Answer:
You will have 200 shares of stock, and the stock will trade at or near $60 a share.
Explanation:
When a company declares a 2-for-1 stock split, its shares' value is cut by half, while the number of stocks of each share holder doubles.
If, before the split, the stock had a value of $120 per share, after the stock split it will sell for close to $60 a share.
If you previously had a position of 100 shares of Troll Brothers' stock, after the 2-for-1 split you will have 200 shares.
Therefore, you will have 200 shares of stock, and the stock will trade at or near $60 a share.
Answer:
$2436
Explanation:
LIFO means last in first out. It means that it is the last purchased inventory that is the first to be sold.
total goods sold = (total inventory purchased + beginning inventory) - 60
(36 + 126 + 18) - 60
180 - 60
= 120
the 120 units sold would be taken from the inventory purchased on the 22nd and 7
(18 x 22) + [(120 - 18) x 20]
396 + 2040 = 2436
Answer:
Answer explained below
Explanation:
GIVEN:
options issued = 1000
exercise per share = $6
market price = $20
net income = $50000
a) Diluted earnings per share
= (Total income - preference dividends) /( outstanding shares + diluted shares)
Amount paid towards shares = Options issued * Exercise price per share = 1,000 * 6 = $ 6,000
Value of options = Amount paid towards shares / Current market price = $ 6,000 /$ 20 = 300
Diluted shares = Options issued - value of options = 1000 - 300 = 700
So Diluted Earnings per share = ( 50,000) / ( 10,000 +700) = $ 4.67 per share.
b) Calculation of diluted shares 700 (same as above )
Weighted average for the period holding i.e, 3 months = 700 *3/12 = 175 shares increased during the period.
Diluted EPS = 50,000 /(10,000 +175) = $ 4.91 per share
Answer:
Weight w1 = 0.65
Weight w2 = 0.35
Expected return =10.75%
Explanation:
w1 + w2 = 1 ........... (1)
w1 = SD of asset 2/(SD of asset 1 + SD of asset 2)
w1 = 11 ÷ (6 + 11) ⇒ 0.65
∴ w2 = 1 - w1 ⇒ 1 - 0.65
w2 = 0.35
Expected return = Weighted average
[0.65 × 9] + [0.35 × 14] ⇒ 10.75%
