FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Stock or scrip surpluses are those waged out as extra stock shares of the distributing business or its subordinate firm. Nothing concrete will be achieved

Stock or scrip surpluses are those waged out as extra stock shares of the distributing business or its subordinate firm. Nothing concrete will be achieved if the reserve is divided because if the total amount of shares rises, it will reduce the price of each share, devoid of altering the total value of the shares held. Give an example to explain.


Step by Step Solution

★★★★★

3.51 Rating (144 Votes )

There are 3 Steps involved in it

Step: 1

Stock split is a corporate strategy to divide each share of the company into a particular number of ... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Economics

Managerial Economics

Authors: Mark Hirschey

12th edition

9780324584844, 324588860, 324584849, 978-0324588866

More Books

Students also viewed these Economics questions

Question

★★★★★
Give an example to show that, despite that they have the same dimension, the row space and column space of a matrix need not be equal. Are they ever equal?

Answered: 1 week ago

Question

★★★★★
Give an example to show that skeletal muscles work in antagonistic pairs? Explain.

Answered: 1 week ago

Question

★★★★★
Give an example to illustrate each of the following: (a) constant opportunity costs and (b) increasing opportunity costs.

Answered: 1 week ago

Question

★★★★★
Jontil Co. began the current period with a $14,000 balance in the Peter Jontil, Capital account. At the end of the period, the company's adjusted account balances include the following temporary...

Answered: 1 week ago

Question

★★★★★
What are DRPs, and how do they fit into a stock investment program?

Answered: 1 week ago

Question

★★★★★
For the Cobb-Douglas production function in Problem 6.7, it can be shown (using calculus) that MPK = aKa-1 Lb MPL = bKa Lb-1 If the Cobb-Douglas exhibits constant returns to scale (a b 1), show...

Answered: 1 week ago

Question

★★★★★
93. Consider a sequence of independent trials, each of which is equally likely to result in any of the outcomes 0, 1,..., m. Say that a round begins with the first trial, and that a new round begins...

Answered: 1 week ago

Question

★★★★★
Luster Company has current assets of $130,000 and current liabilities of $80,000, of which accounts payable are $70,000. Lusters cost of goods sold is $460,000, its merchandise inventory increased by...

Answered: 1 week ago

Question

★★★★★
On January 1, 2021, Wild Rapids Water Park issues $39.6 million of 7% bonds to finance expansion. The bonds are due in 10 years, with interest payable semiannually on June 30 and December 31 each...

Answered: 1 week ago

Question

★★★★★
Univex is a calendar year, accrual basis retail business. Its financial statements provide the following information for the year: Revenues from sales of goods $ 783,200 Cost of goods sold (FIFO) ...

Answered: 1 week ago

Question

★★★★★
On January 1st 2020, the Watkins Company issued (sold) 100 $1000, 8% bonds for a 1150. Each of the bonds contained a detachable warrant that can be used to purchase a share of Watkins stock for $50....

Answered: 1 week ago

Question

★★★★★
Burdeno Appliances has two divisions, Sales and Financing. Sales is responsible for selling Burdenos inventory and maintaining inventory for future sale. Financing Division takes loan applications,...

Answered: 1 week ago

Question

★★★★★
Jason went to the post office and bought both 41-cent stamps and 26-cent postcards and spent $10.28. The number of stamps was 4 more than twice the number of postcards. How many of each did he buy?

Answered: 1 week ago

Question

★★★★★
Albany Division is considering the acquisition of a new asset that will cost $540,000 and have a cash flow of $184,000 per year for each of the four years of its life. Depreciation is computed on a...

Answered: 1 week ago

Question

★★★★★
On January 1, 2020, Abbey acquires 90 percent of Benjamin's outstanding shares. Financial information for these two companies for the years 2020 and 2021 follows (credit balances indicated by...

Answered: 1 week ago

Question

★★★★★
(Common-size analysis and differences in profitability and leverage) Comparative financial statement data for Cool Brewery Ltd. and Northern Beer Ltd., two competitors, follow (amounts in thousands):...

Answered: 1 week ago

Question

★★★★★
Data: R Z =14.5% ; r f =2% ; and Z =4% 1. What is the correlation between Z and F?

Answered: 1 week ago

Question

★★★★★
a. Why does the Wi-Fi Alliance release compatibility testing profiles in waves instead of combining the entire standards features initially? 27a1.) An 802.11ac Wi-Fi compatibility testing profile...

Answered: 1 week ago

Question

★★★★★
Identify each of the following as being consistent with risk-averse, risk-neutral, or risk-seeking behavior in investment project selection. Explain your answers. A. Larger risk premiums for riskier...

Answered: 1 week ago

Question

★★★★★
Does the fact that public decisions are sometimes made by self-interested politicians and bureaucrats undermine the efficiency of public-sector decision making?

Answered: 1 week ago

Question

★★★★★
A review of industry wide data for the jelly and jam manufacturing industry suggests the following industry supply function: Q = -59,000,000 + 500,000P - 125,000P L - 500,000P K + 2,000,000W, Where Q...

Answered: 1 week ago

Question

★★★★★
8.2 Evaluate the different aspects of job interviews

Answered: 1 week ago

Question

★★★★★
3. How do you dress when you go to the ballet or theater?

Answered: 1 week ago

Question

★★★★★
Why do you want this job?

Answered: 1 week ago

Previous Question Next Question