FUNDAMENTAL ACCOUNTING PRINCIPLES
FUNDAMENTAL ACCOUNTING PRINCIPLES
24th Edition
ISBN: 9781260811704
Author: Wild
Publisher: MCG
Question
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Chapter 13, Problem 3E
To determine

Issuance of Stock at par, stated and no-par:

Par value and stated value are the value of a stock as mentioned in the issuing company's charter. It is the minimum amount that must be paid per share and it's the value which is printed on the share certificate.

To Understand:

Accounting entries involved for issuing shares at par, stated and no par.

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If $12,000 was generated from operations, $6,000 was used for investing activities, and $4,000 was provided by financing activities, the cash balance would: A. increase by $2,000. B. increase by $14,000. C. increase by $10,000. D. decrease by $20,000. D. $96.40 Team Shirts, Inc. had net cash from operating activities of $50,000. It paid $40,000 to buy a new computer system by signing a $30,000 note and paying the balance. Net cash from (or used for) investing activities for the period was a. $40,000 b. ($10,000) c. $10,000 d. ($40,000) Suppose Boyson Inc.'s free cash flow for next year is FCF1 = $150,000, and FCF is expected to grow at a constant rate of 6.5%. If WACC Is 11.5%, what is Its total corporate value? a. $2,707,500 b. $3,195,000 c. $2,572,125 d. $2,816,901 e. $3,000,000 QUESTION 7

Chapter 13 Solutions

FUNDAMENTAL ACCOUNTING PRINCIPLES

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