Undertake a high-risk gold mining venture in canada

Assignment Help Accounting Basics
Reference no: EM13221356

Hazel Holden and Cedric Dalton are organizing Calgary Metals Unlimited Inc. to undertake a high-risk gold-mining venture in Canada. Hazel and Cedric tentatively plan to request authorization for 100,000,000 shares of common stock to be sold to the general public. Hazel and Cedric have decided to establish par of $0.02 per share in order to appeal to a wide variety of potential investors. Hazel and Cedric feel that investors would be more willing to invest in the company if they received a large quantity of shares for what might appear to be a "bargain" price. Discuss whether Hazel and Cedric are behaving in a professional manner. Give Detail .  

Reference no: EM13221356

Questions Cloud

What is the economic interpretation of the result : (a) Set up the basic arbitrage equation that will ultimately pin down the value of the patent. On the left side show the return from investing pi dollars in a saving account. On the right, show the return from using these funds to purchase the pat..
Describe how an organization generates and uses its cash : Describe how an organization generates and uses its cash.
Explain the lewis structures that is most important in becl2 : Using formal charges, draw the resonance form from among all the Lewis structures that is most important in describing BeCl2.
Analyze the impact of revenue cycle on cash budget : Analyze the impact of revenue cycle on cash budget and the crucial impact on working capital.
Undertake a high-risk gold mining venture in canada : Hazel Holden and Cedric Dalton are organizing Calgary Metals Unlimited Inc. to undertake a high-risk gold-mining venture in Canada.
Analyze the impact of collections and claim denials : Analyze the impact of collections and claim denials on managing receivables and the revenue cycle of a healthcare organization.
How much to pay for a single share of generic brands stock : Generic Brands is expected to earn a profit of $1 million each year forever into the future. If the interest rate is 5%, and there are 20,000 shares of company stock outstanding, how much will investors be willing to pay for a single share of Gene..
Discuss the various costs and their relationship to planning : Discuss the various costs and their relationship to planning, budgeting, and control.
Explain what are the dimensions of the cube : A perfect cube of aluminum metal weighs 20.00g. The density of of aluminum is 2.70 g/ml. What are the dimensions of the cube?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Journal entries by twin digital

Prepare the journal entries by Twin Digital to record the semiannual interest on July 1, 2011, as well as to record the redemption of the bonds on July 1, 2011.

  Computing taxable income for year

Assume the same facts except that loon's long-term capital gain is $100,000 (instead of $60,000. Compute Loon's taxable income for the year.

  Sarbanes-oxley act-prevention detection

Summarize your ideas about internal controls. An introduction to internal controls, explaining in your own words the two primary goals of internal control. A description of how the Sarbanes-Oxley Act of 2002 has affected internal controls

  Homeowner interest tax credit

What are the pros and cons of this tax credit? Why is this issue of any interest to the NAHB?

  Debited to construction expenditure

In late June, the Everest Construction Co. submitted a progress billing on a construction contract for $500,000. On July 2, the bill was approved for payment, subject to a five percent retention, as provided by the contract. The amount that should..

  Calculate the net cash provided by operating activities

October Corporation reported net income of $46,000 in 2012. Depreciation expense was $17,000 and unrealized holding losses on temporary investments (FV-NI) were $3,000. The following accounts changed as indicated in 2012:

  Petition in bankruptcy

Burton did not notify Wilson of these facts. Two days later when Burton again presented the instrument for payment, Burton was told that Foxx's creditors had filed a petition in bankruptcy that morning. Which of the following statements is true?

  Marketing and administrative expenses

Gilbert expects to receive 70% of his revenues in cash during the month of sale and 30% in the following month. Gilbert receives his dolls on consignment, with the purchase price being due at the time of the sale. Thus, Gilbert's cash outflow for ..

  Problem related to statistical concept

When using classical variables sampling for estimation, an auditor normally evaluates the sampling results by calculating the possible misstatement in either direction. This statistical concept is known as

  Preferred and common stockholders under assumptions

As of December 31, 2011, it is desired to distribute $488,000 in dividends. Insructions: How much will the preferred and common stockholders receive under the following assumptions:

  Amt statutory exemption

Dunn Corporation's taxable income is less than $40,000. The corporation is not eligible for the AMT small corporation exemption. The CPA preparing the return does not calculate the AMT because he knows that taxable income is less than the AMT stat..

  Retained earnings amount basics

ABC declared and paid a $5,000 dividend in June. The June beginning balance in ABC's Cash Account was $35,000 and the June ending balance in the Cash Account was $25,000. The Retained Earnings amount shown on ABC's June 30th Balance Sheet should b..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd