What effect does the issuance of a 2-for-1 stock split have on shares issued and retained earnings?

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Answer 1

The issuance of a 2-for-1 stock split on shares issued and the retained earnings, the share price will be halved.

Thus, a stock split always  increases the number of outstanding shares and proportionately it  lowers the price of the shares ,  In this issuance the  market capitalization of the company remains unchanged.

A stock split is a good decision taken by a company's board of directors to increase the number of shares outstanding by issuing more shares to current shareholders.

Stock splits can improve the  trading liquidity and the stocks are seemed to be more affordable.

The most common split ratios are 2-for-1 and 3-for-1, it means that a stockholder will have two or three shares, respectively, for each share held before the split of stocks.

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Related Questions

Real estate sales contracts must be valid, express, bilateral, ______, and executed or executory.

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The real estate sales contract must be enforceable.

A real estate sales contract is the most significant agreement used in the sale of a real estate product, such as a house or land. It specifies the terms and conditions of a real estate transaction and may only be used for completed property.

The most typical sort of real estate deal is a purchase agreement. This contract describes the terms of the property transaction.

Sale conditions, contracts The terms under which an auctioneer sells property; the instrument holding these terms, when reduced to writing or printing, is also known as the conditions of sale.

Therefore, the blank is to be filled by the word  enforceable.

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Which characteristic of an effective accounting information system refers to providing information to improve decision making and reduces uncertainty?

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Relevance characteristic of an effective accounting information system refers to providing information to improve decision making and reduces uncertainty.

The relevance of accounting depends on what the accountant use it for. Cost projections for opening a new store are relevant if business is growing and expanding.

If sales have been sluggish and the best we can do is sit tight without expansion, the projections are no longer relevant. If you decide you need to run more leaner, although, information about the cost of goods sold might be relevant.

The relevance of accounting is not just about what you need to know. It is  also applied to other stakeholders.

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In the open-economy macroeconomic model, the source of the supply of loanable funds is:_______

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In the open-economy macroeconomic model, the source of the supply of loanable funds is national savings.

The demand for loanable funds comes from domestic investment (I) and net capital outflows (NCO). The delivery and demand for a loanable budget depend on the actual interest price. A higher real interest rate encourages people to store, i.e. growth the supply of loanable funds.

The delivery of loanable funds comes from people and groups, together with government and businesses, that have determined not to spend some of their cash, however as a substitute, store it for funding functions. One way to make an investment is to lend money to debtors at a rate of interest.

The deliver of loanable price range represents the behavior of all the savers in an economy. The better interest price that a saver can earn, the much more likely they're to store cash. As such, the supply of loanable finances suggests that the quantity of savings to be had will increase as the interest charge will increase.

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__________________________ address the problem of economic growth by continually striving for a more educated workforce that can create, invest in and apply new technologies

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Technological leaders address the problem of economic growth by continually striving for a more educated workforce that can create, invest in and apply new technologies.

Technology is the result of accumulated knowledge and the application of skills, methods and processes used in industrial production and scientific research.

Technology is the way scientific knowledge is applied to practical purposes. It includes not only machines (such as computers), but also technologies and processes (such as how computer chips are made).

Technology is changing the world with the introduction of tools such as the Internet and e-mail for communication, word processing, spreadsheets and presentations for office productivity, electronic databases for record keeping, robots and artificial intelligence. It has evolved and shaped our workplace. automation.

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A person who consumes a good without paying for it is known as a(n) __________. rival utility maximizer producer free ride.

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A person who consumes a good without paying for it is known as a free rider.
The free-rider problem is a type of market failure which occurs when those who benefit from resources, public goods such as public roads or hospitals, or services of a communal nature do not pay for them or pay less.

Free riders are a problem because while not paying for the good either directly through fees or different tolls or indirectly through taxes, they may continue to access or consume it.

Thus, the goods may be under-produced, overused or degraded. Additionally, it has been shown that despite the  evidence of  that people tend to be more cooperative by nature, the presence of free-riders cause this prosocial behaviour to deteriorate.

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Grouping jobs into manageable units according to some reasonable scheme is known as:________

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The procedure of dividing tasks into manageable components. departmentalization.

What is Departmentalization?

Departmentalization is an organizational system in which employees are divided into groups or departments according to a specific set of standards. These divisions are led independently and collaborate to carry out responsibilities. Multiple departments may collaborate on large or complex projects.

What Benefits Do Departmentalization's Offer?Specialization.expansion and growth.Correcting accountability.superior client support.evaluation of performance.management training.resource use at its highest potential.improved control is made possible.

