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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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Answer:

$33,600

Explanation:

The computation is shown below:

But first we have to determined the following things

Depreciation rate

= 1 ÷ useful life

= 1 ÷ 10

= 0.1

It is double-declining so the rate is also double i.e. 0.20

Now in the first year, the depreciation expense is

= $40,000 × 0.20

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Now in the second year, the depreciation is

= ($40,000 - $8,000) × 0.20

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So, the accumulated depreciation at the end of 2019 is

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6 0
3 years ago
A trading arrangement that eliminates most or all barriers to trade among participating nations and utilizes common barriers to
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Answer:

preferential trade agreement

Explanation:

This agreement is known as a preferential trade agreement. It is called this because it tends to make it easier for specific goods to be traded but only to the countries that are part of the group and/or agreement. This agreement also makes it harder for countries that are not part of the agreement to be able to trade with the countries that are in order to maintain the countries within the agreement trading with each other.

4 0
3 years ago
Colt Corporation purchased Massey Inc. and agreed to give stockholders of Massey Inc. 50,000 additional shares in 2020 if Massey
Tpy6a [65]

Answer:

4. $3.00...$2.73

Explanation:

Basic EPS = Net income/average number of shares outstanding

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                 = $3 per share

Diluted EPS = 1500000/(500000 + 50000)

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Therefore, Colt should report earnings per share for 2018:

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3 years ago
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GREYUIT [131]

A good reason why it is important not just to read but to also reference things appropriately would be to avoid the issues of plagiarism.

<h3>What does it mean to reference a work?</h3>

This is the term that is used to refer to the fact that a work has been accredited to the rightful people that own. When someone is writing, they may list several ideas from an outside sources, it is advised to reference the people that own the work that has been used in this writing.

Hence we can say that a good reason why it is important not just to read but to also reference things appropriately would be to avoid the issues of plagiarism.

Read more on scholarly articles here: brainly.com/question/18754197

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5 0
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