On January 1, 2010, Belmont Corporation had 50,000 shares of $10 par value common stock issued and outstanding. All 50,000 shares had been issued in a prior period at $15 per share. On February 1, 2010, Belmont purchased 2,000 shares of treasury stock for $18 per share and later sold the treasury shares for $20 per share on March 2, 2010 . The entry to record the sale of the treasury shares on
March 2, 2010, would be:
a. Cash 40,000
Treasury Stock-Common 40,000
b. Cash 40,000
Treasury Stock-Common 36,000
Paid-in Capital, Treasury Stock 4,000
c. Cash 40,000
Treasury Stock-Common 36,000
Retained Earnings 4,000
d. Cash 40,000
Treasury Stock-Common 36,000
Gain on Treasury Stock 4,000
B
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You have been hired as a consultant by Feludi Inc.'s CFO, who wants you to help her estimate the cost of capital. You have been provided with the following data: rRF = 4.10%; RPM = 5.25%; and b = 1.30. Based on the CAPM approach, what is the cost of common from reinvested earnings?
A. 9.67% B. 9.97% C. 10.28% D. 10.60% E. 10.93%
The body’s reactions to environmental demands is known as ______.
a. reflex b. stress c. urgency d. instinct
An active listener
a. listens only for facts. b. has a confident, positive attitude. c. does not take notes. d. avoids using body language.
The principal advantages of strategic alliances over vertical integration or horizontal mergers/acquisitions are
A. potential profitability of the alliance and related experience-curve economics. B. resource pooling and risk sharing, more adaptive response capabilities, and greater speed of deployment. C. the facilitation of best practices, more production capacity, and relevant synergistic savings. D. material additions to a company's technological capabilities, strengthening of the firm's competitive position, and boosting of its profitability. E. the transactional and relational concept of operating practices and competencies.