Why are departments necessary?

Making each departmental unit manageable and securing the benefits of specialization are the fundamental requirements for departmentation. It is feasible to extend an enterprise to any degree by organizing operations and, consequently, workers into departments.

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A company produces two products. Product A sells for $25, has variable costs of $15, and requires 2 machine hours to produce. Product B sells for $35, has variable costs of $20, and requires 5 machine hours to produce. 40,000 machine hours are available. The company can sell all it can make of either product. Which statement is true?

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The true statement is A. The company should produce 8,000 units of Product A and 4,800 units of Products.

How is the product mix determined?

To determine the quantity of each product to produce, the company should first determine the contribution margin per unit.

Then, it should calculate the contribution margin per available or scare resource.

The product that yields the highest contribution margin of scarce resource should be produced first.  The resource left after this can be allocated to the next product with the higher contribution margin per scare resource, unless there are other constraints.

Data and Calculations:

                                             Product A       Product B

Selling price per unit                $25                 $35

Variable costs per unit                15                   20

Contribution margin per unit    $10                 $15

Machine hours required               2                    5

Contribution per machine hour $5                  $3

Available machine hours = 40,000

Production mix                      8,000             4,800 units

Hours required for mix       16,000            24,000 (4,800 x 5 hours)

Thus, the true statement is Option A.

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Question Completion with Answer Options:

A. The company should produce 8,000 units of Product A and 4,800 units of Products

B. The company should produce 6,000 units of Product B and 5.000 units of Product A

C. The best sales mix cannot be determined from the information given.

D. The company should produce 4,000 units of Product A and 3,000 units of Product B.

In terms of design principles of an advertisement, to what does balance refer? a. the controlling of the advertisement’s color scheme b. the brightness of the advertisement c. a proper sequence of the advertisement’s content d. the control of size, tone, weight, and position of the elements used in the advertisement e. to ensure that all elements of the advertisement blend with each other and are compatible

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In terms of design principles of an advertisement, balance refer to the brightness of the advertisement.

What is an Advertising?Advertising is a type of marketing communication that uses an overtly commercial, impersonal message to sell or promote a good, service, or concept. Businesses who want to advertise their goods or services are often the sponsors of advertising. Public relations and advertising are distinct from one another because, in advertising, the message is funded and controlled by the advertiser. The message is non-personal, i.e., not directed at a specific person, which distinguishes it from personal selling.What is the balance?The balance is the sum owing on an account in banking and accounting. The term "balance" in bookkeeping refers to the difference between the total of debit entries and the total of credit entries made into an account over the course of a certain financial period.The account shows a debit balance when total debits exceed total credits.

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what roles do entrepreneurs play in the economy?
a. make routine pricing decisions
b. innovate
c. purchase capital
d. create market demand e. take risks
f. make decisions

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B) Innovate E) Take risks F) Make decisions.

Entrepreneurs decide how to combine factors of production to create new goods and services.

What functions do entrepreneurs play in an economy?

The business leader who is an entrepreneur seeks out ideas and implements them to promote economic development. One of the most crucial factors in a nation's economic progress is entrepreneurship. By making business decisions, the entrepreneur serves as the head of the trigger that ignites economic activity.

He is essential to the growth of a nation's agricultural and service sectors in addition to its industrial sector. The following is a methodical and orderly discussion of the key functions that entrepreneurs play in the growth of an economy.

Encourages the formation of capitalLarge-Scale Employment PossibilitiesEncourages balanced regional growthReduces Economic Power ConcentrationCreation and Distribution of WealthRising GNP and per capita incomeRaising the Living StandardsEncourages the country's export tradeCreates backward and forward linkagesPromotes overall development

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The aim of ________ is to make ads and brand content so engaging or useful that people want to watch them. social advertising subliminal advertising branded entertainment advertainment infotainment advertising

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The aim of Advertainment is to make ads and brand content so engaging or useful that people want to watch them. Option D

What is advertainment?

Advertainment is an advertisement methods that uses different forms of entertainment to advertise,

It include the use of television, movies, songs, etc. in way to connect advertising and entertainment. This is done to promote with elements to promote particular products or brands.

It helps to attract and retain customers with the use of the content.

Therefore, The aim of Advertainment is to make ads and brand content so engaging or useful that people want to watch them

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Investor perception on the risk of bonds will raise their desired return.

a. true
b. false

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The statement, investor perception on the risk of bonds will raise their desired return is true.

The higher an investment's risk, the greater its potential returns should be. By contrast, a very safe and low-risk investment should generally offer low returns. So, this investor perception will raise the desired return of the risk of bonds.

