The tax consequence of the distribution sent to this employee is that the Distribution is subject to federal income tax withholding.
Answer:
seasoned equity offering
Explanation:
A sale by IBM of new stock to the public would be a seasoned equity offering. This term refers to when additional shares or bonds are offered for sale by an existing publicly-traded company, such as IBM in this scenario. Usually, these offerings may include shares sold by existing shareholders, new shares, or even maybe both. But in this particular case are new stocks.
Answer:
price below 25: 25.2493%
price above 28: 36.9441%
Explanation:
median = (min + max) / 2 = (18 + 36) / 2 = 27
standard deviation: in a normal distribution all values are among 6 standard deviaiton: (36 - 18) / 6 = 3
We need to convert the values into a normal distribution of (0;1)
<u>Probability of less than 25:</u>
(X - median) / standard deviation = (25 - 27) / 3 = -0.66667
Now, we look into the normal distribution for this value
P(z< -0.6667) = 0.252492538
<u>Probability of more than 28</u>
1 - probability of less than 28
normalization:
(X - median) / standard deviation = (28 - 27) / 3 = 0.33333
1 - P(z<0.33333)
1 - 0.63055866 = 0.36944134