Suppose that the government places a tax on heating oil in order to conserve oil. However, for poor families, the government rebates enough income to ensure that poor consumers are able to achieve the same level of utility after the rebate that they had before the tax was imposed. That is, the poor are no worse off after the tax and rebate than they were to begin with. Will the tax and rebate policy completely eliminate the conservation of oil by the poor? Illustrate and explain using an indifference curve diagram
In: Economics
Causes of the Great Depression After reading Chapter 7 and Special Topic 6, write a 2-page paper answering the following question: Contrary to a popular view, the Great Depression was not caused by the 1929 stock market crash. We have had similar reductions in stock prices to those in 1929 before and after the Great Depression. What historical events took place that directly led to the prolonged depressed conditions like those of the 1930s?
In: Economics
Determine the pH during the titration of 33.7
mL of 0.345 M triethylamine
((C2H5)3N,
Kb = 5.2×10-4) by
0.345 M HI at the following
points. (Assume the titration is done at 25 °C.)
Note that state symbols are not shown for species in this
problem.
(a) Before the addition of any
HI
(b) After the addition of 15.0 mL
of HI
(c) At the titration midpoint
(d) At the equivalence point
(e) After adding 51.9 mL of
HI
In: Chemistry
Consider a 30-year bond that pays semi-annual coupons of $500. The face value of the bond is $100, 000. If the annual yield rate is 3%, calculate the following:
a) the annual coupon rate of the bond
b) the price of the bond, one period before the first coupon is paid
c) the price of the bond, immediately after the 15th coupon is paid
d) the price of the bond, 2 months after the 30th coupon is paid
*No financial Calculator*
In: Finance
Determine the pH during the titration of 33.6 mL of 0.295 M methylamine (CH3NH2, Kb = 4.2×10-4) by 0.295 M HClO4 at the following points. (Assume the titration is done at 25 °C.) Note that state symbols are not shown for species in this problem.
(a) Before the addition of any HClO4
(b) After the addition of 12.4 mL of HClO4
(c) At the titration midpoint
(d) At the equivalence point
(e) After adding 49.1 mL of HClO4
In: Chemistry
A pharmaceutical company will spend $1,500,000 each year for 3 years to develop a new drug (years 0, 1, 2). After that (starting year 3), they will earn $900,000 in profits per year for 8 years before thepatent runs out. No extra profits after the patent is gone. If future payments are discounted using a 10% interest rate (compounded annually), is this new drug a profitable venture? Should you lease or buy equipment?
In: Finance
Determine the pH during the titration of 36.0
mL of 0.235 M trimethylamine
((CH3)3N,
Kb = 6.3×10-5) by
0.235 M HBr at the following
points. (Assume the titration is done at 25 °C.)
Note that state symbols are not shown for species in this
problem.
a.) Before the addition of any HBr
b.) After the addition of 15.3 mL of HBr
c.) At the titration midpoint
d.) At the equivalence point
e.) After adding 56.2 mL of HBr
In: Chemistry
Mastery Problem: Corporations: Organization, Stock Transactions, and Dividends
Pranks, Inc.
Pranks, Inc. is a manufacturer of joke and novelty products for perpetrators of practical jokes. The corporation has paid several cash dividends throughout Year 6, the current year. It is also declaring a stock dividend to its stockholders as the calendar year-end approaches. You’ve been brought in as a consultant to assist with this process, and also to help determine whether some missing information can be determined before the distribution of the stock dividend is made. The company has two classes of stock: common stock and cumulative preferred stock.
Number of common shares authorized900,000
Number of common shares issued750,000
Par value of common shares$20
Par value of cumulative preferred shares$30
Paid-in capital in excess of par-common stock$7,000,000
Paid-in capital in excess of par-preferred stock$0
Total retained earnings before the stock dividend is declared$33,500,000
No treasury share have been reissued.