Generally, the higher the potential return of an investment, the higher the risk. Thus, there is no guarantee that you will actually get a higher return by accepting more risk. In this matter diversification is useful.

Hence, you can minimize the risk by making sure the company's bond you own is not a high risk company with a high probability of paying back.

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When appraising a 2-4 unit residential property, an appraiser would measure and use _______________ area.

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When appraising a 2-4 unit residential property, an appraiser would measure and use gross building area.

The whole enclosed area of a floor or building, measured to a fixed surface or plane, or, in the case of overhangs and projects to the exterior surface of the building, to the outside surface of the building or structure's permanent exterior walls.

Gross construction areas can be found above, inside, or outside the building's boundaries. The core plant for the building, parking structures, and other buildings that are separate from the main building but are used by the main building may be situated in this area.

Among other features, this area might have mechanical rooms in the penthouses, subterranean facilities, open passages, tunnels, balconies, and overhangs. Unless a tenant is renting out the entire building.

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At a price of $4. 95, a pulp fiction novel is expected to sell 9,000 copies. if the novel is offered for sale at a price of $3. 95, then the publisher can expect to sell:_____

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Pulp fiction is a term used to describe a type of racy, action-oriented story that was mostly published in the United States from roughly 1900 through the 1950s in inexpensively printed magazines.

The paper that pulp fiction was printed on gave the genre its name. More than 9,000 copies.

Why is a narrative considered pulp fiction?

In order to publish magazines more swiftly, the stories themselves have to be written quickly. This, of course, also meant that the stories had simple storylines, no characterization, and, for the main pulp heroes, little to no character development throughout the course of the series of stories.

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When using the indirect method to complete the cash flows from operating activities section of the statement of cash flows, what is the proper disposition of a loss on disposal of equipment?.

Answers

The correct option is D.

Subtract the loss from net income.

What is Cash Flow?

The volume of money a business brings in and expends is known as cash flow. Revenues from sales are used by businesses to pay expenses.

In accounting, the initial net cash flow that is recorded during all firm operational operations is calculated using the indirect technique of estimating or computing cash flow.Under the indirect technique of completing the cash flow from operating activities, any initial net income or net loss is recorded at the beginning.The initial level of net income includes all non-cash expenditures and expenses such as amortization and depreciation of tangible personal property and equipment.The cash flow of operating activities is now calculated by deducting any profits or losses from the sale of long-term assets from net income.

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I understand that the question you are looking for is:

When using the indirect method to complete the cash flows from operating activities section of the statement of cash flows, what is the proper disposition of a loss on disposal of equipment? Multiple Choice

A. Add the loss to net income.

B. Disregard the loss because it relates to a financing activity.

C. Disregard the loss because it relates to an investing activity.

D. Subtract the loss from net income.

What type of marketing relies on buzz, word-of-mouth, and lifestyle messages at times when consumers are relaxing and enjoying hobbies and events?

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Alternative Marketing is the type of marketing which relies on buzz, word-of-mouth, and lifestyle messages at times when consumers are relaxing and enjoying hobbies and events.

Alternative marketing refers to finding and creating programs which are smart and imaginative. Alternative marketing strategies are low cost ways to target specific neighborhoods, ethnic communities, age groups, or low literacy families.

Buzz marketing is also known as word-of-mouth marketing which has been growing in popularity. This method stresses consumers spreading information. Such as words from family, friends, and co-workers have more credibility than the words the company or spokesperson says.

Hence, alternative marketing is the use of buzz, word-of-mouth, and lifestyle messages at times when consumers are relaxing and enjoying.

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Failure of leaders to recognize, attend to, and honor diversity can hinder innovation because?

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Failure of leaders to recognize, attend to, and honor diversity can hinder innovation because Employees are less likely to openly share ideas.

We found that the vast majority of businesses fall short of realizing their full potential for innovation after surveying 1,800 men and women in white-collar jobs at companies with 50 or more people and speaking with dozens of Fortune 500 executives, team leaders, and employees.

Either CEOs lack the ability to recognize the value in ideas from people who think differently than they do, or they fail to foster the kind of culture that would allow for the development of concepts capable of capturing the markets with the greatest growth rates.

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What liabilities does the business have after all transactions have been recorded?

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The business have  current liabilities and non current liabilities after all transactions have been recorded. Current liabilities include the balance of the wages, interest and dividend payable. However non current liabilities include long term debts.

A liability is an obligation between one party and another which has not been yet completed or paid for.

