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denis-greek [22]
3 years ago
8

Wilfred Nadeau owns 300 shares of Consolidated Glue. The​ company's board of directors recently declared a cash dividend of 45 c

ents a share payable April 18 ​(a Wednesday) to shareholders of record on March 22 ​(a Thursday). a. How much in​ dividends, if​ any, will Wilfred receive if he sells his stock on March 20​? b. Assume Wilfred decides to hold on to the stock rather than sell it. If he belongs to the​ company's dividend reinvestment​ plan, how many new shares of stock will he receive if the stock is currently trading at ​$39.80 and the plan offers a 3.4 % discount on the share price of the​ stock? (Assume that all of​ Wilfred's dividends are diverted to the​ plan.) Will Wilfred have to pay any taxes on these​ dividends, given that he is taking them in stock rather than​ cash?
Business
1 answer:
dedylja [7]3 years ago
8 0

Answer:

<u>a. Zero dividend.</u>

<u>b. 3.5 new shares</u>;

<em>texes will be paid.</em>

<u>Explanation:</u>

a. March 20 is a date earlier than when the dividends are too be paid on April 18, and as such Wilfred Nadeau<em> will not</em> receive any dividend if he sells his stocks since he no longer has ownership of them.

b. 45 cents dividends per 300 stocks of Wilfred is $135 (reinvestment dividend plan).

With a discount of 3.4% at $39.8 (3.4%*39.8) current price per stock makes the total cost per stock after discount= $38.4.

Dividing the reinvestment dividend plan over the discounted price (135/38.4) = 3.5 new shares, According to the requirements of law the investor must still pay tax annually on his or her dividend income, whether it is received as cash or reinvested.

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TJ's and Corner Grocery are all-equity firms. TJ's has 2,500 shares outstanding at a market price of $16.70 a share. Corner Groc
alexandr402 [8]

Answer:

$1.30

Explanation:

The valuation of TJ's = price per share * number of shares in issue

= $16.70 * 2,500 shares = $41,750.

Corner Grocery offer for TJ's of $45,000, and obviously a premium over the market value of TJ's at $41,750.

The price per share of Corner Grocery's offer = \frac{45,000}{2,500} = $18 per share.

That is, offer value divided by the number of shares to be acquired.

Therefore, merger premium per share = offer price, less market price

= $18 - $16.70.

= $1.30

8 0
3 years ago
suppose that aggregate demand is falling for several months in a row. describe how the economy will adjust in the long run.
Salsk061 [2.6K]

If aggregate demand in the long run is falling for several months in a row, it will make aggregate market results in an increase in the price level but no change in real production. The level of real production resulting from the aggregate demand shock is full-employment real production.

Aggregate demand can be described as a measurement of the total amount of demand for all finished services and goods produced in an economy. Aggregate demand is expressed as the total amount of money exchanged for those services and goods at a specific point in time and price level.

The model of aggregate demand and long-run aggregate supply predicts that the economy will eventually move toward its potential output. To see how nominal wage and price stickiness can cause real GDP to be either above or below potential in the short run, consider the response of the economy to a change in aggregate demand.

Learn more about aggregate demand in the link brainly.com/question/14375684

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4 0
1 year ago
One way that the world bank might experience an adverse selection in its own lending is if __________.
Sloan [31]

Adverse selection describes situations when high-risk persons are more likely to receive insurance or when one bargaining side has important knowledge that the other does not. Our goal is to influence decision-makers, both inside and outside of government, to consider the future and adopt long-term plans.

When vendors and/or purchasers have different knowledge about a certain component of a product's quality, this is referred to as adverse selection. Thus, those who work in hazardous environments or lead high-risk lives are more likely to buy life or disability insurance, knowing that they will likely be able to use it.

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brainly.com/question/3520105

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6 0
1 year ago
Max and nora have modified agi of $75,000, and adopted a little boy from san antonio, texas, in the current year and incurred a
miskamm [114]

Answer:$9,000

Explanation:

The tax credit offered to adoptive parents to encourage adoption is reffered to as ADOPTION TAX CREDIT. The adoption tax credit is a nonrefundable tax credit. This means that people owing taxes are also fit or qualified to apply for the adoption tax credit.

In the United States of America, adoption tax credit qualified expenses include court costs, traveling expenses, lawyer's or Attorney's fee and other expenses for legal adoption of an eligible child.

It can be calculated by subtracting

the max's employer provided for the couple with adoption benefits of $4,000 from the incurred expenses of a total of $13,000 in qualified adoption expenses(from the question).

That is; $13,000-$4,000.

= $9,000.

Hence, the maximum amount of adoption credit they can take this year is $9,000.

4 0
3 years ago
After reviewing the existing data on seasonal spending by his company's customers, Marvin decided he needed new information coll
Studentka2010 [4]

Answer: Primary data

Explanation:

Primary data which is also referred to as raw data, is data such as readings, numbers, figures, etc. that are collected from a particular source. The primary data is the data which is collected by an individual or researcher from the first hand sources, by using methodology such as surveys, experiments or interviews. These are collected, keeping in mind the research project, directly from the primary sources.

3 0
2 years ago
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