If a company issues $5 par value common stock,
a. $5 per share is presented in the common stock account on the balance sheet.
b. the minimum selling price is $5.
c. the shareholders will receive $5 in dividends.
d. liabilities are increased as a result of the transaction.
a
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Baker's Hut is a coffee house based in Atlanta, Georgia. The proprietor of Baker's Hut has set out
a list of objectives for the establishment to achieve. Which of the following qualifies as a measurable objective under the S.M.A.R. T objective framework? A) "Expand the range of our menu offerings by the end of the calendar year." B) "Establish a minimum of four Baker's Hut coffee houses in Atlanta through a franchise model." C) "Become the preeminent coffee house in the city through a robust commitment to quality." D) "Provide training and opportunities for the staff to improve their skills."
Your firm is considering investing in one of two mutually exclusive projects. Project A requires an
initial outlay of $3,500 with expected future cash flows of $2,000 per year for the next three years. Project B requires an initial outlay of $2,500 with expected future cash flows of $1,500 per year for the next two years. The appropriate discount rate for your firm is 12% and it is not subject to capital rationing. Assuming both projects can be replaced with a similar investment at the end of their respective lives, compute the NPV of the two chain cycle for Project A and three chain cycle for Project B. A) $2,865 and $94 B) $3,528 and $136 C) $5,000 and $1,500 D) $2,232 and $85