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Paladinen [302]
3 years ago
15

Cosmetic Profits. Sally is the executive vice president of Big Name Cosmetics Company. Through important and material, nonpublic

information, she learns that the company is soon going to purchase a smaller chain of stores. It is expected that stock in Big Name Cosmetics will rise dramatically at that point. Sally immediately buys a number of shares of her company's stock. She also tells her friend Alice about the expected purchase of stores. Alice wanted to purchase stock in the company but lacked the funds with which to do so. Although she did not have the funds in Bank A, Alice decided to draw a check on Bank A and deposit the check in Bank B and then proceed to write a check on Bank B to cover the purchase of the stock. She hoped that she would have sufficient funds to deposit before the check was presented for payment. Of which of the following, if any, is Sally guilty of by providing information to Alice regarding the purchase?
Business
1 answer:
maksim [4K]3 years ago
5 0

Answer:

Sally is guilty of insider trading violation which she has done by tipping the information to Alice.

Explanation:

Sally has committed an unlawful practice by giving away inside information to a friend named Alice.  The inside (confidential) information is used to get tipped off, or it can be used to tip off someone else which leads to further unlawful practices which in this case is ‘Check Kitting’, and it is a type of theft and larceny which is used to get the advantage of non-existing funds.

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Which of the following was the most traded stock of the day?
fgiga [73]

your going to have to put some more to that question


7 0
3 years ago
Read 2 more answers
Riverrun Co. provides medical care and insurance benefits to its retirees. In the current year, Riverrun agrees to pay $13,500 f
gtnhenbr [62]

Answer:

Dr. Employee Benefits expense                    $22,700

Cr. Medical Insurance payable                      $13,500

Cr. Employee retirement program payable  $9,200

Explanation:

The cost of fringe benefit provided to the employee of the company and any tax component attached to it is known as the employee benefit expense.

Total employee benefit expense is the sum of medical insurance and employee retirement program. As medical insurance and retirement program is payable until now so, it is recorded as a liability.

Employee benefit expense = $13,500 + $9,200 = $22,700

3 0
3 years ago
A perpetuity pays $170 per year and interest rates are 8.2 percent. How much would its value change if interest rates increased
weqwewe [10]

Answer:

$320.59 decrease

Explanation:

The computation of the change in the value is shown below:

As we know that

The Value of perpetuity is

= Annual inflows ÷ interest rate

Current value is

= $170 ÷ 0.082

= $2,073.17

And,

New value is

= $170  ÷ 0.097

= $1,752.58

Now change in value is

= $2,073.17 - $1,752.58

= $320.59 decrease

We simply applied the above formula

8 0
3 years ago
A stock sells for $12.36 a share and has a required return of 9 percent. Dividends are paid annually and increase at a constant
jenyasd209 [6]

Answer:

$0.72

Explanation:

The computation of the amount of the last dividend paid is shown below:

Market price of a stock = Last dividend × (1 + growth rate) ÷ Required  rate of return - growth rate

$12.36 = Last dividend × ( 1 + 0.03) ÷ 0.09 - 0.03

$12.36 = Last dividend × (1.03) ÷ 0.06

$12.36 × 0.06 = 1.03 × last dividend

$0.7416 = 1.03 × last dividend

So,

last dividend is

= $0.7416 ÷ 1.03

= $0.72

7 0
3 years ago
Why scarcity and choice are basic economic problems faced by every Society??
Ksju [112]
The basic economic problem is that of scarcity and choice. This is because people have infinite wants in the face of limited resources, therefore decisions have to be made. The basic economic problem ensures that every society has to decide what to produce, how best to produce it, and for whom to produce it.
3 0
3 years ago
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