May 29th, 2015
Studypool Tutor
Price: $10 USD

Tutor description


Word Count: 360
Showing Page: 1/4
Week E11.15 ExercisesExercise 11-15Before AfterAfterActionDividendStock SplitStockholders equityPaid in capitalCommon stock,$10 par600,000630,000600,000Paid in capital in excess par value0 .12,0000Total paid in capital600,000642,000600,000Return earnings900,000858,000900,000Total stock holders equity 1,500,0001,500,0001,500,000Outstanding shares60,00066,000120,000Exercise 12-11. Companies purchase investments in debt or stock securities because they have excess cash, earnings from investment income, and strategic reasons.2. A company will have excess cash it does not need for operations because of seasonal fluctuates it sales. The company will use excess funds for a bigger return than holding in the bank.3. A typical investment when investing cash for a short period of time would be a short term government security. 4. A typical investment when investing in cash to generate earnings would be investing in debt.5. A company would invest in securities that provide zero cash flow for strategic reasons such as influence over customers or make presence known by a related company in the industry.6. A ty

Review from student

Studypool Student
" Excellent job "
Ask your homework questions. Receive quality answers!

Type your question here (or upload an image)

1828 tutors are online

Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors