who bears the greatest risk of loss of value if a firm should fail? group of answer choices bondholders common stockholders all of the above bear equal risk of loss. preferred stockholders

Answers

Answer 1
Answer:

Common stockholders bear the greatest risk of loss of value if a firm should fail.

There are two sorts of shareholders in a company: common shareholders and preferred shareholders. They are the owners of common stocks, as their name implies, in a corporation. These individuals enjoy voting rights over matters concerning the company.

A person who has acquired at least one common share of a corporation is referred to as a common shareholder. Common shareholders have entitled to declared common dividends as well as a vote on corporate matters. In the event of bankruptcy, common shareholders are compensated last, following preferred shareholders and debtholders.

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The skill you’re focusing on this week is:

Ernest invents a novel, useful, nonobvious product. He:____.a. must apply for a patent within one year of selling the product commercially.
b. may receive patent protection for two years by filing a simpler, shorter, cheaper provisional patent application while he is working on his complex, regular patent application.
c. is entitled to a patent over someone else who invents the same product if he is the first to invent it.
d. may sell his product for up to five years to see how well it sells before going through the complex process of filing a patent application with the PTO Office.

Answers

Answer:

a. must apply for a patent within one year of selling the product commercially.

Explanation:

As the product is the novel and also useful at the same time so he himself wants to try for the commercial purpose for reaping the benefits and the same should be used for a patent within one year for selling the product commercially manner

So as per the given situation, the option a is correct

And, the rest of the options seems incorrect

If he wanted the cash award of each of the five prizes to be $45,000 and his estate could earn 7% per year, how much would he need to fund his prizes

Answers

Answer:

The answer is $3,214,285.71

Explanation:

Price of each award is $45,000

And there are 5

Therefore, we have 5 x $45,000

=$225,000.

So, $225,000 is the future value.

Rate of return(r) in 7% and it is being assumed that it is forever.

So, so how much will be needed to fund his prizes(present value)?:

PV = FV/r

= $225,000/0.07

=$3,214,285.71

In preparing a statement of cash flows using the indirect​method, the Depreciation Expense​ ________. A. is shown as a negative cash flow under operating activities

B. is added back as an adjustment to Net Income in the operating activities section

C. is added back to Purchases of Plant Assets under investing activities

D. is shown as a negative cash flow in the investing activities section

Answers

Answer:B -

Explanation:Depreciation is added back as an adjustment to the net income in the operating activities section.

Answer:

The correct answer is letter "B": is added back as an adjustment to Net Income in the operating activities section.

Explanation:

Since net income is a starting point for calculating cash flows from operating activities, depreciation costs must be added back to net income if the method being used is the indirect process. Therefore, depreciation spending is recorded in the cash flow statement.

A 7X Corp.just paid a dividend of $2.30 per share. The dividend are expected to grow at 23 percent for the next eight years and then level off to a growth rate of 7 percent indefinitely. If the required return is 15 percent, what is the price of the stock today?

Answers

Answer:

 Price of stock=$ 77.88

Explanation:

The Dividend Valuation Model is a technique used to value the worth of an asset. According to this model, the worth of an asset is the sum of the present values of its future cash flows discounted at the required rate of return.  

The price of the stock will the sum of the present value of the growing annuity and the growing perpetuity

Present value of dividend from year 1 to 8

The PV of the growing annuity = A/r-g) ( 1- (1+g)/(1+r)^n )  

A- dividend payable now , r- required of return, g-growth rate, number of years

PV =  (2.30×1.23)/(0.15-0.23)×   (1- (1.23/1.15)^8) = 25.199

PV of Dividend from year 9 and beyond:

P = D× g/(r-g)  

This will be done in two steps:

Step 1: PV(in year 8)of dividend = 2.30× 1.23^8×1.07/(0.15-0.07) = 161.16

Step 2 : PV in year 0 = 161.16× 1.15^(-8)= 52.684

PV of Dividend from year 9 and beyond =  52.684                                  

Price of stock = 25.19  + 52.68= 77.88

 Price of stock=$ 77.88

the following comparative income statement (in thousands of dollars) for two recent fiscal years was adapted from the annual report of speedway motorsports, inc. (trk), owner and operator of several major motor speedways, such as the atlanta, texas, and las vegas motor speedways.

Answers

Income from continuing operations is $61,011   $41,226

What is the Vertical Analysis of Income Statement?

