery

= ($60,000 ÷ 10) - ($45,000 - 10)

= $6,000 - $4,500

= $1500  

Tax to be paid due to decrease in Depreciation = Decrease in Depreciation due to purchase of New machinery × Tax rate

= $1,500 × 0.4

= $600

Net Annual cash Inflow due to new machinery =  Net savings on Maintenance - Tax to be paid due to decrease in Depreciation

= $5,400 - $600

= $4,800

So, for computing the additional annual cash inflow we simply applied the above formula.

4 0
2 years ago
The unusual types of ingredients Vosges uses, as described in the video, are part of which elementof the four Ps?
Inga [223]

Answer:

B. product

Explanation: the unusual ingredients are part of the product.

6 0
2 years ago
Crane Sales Company uses the retail inventory method to value its merchandise inventory. The following information is available
wlad13 [49]

Answer:

c) $222,500 $313,500

Explanation:

Calculation for cost-to-retail ratio

COST

Beginning inventory $ 30,000

Add: Purchases $190,000

Add: Freight-in $2,500

Cost=$222,500

RETAIL

Beginning inventory $ 45,000

Add: Purchases $260,000

Add: Net markups $8,500

Retail = $313,500

Therefore the cost-to-retail ratio will be $222,500 $313,500

4 0
2 years ago
One Device makes universal remote controls and expects to sell 500 units in January, 800 in February, 450 in March, 550 in April
Reil [10]

Answer and Explanation:

The preparation of the production budget  and The total required production for the year is as follows

<u>                                                   One Device </u>

<u>                                                   Production budget</u>

<u>                                               For the first four months</u>

<u>Particulars        Jan             Feb             Mar            April              Year</u>

Expected

unit sales          500 units    800 units   450 units  550 units    

Add:

Ending

inventory          160 units     90 units      110 units   120 units

     ($800 × 20%)     ($450 × 20%)    ($550 × 20%)     ($600 × 20%)

Total

required units  660 units    890 units     560 units  670 units

Less:

Beginning

inventory         100 units      160 units     90 units       110 units

       ($500 × 20%)  ($800 × 20%)  ($450 × 20%)    ($550 × 20%)  

Required

production

units                 560 units     730 units     470 units     560 units     2,320 units

7 0
3 years ago
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