below is a list of activities for jayhawk corporation. required: select whether the transaction increases or decreases assets, liabilities, and stockholders' equity. leave blank if no effect. the first item is provided as an example.

Answers

Answer 1

The effects of the transactions on the assets, liabilities, and stockholders' equity of Jayhawk Corporation are as follows:

                   Assets              Liabilities              Equity

July 3        Increase             No Effect             Increase

July 4        No Effect            Increase              Decrease

July 9        No Effect           No Effect              No Effect

July 14       No Effect           No Effect              No Effect

July 18       Decrease          No Effect              Decrease

July 20      Decrease          Decrease             No Effect

July 27      NOT a relevant transaction (Luke's).

July 30      NOT an applicable transaction (Luke's).

July 31       NO Effect          No Effect             No Effect

What are the effects of transactions on the accounting equation?

Each business transaction affects the accounting equation in one way or another.

The effect may be an increase or a decrease.  Sometimes, a transaction affects only one side of the accounting equation.

For example, an asset may increase and another decreases.  This shows that there is no effect on the total assets.

Transaction Analysis:

July 3 Accounts Receivable (Luke's repair shop) $500 Service Revenue $500

July 4 Repair Expenses $450 Accounts Payable (Luke's repair shop) $450

July 9 Cash $500 Accounts Receivable (Luke's repair shop) $500

July 14 Notes Receivable (Luke's repair shop) $600 Cash $600

July 18 Advertising expenses $110 Cash $110

July 20  Accounts Payable (Luke's repair shop) $450 Cash $450

July 27 Luke's Service Revenue $800

July 30 Luke's Salary Expenses $300

July 31 Cash $600 Notes Receivable (Luke's repair shop) $600

Thus, no matter the transaction effects of the applicable activities on the assets, liabilities, and stockholders' equity of Jayhawk Corporation, the accounting equation remains in balance.

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Question Completion:

For the month of July, the following transactions occurred.

July 3 Jake provides lawn services to Luke's repair shop on account $500

July 4 of Jake's mowers malfunctions. Luke provides repair services to Jake on account $450

July 9 Luke pays $500 to Jake for lawn services provided on July 3

July 14 Luke borrows $600 from Jake by signing a note.

July 18 Jake purchases advertising in a local newspaper for the remainder of July and pays cash, 110

July 20 Jake pays $450 to Luke for services provided on July 6

July 27 Luke performs repair services for other customers for cash, $800

July 30 Luke pays employee salaries for the month, $300

July 31 Luke pays $600 to Jake for money borrowed on July 14 2.


Related Questions

suppose a tornado levels hundreds of homes. as rebuilding begins, how might you analyze the effect this would have on the market for lumber?

Answers

The demand for lumber would increase, increasing both the equilibrium price and quantity.

What is the equilibrium of quantity?When a product is in equilibrium quantity, there is neither a scarcity nor a surplus on the market. When supply and demand cross, the amount of a good that consumers desire to buy is equal to the amount that its manufacturers are supplying.The price at which the quantity provided and demanded are equal is referred to as the equilibrium price. It is established by where the demand and supply curves cross. If more goods or services are produced than are needed to satisfy demand at the going rate, there is a surplus, which pushes prices lower.A market-clearing price often referred to as an equilibrium price, is the consumer cost associated with a good or service when supply and demand are equal or nearly equal. The manufacturer or vendor is free to transfer as many units as they like, and the consumer is free to access as many units as they like.

Suppose a tornado levels hundreds of homes. as rebuilding begins, how might you analyze the effect this would have on the market for lumber?

The demand for lumber would increase, increasing both the equilibrium price and quantity.

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How many years will it take for an initial investment of $19,000 to grow to $35,300 if it is compounded daily at 12 pr?

Answers

It will take 7.15 years for an initial investment of $19,000 to grow to $35,300 if it is compounded daily at 12 pr.

Compounding is the process whereby interest is credited to an existing principal amount as well as to interest already paid. Compounding thus can be construed as interest on interest the effect of which is to magnify returns to interest over time, the so-called “miracle of compounding.

Initial investment = $19000

amount = $35300

rate of interest = 12%

time = (1÷0.12) (35300/ 19000) -1 = 7.15

= 7.15 years.

A 10% interest rate will double your investment in about 7 years (72 ∕ 10 = 7.2); an amount invested at a 12% interest rate will double in about 6 years (72 ∕ 12 = 6). Using the Rule of 72, you can easily determine how long it will take to double your money.

