Issuing new shares of common stock will Select one: a. decrease common stock. b. increase common...
Issuing new shares of common stock will
Select one:
a. decrease common stock.
b. increase common stock.
c. increase retained earnings.
d. decrease retained earnings.
Homework Answers
Answer : b) increase common stock
New issue of the common stock will increase the total common stock with the firm. Net income will increase the retained earnings
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Issuing new shares of common stock will
Select one:
a. decrease common stock.
b. increase common...
Yonkers Inc. is issuing new common shares in a rights offer in order to raise $10...
Yonkers Inc. is issuing new common shares in a rights offer in order to raise $10 million for a new project. The subscription price for each new share is $10. The firm currently has 2 million common shares outstanding, each priced at $25 in the market. What is the price of each right? Select one: a. $1 b. $2 c. $5 d. $10 e. $15
1) The number of shares of stock a corporation sells to investors are a. Authorizes shares...
1) The number of shares of stock a corporation sells to investors are a. Authorizes shares b. Issued shares c. Treasury shares d. Outstanding shares 2) A corporation issued 20 shares of common stock with $1 par value for $5 per share. The amount of cash the company generated By issuing the common stock was a. $5 b. $20 c. $80 d. $100 3) The declaration of a cash dividend a. Increases cash b. Decreases cash c. Increase retained earnings...
The cost of issuing new common stock is calculated the same way as the cost of...
The cost of issuing new common stock is calculated the same way as the cost of raising equity capital from retained earnings. True: The cost of retained earnings and the cost of new common stock are calculated in the same manner, except that the cost of retained earnings is based on the firm's existing common equity, while the cost of new common stock is based on the value of the firm's share price net of its flotation cost. False: Flotation...
Refer to the following information for Tolan Corporation: bullet Common Stock, $1.00 par, 106,000 shares issued,...
Refer to the following information for Tolan Corporation: bullet Common Stock, $1.00 par, 106,000 shares issued, 100,000 shares outstanding bullet Paid-In Capital in Excess of Parlong dashCommon: $2,190,000 bullet Retained Earnings: $920,000 bullet Treasury Stock: 6,000 shares purchased at $21 per share If Tolan resold 2,500 shares of treasury stock for $22.50 per share, which of the following statements would be true? A The Treasury Stock account would decrease by $52,500. B. The Retained Earnings account would increase by $56,250....
20. The sale of common shares should be recorded as a (a) debit to Retained Earnings...
20. The sale of common shares should be recorded as a (a) debit to Retained Earnings and a credit to Cash. (b) debit to Cash and a credit to Retained Earnings. (c) debit to Cash and a credit to Common Shares. (d) debit to Common Shares and a credit to Cash. 21. Dividends in arrears on cumulative preferred shares (a) never have to be paid, even if common dividends are paid. (b) must be paid before common shareholders can receive...
P1 the stock in exchange for the lar On June 30, 2017, Sharper Corporation's common stock...
P1 the stock in exchange for the lar On June 30, 2017, Sharper Corporation's common stock is priced at $62 per share before any stock divi- d splits dend or split, and the stockholders' equity section of its balance sheet appears as follows Common stock-$10 par value, 120,000 shares authorized, 50,000 shares issued and outstanding $ 500,000 200,000 660,000 Paid-in capital in excess of par value, common stock Retained earnings $1,360,000 Total stockholders' equity 1. Assume that the company declares...
1) The number of shares of stock a corporation sells to investors are a) Authorized shares...
1) The number of shares of stock a corporation sells to investors are a) Authorized shares b) Issued shared c) Treasury shares d) Outstanding shares 2) A corporation issued 20 shares of common stock with a $ 1 par value for $5 per share. The amount of cash the company generated by issuing the common stock was a) $5 b) $20 c) $80 d) $100 3) The declaration of a cash dividend A) Increases cash b) Decreases cash c) Increases...
Which one of the following is a source of cash? O increase in common stock O...
Which one of the following is a source of cash? O increase in common stock O decrease in retained earnings increase in accounts receivable O decrease in long-term debt Which one of the following is classified as an investment activity on the statement of cash flows? O purchase of inventory O purchase of equipment O repayment of a long-term debt O sale of common stock
Which one of the following represents the economic effects of issuing a 2-for-1 stock split? No...
Which one of the following represents the economic effects of issuing a 2-for-1 stock split? No effect on par value per share or retained earnings Decrease par value per share, and no effect on retained earnings No effect on par value per share, and decrease retained earnings Increase par value per share and retained earnings Question 19 2 pts If a corporation uses retention of earnings to finance the purchase of property instead of issuing equity securities, then the debt/equity...
Eagle Eye, Inc., a corporation, received an additional investment of $6,000 cash in exchange for shares...
Eagle Eye, Inc., a corporation, received an additional investment of $6,000 cash in exchange for shares of common stock. How does this transaction affect Eagle Eye's accounts? Select one: a. Increase common stock and increase cash by $6,000 each O b. Increase common stock and increase revenue by $6,000 each O C. Increase in stock expense and decrease cash by $6,000 each d. Increase common stock and decrease retained earnings by $6,000 each O Check The liabilities that are due...
The cost of issuing new common stock is calculated the same way as the cost of raising equity capital from retained earnings. True: The cost of retained earnings and the cost of new common stock are calculated in the same manner, except that the cost of retained earnings is based on the firm's existing common equity, while the cost of new common stock is based on the value of the firm's share price net of its flotation cost. False: Flotation...
20. The sale of common shares should be recorded as a (a) debit to Retained Earnings and a credit to Cash. (b) debit to Cash and a credit to Retained Earnings. (c) debit to Cash and a credit to Common Shares. (d) debit to Common Shares and a credit to Cash. 21. Dividends in arrears on cumulative preferred shares (a) never have to be paid, even if common dividends are paid. (b) must be paid before common shareholders can receive...
P1 the stock in exchange for the lar On June 30, 2017, Sharper Corporation's common stock is priced at $62 per share before any stock divi- d splits dend or split, and the stockholders' equity section of its balance sheet appears as follows Common stock-$10 par value, 120,000 shares authorized, 50,000 shares issued and outstanding $ 500,000 200,000 660,000 Paid-in capital in excess of par value, common stock Retained earnings $1,360,000 Total stockholders' equity 1. Assume that the company declares...
Which one of the following is a source of cash? O increase in common stock O decrease in retained earnings increase in accounts receivable O decrease in long-term debt Which one of the following is classified as an investment activity on the statement of cash flows? O purchase of inventory O purchase of equipment O repayment of a long-term debt O sale of common stock
Which one of the following represents the economic effects of issuing a 2-for-1 stock split? No effect on par value per share or retained earnings Decrease par value per share, and no effect on retained earnings No effect on par value per share, and decrease retained earnings Increase par value per share and retained earnings Question 19 2 pts If a corporation uses retention of earnings to finance the purchase of property instead of issuing equity securities, then the debt/equity...
Eagle Eye, Inc., a corporation, received an additional investment of $6,000 cash in exchange for shares of common stock. How does this transaction affect Eagle Eye's accounts? Select one: a. Increase common stock and increase cash by $6,000 each O b. Increase common stock and increase revenue by $6,000 each O C. Increase in stock expense and decrease cash by $6,000 each d. Increase common stock and decrease retained earnings by $6,000 each O Check The liabilities that are due...
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