Answer:
Sells with 2 days:
$
4,608,000
$6,144,000
Sells within 4 days
$4,704,000
$6,272,000
Explanation:
The computation sell of two days and four days is shown below:-
Sells with 2 days:
Value of fixed-income securities = $40,000,000 × 0.96
= $38,400,000
Value of stock =$40,000,000 × 0.96
= $38,400,000
Total value = $76,800,000
Shareholder A gets from 6% of equity = $76,800,000 × 6%
= $
4,608,000
Shareholder B gets from 8% of equity = $76,800,000 × 8%
= $6,144,000
Sells within 4 days
Value of fixed-income securities = $40,000,000 × 0.98
= $39,200,000
Value of stock =$40,000,000 × 0.98
= $39,200,000
Total value =$78,400,000
Shareholder A gets from 6% of equity = $78,400,000 × 6%
= $4,704,000
Shareholder B gets from 8% of equity = $78,400,000 × 8%
= $6,272,000