In reality, a 10% investment will take 7.3 years to double ((1.107.3 = 2). The Rule of 72 is reasonably accurate for low rates of return. The chart below compares the numbers given by the Rule of 72 and the actual number of years it takes an investment to double.

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Imagine that you work at a store which sells computer components and you have been made the facilitator of a group whose long term goal is to increase overall sales of the store. what would you do?

Answers

In your PC's Start menu, type "Device Manager," and press Enter to launch the Control Panel's Device Manager. Click the drop-down arrow next to Display adapters, and it should list your GPU right there.

The first place you'll hunt for information on your PC's configuration is Settings > System > About. the best thanks to get there's to right-click on the Windows icon and choose “System” from the menu. This is often a way to check PC parts in line with Microsoft.

Computer hardware, including hard drives, memory, and video cards, are available to get online, in brick-and-mortar stores, and through computer manufacturers. Some stores offer new parts only, while others might also offer used parts. RAM's purpose is to store the short term data that a PC requires to properly operate.

But unlike a tough drive or SSD (solid-state drive), which store data indefinitely, RAM resets when the system is rebooted. For most desktop PCs, you'll be able to expect a computer components minimum three-year lifespan. However, most computers survive five to eight years, looking at upgrading components.

Maintenance is additionally critical, as dust is extremely problematic for PC components. As stated within the aforementioned sections, building a PC in 2022 could be a no-go unless you computer components wish to spend 2x or 3x the amount of cash on PC hardware that you simply would have spent otherwise. In these times when everything is shifting to online consumption, a PC is required quite often.

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Demand curves usually slope ______, and supply curves usually slope _______. a. vertically, horizontally b. horizontally, vertically c. downward, upward d. upward, downward

Answers

Demand curves usually slope downward, and supply curves usually slope upward.

What are Demand Curves?

A demand curve in economics is a graph that shows the connection between the price of a given good and the amount that is desired at that cost. Levels can increase and can be applied to the price-quantity connection for either a specific consumer or for every consumer in a given market. The relationship between a product's price and the quantity that is required is shown graphically. The graph is built with the amount required on the horizontal plane and the price just on the vertical axis. A graph of the demand curve at each price is called a demand curve. Because it is a visual portrayal of the demand schedules, the demand curve is occasionally referred to as a demanding schedule.

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Business units that have slow growth but high market share are considered to be ______ by the bcg matrix. multiple choice question. dogs cash cows stars question marks

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Business units that have slow growth but high market share are considered to be the Entire industry by the BCG matrix. multiple choice question.

The BCG growth-proportion matrix is a device used internally by means of management to evaluate the contemporary nation of fee of a company's gadgets or product traces.

Marketplace share and relative Business proportion can help businesses make strategic decisions to gas their increase. at the same time as absolute market percentage suggests how lots boom capacity a company has within its industry, relative market proportion offers insight on how to perceive and outperform the unique competition.

Is a matrix with a marketing-making plans device that allows managers to devise a balanced product portfolio. It appears in two dimensions, marketplace percentage, and marketplace boom, with the intention to verify new and present products in phrases in their market capability.

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Senior executives at enron had been secretly selling off their stock before losses were public. this practice is known as?

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Senior executives at Enron had been secretly selling off their stock before losses were public. this practice is known as insider trading.

This is further explained below.

What is insider trading.?

Generally, Insider trading is when a public firm's stock or other securities are traded when the trader has important, nonpublic knowledge about the company that is not available to the general public.

It is against the law in many countries to engage in certain types of business dealings while in possession of confidential information.

In conclusion, Senior officials at Enron had been surreptitiously liquidating their stock holdings prior to the company disclosing its losses. Insider trading is the name given to this kind of behavior.

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hich of the following are part of the four required financial statements normally prepared by profit-making organizations for use by investors, creditors, and other external decision makers

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Balance sheet statement is one of the four required financial statements normally prepared by profit-making organizations for use by investors, creditors, and other external decision makers. Therefore, the option B holds true.

What is the significance of a balance sheet?

A balance sheet can be referred to or considered as the financial statement that represents the financial position of the firm as on the given date of the statements.

As per the corporate laws, it is mandatory for a firm to prepare an audited balance sheet as a part of the financial statements to present them to its creditors, investors, and other important personnel.

Therefore, the option B holds true and states regarding the significance of a balance sheet.

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The incomplete question has been completed below for better reference.

Which of the following are part of the four required financial statements normally prepared by profit making corporations for use by investors, creditors, and other external decision makers? Check That Apply.

Annual reports

Balance sheet

Quarterly reports

Statement of stockholders equity

this goal of financial management is superior to other possible goals, since it considers the timing and risks associated with the cash flows expected from management’s decisions.

Answers

Shareholder wealth maximization this goal of financial management is superior to other possible goals. The shareholder wealth maximization (SWM) principle states that maximizing shareholder returns is and should be the goal of all company action.

This entails maximizing the price of a company's common stock from a financial management standpoint. The primary goal of maximizing shareholder wealth is for a company's stock price to rise. Shareholder wealth maximization can be beneficial since it provides a clear goal for a company's managers to work toward in order to develop value. Because the company's net worth has increased, share values have increased as well, enhancing shareholders' wealth.

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the recent trend of making investment decisions based on a mix of financial, social and environmental considerations is known as .

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The recent trend of making investment decisions based on a mix of financial, social and environmental considerations is known as sustainable finances.

In general, sustainable finance refers to the process of taking environmental, social, and governance factors into account when making financial investment decisions, resulting in higher longer-term investments in sustainable economic activities and projects.Sustainable finance is the process of taking environmental, social, and governance (ESG) factors into account when making financial investment decisions, resulting in increasing longer-term investments in sustainable economic activities and projects (European Commission).Sustainable businesses generate significant societal value while operating within environmental restrictions and delivering financial gains in the short and long term. Organizations that fail to handle environmental and social risks will be less resilient to these challenges, thereby jeopardizing their own survival.

This is the meaning of sustainable finances.

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When we assume that consumers want to pay the lowest price possible, we assume that consumers are? cheap. deceitful. rational. informed

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When we assume that consumers want to pay the lowest price possible, we assume that consumers are rational. A consumer is a person or group who intends to order, orders, or utilizes purchased goods, products, or services primarily for personal, social, family, or domestic requirements that are unrelated to entrepreneurial or business activity.

The term is most typically used to describe someone who buys goods and services for personal use. This speech inspired the foundation of World Consumer Rights Day, which is now observed on March 15. During his speech. The right to be informed entails being shielded from false, deceptive, price or substantially misleading information, advertising, labelling, or other practices.

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according to the american marketing association, which of the following is the primary use of marketing research?

Answers

To link the consumer to the marketer marketing research can be done according to the American marketing association.

What is Marketing Research ?

Market research, also called "marketing research," is the process of determining the viability of a new service or product through direct customer research. With the aid of market research, a company may pinpoint its ideal clientele and gather feedback from customers about their interest in the product or service.

This type of research may be conducted internally, by the company itself, or by a third-party market research company. Focus groups, surveys, and product testing are all effective techniques. Typically, test respondents are compensated for their time with free product samples or a small stipend. It takes a lot of research and development to create a new product or service (R&D).

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in today's workplace, soft skills such as communicating clearly, getting along with coworkers, solving problems, and taking initiative are less important than technical or hard skills.

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The given statement is completely true that in today's workplace less importance is given to the soft skills, communicating clearly, and solving problem.

The soft skills mean the extra skill available in a person along with the main skills. In the past time more importance is given to these types of the activities but in present the importance of these activities reduced because the companies now shift their focus to the technical skills or some hard skill instead of soft skills. They do not want that the employee has many skills, but they want that the employee has one technical skill that make him different from the other employees. Hence, the less importance is given to soft skills such as communicating clearly, getting along coworkers, solving problems and other skills.

Hence, The claim that soft skills, effective communication, and problem-solving are accorded less weight in the job today is totally accurate.

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at its core, marketing is based on people or organizations engaging in exchanges with others people or organizations.

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At its core, marketing is based on people or organizations engaging in exchanges with others people or organizations is True.

The idea is that a company ought to try to meet the needs of consumers. This pastime is important due to the fact one of the middle aspects of marketing is to create costs for clients. advertising traditionally has been divided into a fixed of four interrelated choices called the advertising mix, or four ps product, rate, vicinity, and promotion.

