Which of the following is true about an equity offering under Regulation D? All participants must be accredited investors Up to 35 investors may be unaccredited investors An accredited investor must have net worth of $5,000,000 A couple earning $150,000 per year is an accredited investor
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- Which of the following is true about an equity offering under Regulation D?
- All participants must be accredited investors
- Up to 35 investors may be unaccredited investors
- An accredited investor must have net worth of $5,000,000
- A couple earning $150,000 per year is an accredited investor
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- You are considering a stock investment in one of two firms (LotsofDebt, Inc. and LotsofEquity, Inc.), both of which operate in the same industry. LotsofDebt, Inc. finances its $38.00 million in assets with $33.75 million in debt and $4.25 million in equity. LotsofEquity, Inc. finances its $38.00 million in assets with $4.25 million in debt and $33.75 million in equity. Calculate the debt ratio. (Round your answers to 2 decimal places.) Calculate the equity multiplier. (Round your answers to 2 decimal places.) Calculate the debt-to-equity. (Round your answers to 2 decimal places.)You are considering a stock investment in one of two firms (LotsofDebt, Inc. and LotsofEquity, Inc.), both of which operate in the same industry. LotsofDebt, Inc. finances its $38.00 million in assets with $33.75 million in debt and $4.25 million in equity. LotsofEquity, Inc. finances its $38.00 million in assets with $4.25 million in debt and $33.75 million in equity. Calculate the debt ratio. (Round your answers to 2 decimal places.) debt ratio Lotsofdebt Inc: % Lotsofequity Inc: % Calculate the equity multiplier. (Round your answers to 2 decimal places.) Equity Multiplier Lotsofdebt Inc: Timess Lotsodequity Inc: Times Calculate the debt-to-equity. (Round your answers…You are considering a stock investment in one of two firms (LotsofDebt, Inc. and LotsofEquity, Inc.), both of which operate in the same industry. LotsofDebt, Inc. finances its $36.00 million in assets with $33.00 million in debt and $3.00 million in equity. LotsofEquity, Inc. finances its $36.00 million in assets with $3.00 million in debt and $33.00 million in equity. Calculate the debt ratio. (Round your answers to 2 decimal places.) LotsofDebt, Inc. = ___.__% LotsofEquity, Inc. = ___.__% Calculate the equity multiplier. (Round your answers to 2 decimal places.) LotsofDebt, Inc. =______ times LotsofEquity, Inc. = ______ times Calculate the debt-to-equity. (Round your answers to 2 decimal places.) LotsofDebt, Inc. =______ times LotsofEquity, Inc. = ______ times
- Sibongile is considering investing in a newly listed company on the JSE, known as Abital Ltd. She comes to you for advice about whether to invest in their bonds or shares, and has collected the following information from the recently published financial statements: Number of outstanding shares 10 000 000 Earnings 25 000 000 Payout ratio 35% Cost of equity 11% Current market price of one share R10 Number of Bonds outstanding 4 000 000 Abital Ltd recently acquired a patent that expires in 3 years. Their earnings are therefore expected to grow at 20% during these 3 years, after which it will decline to a constant 5%. What is the intrinsic value of Abital ltd?Use the following information on a company’s investments in equity securities to answer questions 1- 2 below. The company’s accounting year ends December 31. Investment Date of acquisition Cost Fair value 12/31/16 Date sold Selling price Ajax Company stock 6/20/16 $40,000 $35,000 2/10/17 $32,000 Bril Corporation stock 5/1/16 20,000 N/A 11/15/16 26,000 Coy Company stock 8/2/16 16,000 16,500 1/17/17 23,000 1. If the above investments are categorized as trading securities, what amount is reported for gain or loss on securities, on the 2016 income statement? 2. If the above investments are categorized as trading securities, what amount is reported for gain or loss on securities, on the 2017 income statement?Please answer with reason for all why the option is correct and why the other options are incorrect 12. During the year, a not-for-profit entity received $30,000 in dividends and $24,000 in interest on its investment portfolio. The entity also accrued $6,000 in interest on the portfolio. The increase in fair value of the portfolio during the year was $8,000. How much should the entity report for investment earnings during the year? A. $62,000. B. $0. C. $60,000. D. $54,000.