A financial liability is also an obligation but it  is better defined by  the previous business transactions, events, sales, exchange of assets or services, or anything that would provide economic benefit at a later date.

Liabilities are considered as  short term or long term. They are also known as current or non-current depending on the context. They can include a future service owed to others which includes short or long term borrowing from banks, individuals or other entities .  Most companies will have these two line items on their balance sheet, as they are part of ongoing current and long-term.

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Although licensing is a method of beginning international business, many firms view it as a limitation rather than an opportunity because?

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International licensing is a foreign market entry mode which presents many disadvantages and reasons why companies do not use it as opportunity but sees it as a limitation because there is:

Lower level of income  in this mode than in other entry modes.

Risk of having the reputation and trademark ruined by an incompetent partner

Loss of control of the licensee manufacture and marketing operations and practices which leads to the loss of quality.

The foreign partner can become a competitor also by selling its products in places where the parental company has a presence.

International licensing is a business arrangement in which one company gives another company a permission to manufacture its product for a specified payment.

Licensing is  also defined as the granting of permission by the licenser to the licensee in order to use intellectual property rights, such as patents, trademarks, brand names, or technology etc.

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Suppose alyssa is currently using combination d, producing one boat per day. Her opportunity cost of producing a second boat per day is?

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Suppose Alyssa is currently using combination D, producing one boat per day. Her opportunity cost of producing a second boat per day is three balls per day.

The possibility fee is time spent studying and that money to spend on some thing else. A farmer chooses to plant wheat; the possibility cost is planting a extraordinary crop, or an change use of the resources. A commuter takes the educate to paintings in preference to driving.

Now, suppose Alyssa is currently using combination C, producing two boats per day. Her opportunity cost of producing a third boat per day is six balls per day. From the previous analysis, you can determine that as Alyssa increases her production of boats, her opportunity cost of producing one more boat also increases. Because she can now make more boats per hour, Alyssa's opportunity cost of producing balls is more than it was previously .

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Community colleges, sometimes still known as junior colleges, can have two distinct goals. What are these goals?

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The goals are:- transferring students to four-year colleges, and vocational preparation.

Community colleges offer two-year programs that lead to Associate's Degree (AA) or Associate's Degree (AS) degrees. These colleges also have technical and professional programs with close ties to local high schools, community groups, and employers.

The main difference between community college and university is that most community college degrees only take two years, while four-year college degrees take four years.

About 28% of all community colleges offer on-campus housing, but only 1% of community college students live on campus. Her public two-year boarding colleges are spread across most of the United States, but each state has different numbers of dormitories and dormitory capacities.

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_____ are foreign offices, facilities, and manufacturing plants that are 100 percent possessed by the parent company

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Wholly owned affiliates are foreign offices, facilities, and manufacturing plants that are 100 percent possessed by the parent company.

A wholly owned affiliates is a company whose common stock is 100 percent owned by another company. A company can become a wholly owned subsidiary through an acquisition by a parent company.

However, wholly owned subsidiaries allow the parent company to manage, diversify, and possibly reduce its risk. Wholly owned subsidiaries retain legal control over processes, operations, and products.

Hence, having a wholly owned subsidiary may help the parent company in order to maintain operations in diverse geographic areas and markets or separate industries.

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What is the equation for total return as a function of expeted and unexpected returns?

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The equation for total return as a function of expected and unexpected returns is :

Total return = Expected return + Unexpected return

The real rate of return on an investment or a group of assets over time is known as the total return.

Interest, capital gains, dividends, and realized distributions are all included in the total return.

The overall return is shown as a proportion of the initial investment.

The total return is a reliable indicator of an investment's overall success.

The genuine growth of an investment over time is determined by total return. When determining a rise in value, it's critical to consider the big picture instead of just one return metric.

When evaluating a company's historical performance, total return is used. Calculating predicted future returns helps investors make plans for their retirement or other needs and sets fair expectations for their investments.

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A grand strategy that involves expansion of things like sales revenues, market share, or number of employees is known as a ______ strategy.

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A grand strategy that involves expansion of things like sales revenues, market share, or number of employees is known as a growth strategy.

Grand strategies shape the course of a business by focusing on the long-term goals of the business. While running your own business means pondering grand strategies which has to involve everything from product development to liquidation.

A grand strategy involving expansion of things like market share, sales revenues, or number of employees is known as a growth strategy. A growth strategy is an organization's plan to overcome current and future challenges and realize its goals for expansion.

Hence, the growth strategy leads to the growth of an organization.

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Suppose the government introduces a new incentive for individuals to save money for retirement. How would this affect the market for loanable funds and the interest rate?.