Advertising and marketing's most important characteristic is to promote and facilitate change. thru advertising, individuals and groups attain what they need and want with the aid of exchanging services and products with different events. this sort of procedure can arise only whilst there are as a minimum two parties, every of whom has something to offer.no longer simplest do organizations attempt to divide their clients into measurable segments in line with their needs, behaviors, or demographics however additionally their goal to determine the profitability of each phase by way of analyzing its revenue and value impacts.

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What type of financial planning focuses on issues such as paying your monthly rent, paying tuition and fees, and cost of food, while still having some funds to use for entertainment, rest and relaxation?.

Answers

The type of financial planning required that focus on the issue is personal financial planning.

Personal financial planning is an all-encompassing strategy, which is not just limited to those who have a lot of financial resources .Generally, a  financial strategy depends on you against your life shocks, it consists of your savings, assets, debt, and information about your income, and so on.  Personal financial planning  can be defined  as a procedure of arranging someone's finance to meet someone's obligations such as one share of educational expenses,  monthly rents, expenses food  plus along with  saving some amount for individual enjoyment, recreation, and downtime

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Suppose that the government imposes a minimum wage of $9. how many thousands of unskilled workers would be employed at the minimum wage?

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The minimum wage will not impact the unskilled labor market.

Cash that is paid or acquired for work or services, as with the aid of the hour, day, or week. compare residing wage and minimum salary. usually wages. Economics. the percentage of the goods of enterprise obtained through labor for its work (as wonderful from the proportion going to capital).

One of the maximum critical elements of a job for maximum people is the salary it pays. Wages allow employees to make a reside from their labor. additionally, they offer incentives to be productive and constant to an employer. In a broader sense, the wages workers earn gas the economy.

There are two fundamental forms of wages- (1) Nominal wages and (2) real wages. The time period 'nominal wages' refers to cash wages. however the term 'actual wages' refers to the commodities and offerings that the money wages can provide. the same old living of workers rely on actual wages and now not on cash wages.

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A cost that contains both variable and fixed cost elements is a(n) ______ cost.

Answers

A value that carries both variable and stuck value elements is a(n)

mixed cost.

In chemistry and physics, an element is a substance that can't be broken down into less difficult additives by way of any non-nuclear chemical reaction. An element is uniquely decided by way of the number of protons in the nuclei of its atoms.

Elements: A substance that can not be damaged down into simpler substances with the aid of a chemical approach. A detail is composed of atoms that have the same atomic variety, that is, every atom has the identical quantity of protons in its nucleus as all other atoms of that element.

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If a brand positioning statement is guided by principles that an organization uses to make decisions and conduct business then it is being driven by:______.

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If a brand positioning statement is guided by principles that an organization uses to make decisions and conduct business then it is being driven by the brand's core values.

A brand positioning statement provides a succinct, clear explanation of what your brand does, or organization does, who it targets, and its advantages. The statement will often be an internal document, but it should be followed to make sure all information is uniform. The positioning statement, not a slogan, is typically utilized as an internal only document. To be understood and remembered by the staff, it must be brief.

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A utility company obtains an easement in gross to run power lines over your property. as a result, your property would become a?

Answers

A utility company obtains an easement in gross to run power lines over your property. As a result, your property would become a servient tenement.

A servient estate is a parcel of land this is problem to an easement. The easement may be an easement in gross, an easement that benefits an individual or other entity, or it is able to be an easement appurtenant, an easement that benefits any other parcel of land. The proprietor of the land via which the easement passes is called the 'servient' proprietor. historically, the word "tenement" supposed any permanent residential assets used for apartment purposes. it may refer to houses, land, and different buildings and the rights connected to this assets.the two parties to an easement are the “Servient tenement” and the “Dominant tenement”. The Servient tenement is the land over which the easement is registered and the Dominant tenement is the land which has the benefit of the easement.

An easement is a privilege or proper that the owner of 1 parcel of real property (referred to as a dominant estate or dominant tenement) has regarding another parcel of an property (referred to as a servient property), and the owner of a servient estate is obligated not to interfere with that privilege.

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cost effectiveness of testing for cyp2c19 loss-of-function carriers following transient ischemic attack/minor stroke: a canadian perspective

Answers

Cost effectiveness of testing for cyp2c19 loss-of-function carriers following transient ischemic attack/minor stroke this statement for "Markov cohort model."