                                          Current Year              Previous Year

Revenues:

Admissions                                 20.28≅ 20.3           20.81 ≅20.8

Event-related revenue                 29.61 ≅ 29.6              30.32≅30.3

NASCAR broadcasting revenue    43.80≅ 43.8             42.82≅42.8

Other operating revenue                6.31  ≅  6.3            6.05≅6.1

Total revenues                                100%                     100%

Expenses and other:

Direct expense of events                 21.01 ≅ 21.0                21.10≅ 21.1

NASCAR event management fees  29.61≅  29.6                26.48≅ 26.5

Other direct expenses                      3.94  ≅  3.9                3.82≅3.8

General and administrative              35.84 ≅ 35.8                 40.08≅40.1

Total expenses and other                 87.72 ≅  87.7               91.49≅ 91.5

Income from continuing operations 12.23%                       8.51%

                             

Vertical Analysis =(Income Statement Item/ Sales )*100

We prepared a comparative income statement for these two years in vertical form, stating each item as a percent of revenues.

                                               Current Year           Previous Year

Revenues:

Admissions                             $100,694                $100,798

Event-related revenue           146,980                     146,849

NASCAR broadcasting revenue 217,469               207,369

Other operating revenue            31,320                    29,293

Total revenues                        $496,463                 $484,309

Expenses and other:

Direct expense of events         $104,303                    $102,196

NASCAR event management fees 133,682                 128,254

Other direct expenses                     19,541                      18,513

General and administrative             177,926                   194,120

Total expenses and other              $435,452               $443,083

Income from continuing operations $61,011                 $41,226

The complete question is Vertical Analysis of Income Statement The following comparative income statement (in thousands of dollars) for two recent fiscal years was adapted from the annual report of Speedway Motorsports, Inc., owner and operator of several major motor speedways, such as the Atlanta, Texas, and Las Vegas Motor Speedways. Current Year Previous Year Revenues: Admissions $100,694 $100,798 Event-related revenue 146,980 146,849 NASCAR broadcasting revenue 217,469 207,369 Other operating revenue 31,320 29,293 Total revenues $496,463 $484,309 Expenses and other: Direct expense of events $104,303 $102,196 NASCAR event management fees 133,682 128,254 Other direct expenses 19,541 18,513 General and administrative 177,926 194,120 Total expenses and other $435,452 $443,083 Income from continuing operations $61,011 $41,226 a. Prepare a comparative income statement for these two years in vertical form, stating each item as a percent of revenues. Enter all amounts as positive numbers. (Note: Due to rounding, amounts may not total 100%). Round your percentages to one decimal place.

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Final answer:

The comparative income statement for Speedway motorsports Inc. over several fiscal years gives insights into revenue, costs, and profit trends. Increasing revenues coupled with increasing costs might indicate a need for cost efficiency, while a higher rate of profit growth compared to revenues could suggest effective cost management.

Explanation:

The question refers to a comparative income statement of Speedway Motorsports, Inc., a major operator of motor speedways. A comparative income statement compares the income statements of a company across several fiscal years. This can provide valuable insights into how revenues, costs, and profits are developing over time, and thus give indications of how the company's business model is working and where there might be room for improvements.

For example, if Speedway Motorsports' income statements show increasing revenues but also increasing costs, it might indicate that they need to work on cost efficiency. Alternatively, if profits are increasing faster than revenues, it could suggest that their cost management is effective.

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Sparky Corporation uses the weighted-average method of process costing. The following information is available for February in its Molding Department: Units: Beginning Inventory: 28,000 units, 100% complete as to materials and 60% complete as to conversion. Units started and completed: 116,000. Units completed and transferred out: 144,000. Ending Inventory: 31,500 units, 100% complete as to materials and 25% complete as to conversion. Costs: Costs in beginning Work in Process - Direct Materials: $46,000. Costs in beginning Work in Process - Conversion: $51,850. Costs incurred in February - Direct Materials: $316,730. Costs incurred in February - Conversion: $602,150. Calculate the cost per equivalent unit of conversion.

Answers

Answer:

Cost per equivalent unit = 4.015 per unit

Explanation:

Under the weighted average method of valuation, to account for completed units, it is assumed that the entire degree of work required is done in the period under consideration. So there is no separation of the completed units into opening inventory and fully worked.

Cost per equivalent unit = cost / total equivalent units

To determine the conversion cost per equivalent unit, we follow the steps below

Step 1

Determine the total equivalent units

Items                         units                                             Equivalent units

Completed units       144,000      144,000× 100%     144,000

Closing inventory      31,500        31,500 × 60% =     18900

Total equivalent unit                                                   162,900

Step 2

Calculate cost per equivalent unit

Cost per equivalent unit = Total conversion cost/Total equivalent units

                                        = (602,150+ 51,850)/162,900 units

                                         = 4.015 per units