A company has 6,000,000 shares outstanding, traded most recently at $20/share. It issues 400,000 new shares, and the price drops to $18.75/share. What is the result?
a) Its book value has increased
b) Its book value has decreased
c) Its market value has increased
d) Its market value has decreased
Answer: a) Its book value has increased
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The following information is available for the LBB Company for the year 2015:
Required (1) What are total manufacturing costs charged to work in process? (2) What are costs of finished goods manufactured? (3) What is the cost of goods sold? (4) What is gross profit? (5) What is operating income? What will be an ideal response?
In CASE 23.1 Tufankujian v. Rockland Trust Co (2003) Tufankujian signed a contract to acquire a Toyota dealership for $1.4 million. Rockland agreed to lend Tufankujian $700,000 at 7.5% interest, with the remaining $700,000 to come from the SBA at a separate interest rate which was quoted by Rockland at 6.5% (but with no written guaranty). Ultimately, the loan was not consummated and Tufankujian
sued. How did the court rule? a. The court dismissed Tufankujian's claims. b. The court held Tufankujian breached his duty of good faith and fair dealing and awarded damages to Rockland. c. The court held Rockland had committed fraud but only awarded Tufankujian nominal damages of $1. d. The court held Rockland breached its duty of good faith and fair dealing and awarded damages to Tufankujian.