This is an investigation report. Salient features of this report are:

After initiation of a transient ischemic attack (TIA) or small stroke, the CHANCE-2 study compared 3 weeks of aspirin-ticagrelor versus aspirin-clopidogrel in CYP2C19 loss-of-function (LOF) allele carriers, and found a marginally decreased risk of stroke recurrence with aspirin-ticagrelor.

A lifetime horizon decision-analytic Markov cohort model was used to conduct a cost-effectiveness analysis to compare the costs and health benefits of testing for the LOF allele status to not testing (current standard of care). The target demographic was Canadian-based patients.

Results: Using a willingness-to-pay threshold of CAD$50,000 per QALY, the probabilistic sensitivity analysis showed that LOF allele testing was economical in more than 99.99% of simulations.

Based on the currently available information, testing for the LOF allele followed by three weeks of aspirin-ticagrelor treatment versus.

The question is incomplete, the complete question is:

Cost effectiveness of testing for cyp2c19 loss-of-function carriers following transient ischemic attack/minor stroke: a Canadian perspective

(a) True

(b) False

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Pompeii, inc., has sales of $47,000, costs of $21,800, depreciation expense of $1,950, and interest expense of $1,700. if the tax rate is 22 percent, what is the operating cash flow, or ocf?

Answers

The net operating cashflows are 18,876 dollars.

What is cashflows ?

The difference between the net amount of cash and its equivalents that enters and leaves a business is known as cash flow. Money received and spent serve as a proxy for inflows and outflows, respectively.

Fundamentally, a company's capacity to maximize long-term free cash flow determines its ability to create value for shareholders. This capacity to generate positive cash flows is also referred to as "cash flow generation" (CFC). The money left over from a company's regular business operations after capital expenditures have been paid for is known as FCF.

When discussing a company's financial activity, we talk about its cash flow.

Spending money indicates outflows of funds, but receiving money indicates inflows of funds.

An accounting tool that demonstrates how a company's cash is used is called a cash flow statement.

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What are four basic assumptions that underlie the financial accounting structure?

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Financial accounting is predicated on four fundamental tenets: (1) economic entity; (2) fiscal term; (3) going concern; and (4) stable dollar. These presumptions are crucial because they serve as the foundation for financial accounting measurement. A business's financial transactions are summarized, analyzed, and reported in the area of accounting known as financial accounting.

Publicly accessible financial statements must be prepared in this. People interested in getting such information for decision-making include shareholders, suppliers, banks, employees, government agencies, business owners, and other stakeholders. International and national accounting standards both govern financial accounting. financial accounting that is used in every jurisdiction is known as generally accepted accounting principles (GAAP).

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chapo’s property was foreclosed on and he is facing a deficiency judgment so the lender can recover losses incurred from the foreclosure process. what type of lien may the lender levy against chapo until the losses are paid?

Answers

Chapo’s property was foreclosed on and he is facing a deficiency judgment so the lender can recover losses incurred from the foreclosure process.

A blanket lien  type of lien is what the lender can  levy against Chapo until the losses are paid

This is further explained below.

What is a blanket lien?

Generally, A blanket lien is a sort of lien that grants the right to confiscate, in the case of nonpayment, all different kinds of assets acting as collateral that is possessed by a debtor.

In conclusion, The lender has the right to seek a deficiency judgment against Chapo in order to recoup any losses that were sustained throughout the foreclosure process. Chapo's property was repossessed.

The lender has the ability to place a blanket lien, which is a sort of lien, on Chapo until the losses are paid in full.

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maben company was started on january 1, year 1, and experienced the following events during its first year of operation:

Answers

Maben company was started in January within a year of its event operation the Acquired $33,000 cash.

What are Event Operations?

Events like festivals, conferences, ceremonies, marriages, formal parties, concerts, or conventions can be created and developed on a small-scale or large-scale using the project management methodology. The department in charge of coordinating and integrating all other operations within an event and any linked venues is known as Event Operations. While carrying out events, the event operations manager makes sure that all logistical requirements are met following the event schedules. He or she oversees the event plans and collaborates closely with other departments to make sure that all of the events' operational needs are met. You must have a thorough understanding of the business and its procedures to succeed as an event operations manager.

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In addition to value, what characteristics are being addressed in a vrio analysis? rarity imitability obsolescence replacement organization

Answers

In addition to value, the characteristics that are being addressed in a vrio analysis are:

Rarity Imitability Organization.

What is vrio analysis?

VRIO  business analysis can be described as the framework which make up the part of a firm's larger strategic scheme.

