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nikdorinn [45]
4 years ago
9

Bugs McGee receives a 25% nontaxable stock dividend (25 shares) of Roberto Corporation common stock with a fair market value on

the date of distribution of $1,000. Bugs previously owned 100 shares of Roberto Corporation common stock which he purchased ten years ago for $8,000.a) The basis per share of the 25 shares of Roberto Corporation stock is:b) The new basis per share of the original 100 shares of Roberto Corporation stock is:
Business
1 answer:
gtnhenbr [62]4 years ago
7 0

Answer:

a ) <em>The basis per share of the 25 shares of Roberto Corporation stock.</em>

Basis of stock now distributes over 125 shares. Existing basis is $8,000.

Basis of 125 shares = 8,000

Basis of 25 shares = 25 X 8000/125

                               = 1,600

b)  <em>The new basis per share of the original 100 shares of Roberto Corporation stock.</em>

Basis of 100 shares = 100 X 8,000/125

                                 = 6,400

Explanation:

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Answer:

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Explanation:

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8 0
4 years ago
Select the correct answer.
levacccp [35]

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3 years ago
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Valorous Corporation will pay a dividend of $ 1.75 per share at this​ year's end and a dividend of $ 2.35 per share at the end o
IgorLugansk [536]

Answer:

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Explanation:

In order to calculate the maximum price that a prudent investor would be willing to pay for a share of Valorous stock​ today we would have to use the following formula:

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The maximum price that a prudent investor would be willing to pay for a share of Valorous stock​ today is $37.92

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