Answers

The supply of loanable funds would increase and interest rates would fall.

For instance, they may lower or do away with taxes on savings interest. More people would be motivated to cut back on their present levels of consumption and increase their savings as a result of the enhanced tax benefits associated with saving.

This will result in a rise in the amount of loanable money available (shift to the right.) The interest rate at equilibrium will decrease. People and businesses will have more motivation to borrow as the interest rate declines, pushing up the demand curve and increasing the equilibrium amount of borrowing and lending in the market.

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Everything else held constant, when output is ________ the natural rate level, wages will begin to ________, increasing short.

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Everything else is held constant, when output is below the natural rate level, wages will begin to fall and increase short.

The difference between an economy's actual and prospective output is quantified by the term "output gap" in economics. When an economy is operating at maximum efficiency, or when it is at capacity, potential output refers to the total amount of products and services it can produce.

The productive capacity of the economy is frequently used interchangeably with potential output.

A positive gap develops in a boom when output exceeds its potential level. It is common to refer to the economy in this situation as "overheating," which pushes inflation higher and may force the central bank to "cool" the economy by increasing interest rates.

When the output is below the natural rate level, wages start to decline and increase too slowly, all other things being equal.

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The united states and kenya are exploring the possibility of a trade deal. ________ refers to a situation in which a government does not attempt to restrict what its citizens can buy from or sell to another country.

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Free trade refers to a condition in which a country does not attempt to limit what its citizens can buy from or sell to another country.

Free trade

They can extend new markets, increase gross domestic product, and invite new acquisitions.Countries must negate the domestic advantages of free trade agreements with their results.

Under a free trade policy, goods and services can be purchased and sold across international borders with little or no government tariffs, quotas, grants, or prohibitions to inhibit their exchange. The idea of free trade is the opposite of economic isolationism.

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What value does implementing a performance management program bring to the business? how can technology impact that value?

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Implementing a performance management program brings to the business helps employees to understand the goals of the company and what they are expected to do to achieve these goals.

The process of ensuring that a set of actions and outputs achieves the objectives of an organisation effectively and efficiently is known as performance management. Performance management might concentrate on the performance of a company, a division, a worker, or the systems in place to handle certain tasks.

People may perform to the best of their ability and produce the highest-quality work most effectively and efficiently with the aid of performance management tools.

The foundational principle of performance management is to consider each person in light of the larger workplace system.

Performance management develops a clear awareness of expectations by placing a strong emphasis on accountability and openness.

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Producing a product or service and making it available to buyers requires building relationships not only with customers but also with key suppliers and resellers in the company's ________.

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Producing a product or service and making it available to buyers requires building relationships not only with customers but also with key suppliers and resellers in the company's supply chain.

To create and sell a product, a supply chain is created which is the network of all the individuals, organizations, activities, resources, and technology combined.

The accurate information about a supply chain saves companies money. Thus, it helps manufacturers and retailers produce and transport only what they can sell. This eliminates the unnecessary expenses.

For instance, the supply chain activities can include farming, designing,  manufacturing, packaging, or transporting.

Hence, the supply chain builds relationships.

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The amount a seller receives for a good minus the minimum amount he/she is willing to accept, is referred to as:_______

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The amount a seller receives for a good minus the minimum amount he/she is willing to accept is referred to as Producer surplus.

Producer surplus is the distinction between how a lot a person would be inclined to accept for a given quantity of an excellent as opposed to how a great deal they could receive by way of promoting the good on the market price. The difference or surplus amount is the benefit the manufacturer receives for promoting the coolest in the marketplace.

A consumer surplus happens while the rate that clients pay for a product or service is less than the charge they're willing to pay.

Producer surplus is the quantity a seller is paid for an amazing minus the vendor's price. It measures the benefit to sellers taking part in a market.

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When people speak about the bottom line, they are referring to:______.
a. gross profit
b. net profit
c. gross margin
d. gross margin

Answers

When people speak about the bottom line, they are referring to net profit.

The final line of the income statement is referred to as the bottom line. Net income is the last item on the line. It is the remaining profit a business has after covering all of its costs.

Net income is sometimes known as "net profit."

Total income less the cost of products sold is referred to as gross profit.

The total pre-tax earnings from the operating activity are referred to as operating profit. It is calculated by subtracting items from the gross profit that are classified as "selling, general, and administrative expenses."

When someone uses terms like "gross profit" or "operational profit," they can be referring to the actual amount stated in a particular currency or they might be referring to a financial ratio called a "profit margin," which is calculated by dividing profit by revenue.

Hence, net profit is the answer.

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