Inversely, when a share repurchase is seen as treasury stock, the cost of the treasury stock is naturally disclosed as a decrease in total shareholders’ equity. Alcoa would report the purchase of the treasury stock by debiting treasury stock and crediting cash for the charge of the purchase. The treasury stock ought to be disclosed independently in the shareholders' equity area of Alcoa’s balance sheet as an unallocated cut of shareholders' equity. These shares are treated as issued although not part of common stock outstanding. If subsequently resold for a sum larger than the cost, Alcoa should report for the sale of the treasury stock by debiting cash for the sale cost, crediting treasury stock for cost, and crediting additional paid-in capital from repurchased stock for the excess of the selling price over the cost.
D. paid-in capital. 43) Stock dividends distributable should be classified on the A. balance sheet as an asset. B. balance sheet as a liability. C. income statement as an expense. D. balance sheet as an item of stockholders’ equity.
Jones should use Johnson's stock to acquire Smithon. This would be a stock for stock transaction. In the context of mergers and acquisitions, the exchange of an acquiring company's stock for the stock of the acquired company at a predetermined rate. Here, in this acquisition Shareholder's of corporation give up their stock solely in exchange for the voting stock acquiring corporation or its parent. The acquiring company's basis in the stock of the acquired company is equal to the basis that the shareholder's had in their stock.
In 2004, Verizon Communications Inc. (VZ) was added to the Dow Jones Industrial Average, which was an extremely powerful move for Verizon, and for the telecommunications industry (“Marketwatch,” 2012). The company name, “Verizon”, was a combination of the Latin word “veritas”, meaning certainty, and “horizon”, always looking forward toward progress. With this newly merged corporation, Verizon was able to take advantage of the 7.1 million and 72 million potential GTE wireless customers, and 43 million land based Bell Atlantic customers (“Verizon,” 2012). Verizon Communications has several main products and services that are offered to customers, and are more than just a wireless provider. Verizon Wireless is the branch of the company that provides wireless phone and data solutions to consumers.
The Goals are to increase occupancy rates, focus on business travellers and provide at least a 15% after tax return on any proposed investment. Operating profit for the banks must be at least 11% of revenue per year. We need to improve occupancy rates and attract more business travelers to GR Hotels given the funding and profitability constraints. There are 3 alternatives for GR Hotels. First, we can convert GR Hotels to an upscale hotel.
The second component is the cost of sales which includes the costs directly linked to providing the trade. For example this is the cost of buying the products. The formula for cost of sales is opening stock + purchases – closing stock. According to business alpha the cost of sales is 2,647,000. The final component of trading accounts is gross profit; gross profit is the amount of money that is left after the cost of goods sold has been taken away from the stock turnover.
With doing so, Morgan had created the first billion dollar company in the world, in which the company had held a $1.4 Billion capitalization. The U.S. Steel Company’s main goal was to get greater economies of scale, reduce costs of construction, have greater distribution, and expand its products. The company was also used to compete in a global scale with Germany and England, which would allow for more competition for products and goods. Many critics were stating that U.S. Steel was trying to monopolize the market by trying to take control of everything steel from the railroads to common nails used in construction and also tried to take over the building of ships, bridges, and general construction in the cities. When 1901 came around the business of U.S. Steel had dropped and with this Schwab, who was a
Advantages and Disadvantages of Issuing Preferred Stock vs. Bonds Stock is a share of ownership in a company, sold by the company to its investors. “A bond is a form of an interest-bearing note…..requires periodic interest payments with the face amount to be repaid at the maturity date.” Both stock and bonds come in different classes: common and preferred stock, convertible, term, serial, callable and debenture bonds. Preferred stock, as defined by the Financial Accounting textbook, is “one or more classes of stock with various preference rights such as a preference to dividends.” Dividends are “distributions of a corporation’s earnings to stockholders.” These dividend rights are shown as a dollar amount per share or a percentage of par (Warren/Reeve/Duchac, 2012). There are several advantages and disadvantages to issuing preferred stock. A couple of the advantages to preferred stock are fixed rate of dividends and no voting rights.
c. Purchase stocks of Brown Group, Inc. only. Solution: 1. Calculate the Standard Deviation and Covariance of the Vanguard index, California R.E.I.T., & Brown Group, Inc. * Standard Deviation - In finance, standard deviation is applied to the annual rate of return of an investment to measure the investment's volatility. Standard deviation is also known as historical volatility and is used by investors as a gauge for the amount of expected volatility. In short, it measures the risk in each set of stocks.
Equilibrium in the asset market is described by the condition that real money supply equals real money demand because when supply equals demand for money, demand must also equal supply for nonmonetary assets. The aggregation assumption that is needed for this is that we can lump all wealth into two categories: (1) money and (2) nonmonetary assets. 8. In equilibrium, the price level is proportional to the nominal money supply; in particular it equals the nominal money supply divided by real money demand. Similarly, the inflation rate is equal to the growth rate of the nominal money supply minus the growth rate of real money demand.