This analysis make use of the  process where the  firm begins with a vision statement, then proceed with the  objectives as well as the internal & external analysis, , hence the vrio analysis are:

Rarity Imitability Organization.

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The bws corporation stock is selling at $50 a share today. round your answers to the nearest dollar calculate the value of a bws call option if its exercise price is $30 and it expires today?

Answers

Yhe value of a bws call option if its exercise price is $30 and it expires today is zero.

A corporation, sometimes called a C corp, is a legal entity that's separate from its owners. Corporations can make a profit, be taxed, and can be held legally liable. Corporations offer the strongest protection to their owners from personal liability, but the cost to form a corporation is higher than otherstructures.

First, we need to calculate the value of the put option if its exercise price is $40 and it expires today:

Value of the put option = Excercise price - Stock price

Value of the put option = $40 - $50

Value of the put option = $0

The value of the put option cannot be negative

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describes how you would collect requirements for this system and include at least five requirements.

Answers

​Collecting requirements for a venture involves defining and documenting the capabilities and features of the goods for the venture in addition to the strategies used for growing them. The assignment team creates necessities documentation and a demand traceability matrix as outputs of the requirements collection manner.

Requirements entail defining and documenting the functions and features of the products produced during the task in addition to the tactics used for creating them. it's far often hard to acquire requirements because it is tough for clients to articulate their needs earlier than they see the give-up product.

Requirements collection amassing is an important method in task control, without this, it's miles simply not possible to efficiently meet task desires. The necessities amassing manner presents a team with the direction that is based on the necessities a purchaser has diagnosed.

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Identify and describe the four distinct categories that comprise the sport product.

Answers

Answer:

The four distinct

product

promotion

price

place

Lucas wants to buy a new car. Before he makes a final purchase, he decides to do a full web-based information search. He also talks with his family and friends to gain even more knowledge. What type of decision-making is this an example of?.

Answers

this decision-making is an example of extended problem solving

Among the three methods of problem solving, adaptive is not one. One of the fundamental principles of decision-making is adaptivity, which describes how people learn through experience to select the options that suit them the best. B) Low participation decisions are made through routine problem solving. Routine or habitual decisions are made using this sort of decision-making. A new car purchase is not a common or automatic choice. C) High participation decisions are made using extended problem-solving techniques. The buyer follows a methodical process as they make their decision. Since this is a significant purchase for Lucas, he takes the time to thoroughly research it and consult with experts. Since this was a decision that required a lot of his involvement, Lucas employed prolonged problem solving.

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Which of these items is most likely to have perfectly inelastic price elasticity of demand?

Answers

The most effective factor near a superbly inelastic proper might be air and water, which nobody demands.

An example of flawlessly inelastic call for could be a lifesaving drug that people will pay any fee to acquire. even if the rate of the drug could increase dramatically, the amount demanded could continue to be unchanged.

Fee elasticity of call for is stated to be elastic if the proportion change in amount demanded is greater than the proportion exchange in fee.

Fee elasticity of demand is said to be inelastic if the proportion alternate in amount demanded is lesser than the proportion exchange in rate.

Elastic

movie Tickets

Pizza

Inelastic

gas

insulin for diabetics

power

water

b)  A  existence-saving clinical remedy has flawlessly inelastic demand as although the rate will increase, the call for will no longer decrease as it's far extremely crucial.

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John owns 250 shares of aldridge, inc., stock. what is the current value of his shares?
A. $6,605
B. $8,625
C. $9,640
D. $9,850

Answers

John is the owner of 250 shares in Aldridge, Inc. His shares currently have a value of $8,625.

Units of equity ownership in a firm are called shares. For some businesses, shares are a form of financial property that guarantee an equitable dividend distribution of any declared residual earnings. A company that does not pay dividends does not distribute its income to its shareholders. Instead, they look forward to further stock price appreciation and rising business profits.

The two primary types of shares are common shares and preferred shares. Shares serve as a representation of equity capital in a company. Therefore, the terms "shares" and "stock" are frequently used interchangeably.

Shares outstanding times their respective share prices equals the total market value of the shares.

Value of shares = No of shares * Value per share

                           = 250 * 34.50

                           = 8625

Owners of a firm may decide to distribute either ordinary stock or preferred shares to investors. Companies give equity shares to investors in exchange for money, which is then used to expand and run the business.

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