Which of the following is/are true regarding stock splits?
a. The corporation issues additional shares of stock to shareholders in proportion to their existing holdings.
b. The firm receives no additional assets.
c. Firms may execute a stock split by reducing the par value of the common stock in proportion to the new number of shares issued.
d. Firms may execute a stock split by not making any change in par value but by issuing additional shares of the same par value.
e. all of the above
E
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Aqua Corp. purchased 30% of the common stock of Marcus Co. by paying $500,000. Of this amount, $50,000 is associated with goodwill.Required: Prepare the journal entry to record Aqua's investment.
What will be an ideal response?
The net present value assumes that cash inflows are reinvested at the net present value.?
Answer the following statement true (T) or false (F)
The points where constraints intersect on the boundary of the feasible region are termed as _____
a. feasible points b. extreme vertices c. extreme points d. feasible edges
A CPA who fraudulently performs an audit of a corporation's financial statements will
A. Probably be liable to any person who suffered a loss as a result of the fraud. B. Be liable only to the corporation and to third parties who are members of a class of intended users of the financial statements. C. Probably be liable to the corporation even though its management was aware of the fraud and did not rely on the financial statements. D. Be liable only to third parties in privity of contract with the CPA.