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scoundrel [369]
3 years ago
11

Courtney invested in RAD, Inc. stock 9 months ago. She is considering tax planning strategies at the end of the year and is pond

ering whether or not to sell her investment in the stock. A friend has advised Courtney that she should hold the stock for at least 3 or more months in order to have a long-term holding period. What considerations describes a valid reason for selling the stock now? Courtney is concerned that the value of the stock will decline in the near future.
Business
1 answer:
sukhopar [10]3 years ago
8 0

Answer:

What considerations describes a valid reason for selling the stock now? Courtney is concerned that the value of the stock will decline in the near future. TRUE

Explanation:

Since Courtney invested in RAD, Inc., 9 months ago, any profit she makes will be taxed as normal income. So her friend's advice about holding the stock for 3 more months is a valid argument since any profits would be taxed as long term capital gains (which is taxed at a much lower rate).

The only reason why Courtney should sell the stocks now (or any time before the first year ends), is that she is afraid that the price of the stocks falls sharply in the near future.

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Which of the following is a characteristic of both the sales approach for service-type warranties and the expense approach for a
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Explanation:

Unearned warranty revenue is usually shown as an unearned revenues in the accrued liabilities during the preparation of the balance sheets.

It should be noted that the unearned warranty revenue is a characteristic of both the sales approach for service-type warranties and the expense approach for assurance-type warranties.

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G wholesalers who own the merchandise they sell but do not physically handle, stock, or deliver it are referred to as __________
Murljashka [212]
Merchants is the answer to the question.
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If total assets are $75000 and total liabilities are $25000 the amount of owner's equity is $25000
zhuklara [117]

Answer:

B.False

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2 years ago
Read 2 more answers
Why is it important that ""links live forever"" when designing an internet-based electronic commerce system?
Elenna [48]

"Links live forever" is very important when designing commercial internet based electronic sites. Link live forever has the following 4 important reasons:

  1. Customer bookmarks
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  4. Old content adds value

When designing an electronic internet-based site, it is important that all the links live forever. The reasons are:

  1. Customer bookmarks: When the website is live, customers who are interested in your specific product may bookmark that page for later use. For example, customers bookmark a link that navigates them later to that page. If the link is live, then customers visit that link/page again without any hassles.  
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You can learn more about commercial website at brainly.com/question/18119179

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5 0
2 years ago
Common stock valuelong dash—Variable growth Personal Finance Problem
xenn [34]

Answer:

$24.18

Explanation:

Dividend for year 0 = $2.2

Dividend at year end 1 = $2.2

Dividend at year end 2 = $2.2(1 + .05) = 2.31

Dividend at year end 3 = $2.31 (1 + .05) = 2.4255

Dividend at year end 4 = $2.4255 (1 + .17)= 2.8378

Dividend at year end 5 = $2.8375 (1 + .09)= 3.0932

Dividend at year end 6 = $3.0932 (1 + .09) = 3.371

MPS = \frac{D_{1} }{(1\ +\ k)^{1} }  + \frac{D_{2} }{(1\ +\ k)^{2} } \ +\ \frac{D_{3} }{(1\ +\ k)^{3} } \ +\ \frac{D_{4} }{(1\ +\ k)^{4} }  +\ \frac{D_{5} }{(1\ +\ k)^{5} } \ + \frac{1}{(1\ +\ k)^{5} }  [\frac{D_{6} }{(k\ -\ g)\ ]}

where MPS = Market price of share

          D= Dividend for different years

          k = Cost of equity

          g= constant growth rate after year 5

putting values in above equation we get,

MPS = 1.864 + 1.65 + 1.478 + 1.463 + 1.352 + 0.4371 × 37.462

MPS = $24.18

The maximum price per share that an investor who requires a return of 18% should pay for Home Place Hotels common stock is <u>$24.18</u>

4 0
3 years ago
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