Preferred DividendsCommon Dividends
YearTotal Cash
DividendsTotalPer ShareTotalPer Share
Year 130,000 30,0000.20 00.00
Year 254,000 54,0000.36 00.00
Year 396,000 51,0000.34 45,0000.09
Year 4120,000 45,0000.3 75,0000.15
Year 5135,000 45,0000.3 90,0000.18
Year 6195,000 45,0000.3 150,0000.3
Cash Dividends
The accounting manager for the company prepared the schedule of cash dividends paid from Year 1 to Year 6 on the Pranks, Inc. panel. However, one of the reasons for Pranks, Inc.’s missing information is that the manager is away on vacation and is unreachable by phone, because he is backpacking on a remote island that does not have cell phone reception. Management would like you to determine some information from the data you’ve collected regarding its outstanding stock.
Fill in the following answers.
How many shares of common stock are outstanding?
How many shares of preferred stock are outstanding?
What is the preferred dividend as a percent of par?
%
Feedback
Review the definitions of the items, and the amounts that are included in their computation.
Additional Questions
1. After completing the Cash Dividends panel, answer the following question.
Does Pranks, Inc. have any treasury stock? How can you tell?
Yes, because the number of shares issued is greater than the number of shares outstanding.
2. In which years has Pranks, Inc. paid cumulative preferred dividends in arrears?
a.Year 1
b.Year 2
c.Year 3
d.Year 4
e.Year 5
f.Year 6
b and c
Stock Dividend
The company declared a 2% common stock dividend on December 1, and would like you to compute the following pieces of missing information. The market value of the common shares is $26 on December 1, and is $32 on the actual distribution date of the stock, December 31.
Fill in the missing information in the following table, using the information given and your work on the other panels. All “before” items are before the stock dividend was declared. All “after” items are after the stock dividend was declared and closing entries were recorded at the end of the year.
Total paid-in capital before the stock dividend$
Total retained earnings before the stock dividend
Total stockholders’ equity before the stock dividend$
Total paid-in capital after the stock dividend$
Total retained earnings after the stock dividend
Total stockholders’ equity after the stock dividend
In: Accounting
Mastery Problem: Corporations: Organization, Stock Transactions, and Dividends Pranks, Inc. Pranks, Inc. is a manufacturer of joke and novelty products for perpetrators of practical jokes. The corporation has paid several cash dividends throughout Year 6, the current year. It is also declaring a stock dividend to its stockholders as the calendar year-end approaches. You’ve been brought in as a consultant to assist with this process, and also to help determine whether some missing information can be determined before the distribution of the stock dividend is made. The company has two classes of stock: common stock and cumulative preferred stock. Number of common shares authorized 900,000 Number of common shares issued 750,000 Par value of common shares $20 Par value of cumulative preferred shares $30 Paid-in capital in excess of par-common stock $7,000,000 Paid-in capital in excess of par-preferred stock $0 Total retained earnings before the stock dividend is declared $33,500,000 No treasury share have been reissued. Preferred Dividends Common Dividends Year Total Cash Dividends Total Per Share Total Per Share Year 1 30,000 30,000 0.20 0 0.00 Year 2 54,000 54,000 0.36 0 0.00 Year 3 105,000 51,000 0.34 54,000 0.09 Year 4 135,000 45,000 0.3 90,000 0.15 Year 5 153,000 45,000 0.3 108,000 0.18 Year 6 225,000 45,000 0.3 180,000 0.3 Cash Dividends The accounting manager for the company prepared the schedule of cash dividends paid from Year 1 to Year 6 on the Pranks, Inc. panel. However, one of the reasons for Pranks, Inc.’s missing information is that the manager is away on vacation and is unreachable by phone, because he is backpacking on a remote island that does not have cell phone reception. Management would like you to determine some information from the data you’ve collected regarding its outstanding stock. Fill in the following answers. How many shares of common stock are outstanding? How many shares of preferred stock are outstanding? What is the preferred dividend as a percent of par? % Additional Questions 1. After completing the Cash Dividends panel, answer the following question. Does Pranks, Inc. have any treasury stock? How can you tell? 2. In which years has Pranks, Inc. paid cumulative preferred dividends in arrears? a. Year 1 b. Year 2 c. Year 3 d. Year 4 e. Year 5 f. Year 6 Stock Dividend The company declared a 2% common stock dividend on December 1, and would like you to compute the following pieces of missing information. The market value of the common shares is $26 on December 1, and is $30 on the actual distribution date of the stock, December 31. Fill in the missing information in the following table, using the information given and your work on the other panels. All “before” items are before the stock dividend was declared. All “after” items are after the stock dividend was declared and closing entries were recorded at the end of the year.