- Assume Intervale Railway is considering investing in Pale Co. stock for three months. The investment will represent 5% of the voting stock of Pale Co. How would the investment be classified? a. Significant influence equity investment b. No significant influence equity investment c. Held-to-maturity debt investment d. Controlling interest equity investmentWhich investor would not qualify as "Accredited"? Group of answer choices A.The CFO of the company issuing the security B. An MBA graduate and CPA who now was a net worth of $500,000 through shrewd investments in the last 3 months C. A recent retiree who saved a little over $1M in their 401k during their career D. A university endowmentThe owners are desirous of comparing serval financial transactions and possible outcomes to assist in guiding their decision-making process. They assume that the company will be formed on January 1, 2020 and that Mulatto Company’s charter will authorize 1,000,000 shares of common stock and 400,000, $100 par value, 5% cumulative preferred stock. They have asked you to prepare the company’s journal entries and statement of owner’s equity based on the following information. Issued 45,500 shares of common stock. Stock has par value of 0.30 per share and was issued at $30 per share. Issued 8, 000 shares of preferred stock at par value as payment in exchange for legal services. Exchanged 160,000 shares of common stock for land with an appraised value of $400,000.00 and a building with an appraised value of $650,000.00. Earned Net income $650,000.00. Paid dividends to preferred shareholders as well as $2 per share to common stockholders. Using the info above and as a guide: Prepare the…
- Scenario The owners are desirous of comparing serval financial transactions and possible outcomes to assist in guiding their decision-making process. They assume that the company will be formed on January 1, 2020 and that Mulatto Company’s charter will authorize 1,000,000 shares of common stock and 400,000, $100 par value, 5% cumulative preferred stock. Issued 65,000 shares of common stock. Stock has par value of $0.40 per share and was issued at $30 per share. Issued 10,000 shares of preferred stock at par value as payment in exchange for legal services. Exchanged 200,000 shares of common stock for land with an appraised value of $500,000 and a building with an appraised value of $700,000. Earned Net income $750,000. Paid dividends to preferred shareholders as well as $2 per share to common stockholders. Using the info above and as a guide: Prepare Mulatto Company’s Stockholders equity section of the balance sheet at December 31, 2020. (Hint!!!!!!!) The following information must…Prepare the Statement of Changes in Equity of Camray Traders for the year ended 28 February 2021 using template provided The following must be taken into account:(a) The net profit according to the statement of comprehensive income amounted to R1 400 000 on 28 February2021.(b) The partnership agreement made provision for the following:¦ Interest on capital must be provided at 18% per annum on the balances in the capital accounts.Note: Camy increased her capital by R240 000 on 01 September 2020. Raymond decreased his capital byR120 000 on the same date. The capital changes have been recorded.¦ The partners are entitled to the following monthly salaries:Camy R26 000Raymond R25 000Note: The partners’ salaries were increased by 10% with effect from 01 December 2020.¦ Camy and Raymond share the remaining profits or losses equally.There are some owners who are desirous about comparing many financial transactions and possible outcomes to assist in their decision-making process. These individuals assumes that the business will be formed around January 1st, 2019, and that Hraesvelgr Company’s charter will authorize about 1000000 shares of common stock and 400000, $100 par value, 5% cumulative preferred stock. Issued 15000 shares of common stock. Stock has par value of $0.10 per share and was issued at $30 per share. Issued 5000 shares of preferred stock at par value as payment in exchange for legal services. Exchanged 120,000 shares of common stock for land with an appraised value of $300,000 and a building with an appraised value of $500,000. Earned Net Income $600,000 Paid dividends to preferred shareholders as well as $2 per share to common stockholders. Answer the following questions: Prepare the journal entries with narrations to record the following: insurances of stock, close out net income to retained…