Total paid-in capital before the stock dividend $
Total retained earnings before the stock dividend $
Total stockholders’ equity before the stock dividend $
Total paid-in capital after the stock dividend $
Total retained earnings after the stock dividend $
Total stockholders’ equity after the stock dividend $
In: Accounting
Mastery Problem: Corporations: Organization, Stock Transactions, and Dividends
Pranks, Inc.
Pranks, Inc. is a manufacturer of joke and novelty products for perpetrators of practical jokes. The corporation has paid several cash dividends throughout Year 6, the current year. It is also declaring a stock dividend to its stockholders as the calendar year-end approaches. You’ve been brought in as a consultant to assist with this process, and also to help determine whether some missing information can be determined before the distribution of the stock dividend is made. The company has two classes of stock: common stock and cumulative preferred stock.
| Number of common shares authorized | 900,000 |
| Number of common shares issued | 750,000 |
| Par value of common shares | $20 |
| Par value of cumulative preferred shares | $30 |
| Paid-in capital in excess of par-common stock | $7,000,000 |
| Paid-in capital in excess of par-preferred stock | $0 |
| Total retained earnings before the stock dividend is declared | $33,500,000 |
| No treasury share have been reissued. |
| Preferred Dividends | Common Dividends | ||||
| Year | Total Cash Dividends |
Total | Per Share | Total | Per Share |
| Year 1 | 30,000 | 30,000 | 0.20 | 0 | 0.00 |
| Year 2 | 54,000 | 54,000 | 0.36 | 0 | 0.00 |
| Year 3 | 105,000 | 51,000 | 0.34 | 54,000 | 0.09 |
| Year 4 | 135,000 | 45,000 | 0.3 | 90,000 | 0.15 |
| Year 5 | 153,000 | 45,000 | 0.3 | 108,000 | 0.18 |
| Year 6 | 225,000 | 45,000 | 0.3 | 180,000 | 0.3 |
Cash Dividends
The accounting manager for the company prepared the schedule of cash dividends paid from Year 1 to Year 6 on the Pranks, Inc. panel. However, one of the reasons for Pranks, Inc.’s missing information is that the manager is away on vacation and is unreachable by phone, because he is backpacking on a remote island that does not have cell phone reception. Management would like you to determine some information from the data you’ve collected regarding its outstanding stock.
Fill in the following answers.
How many shares of common stock are outstanding?
How many shares of preferred stock are outstanding?
What is the preferred dividend as a percent of par?
%
Additional Questions
1. After completing the Cash Dividends panel, answer the following question.
Does Pranks, Inc. have any treasury stock? How can you tell?
2. In which years has Pranks, Inc. paid cumulative preferred dividends in arrears?
| a. | Year 1 |
| b. | Year 2 |
| c. | Year 3 |
| d. | Year 4 |
| e. | Year 5 |
| f. | Year 6 |
Stock Dividend
The company declared a 2% common stock dividend on December 1, and would like you to compute the following pieces of missing information. The market value of the common shares is $26 on December 1, and is $30 on the actual distribution date of the stock, December 31.
Fill in the missing information in the following table, using the information given and your work on the other panels. All “before” items are before the stock dividend was declared. All “after” items are after the stock dividend was declared and closing entries were recorded at the end of the year.
| Total paid-in capital before the stock dividend | $ |
| Total retained earnings before the stock dividend | |
| Total stockholders’ equity before the stock dividend | $ |
| Total paid-in capital after the stock dividend | $ |
| Total retained earnings after the stock dividend | |
| Total stockholders’ equity after the stock dividend | $ |
In: Accounting