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Scorpion4ik [409]
3 years ago
6

A customer has purchased 1,000 shares of ABC stock at $44 per share, paying a commission of $1.00 per share for the transaction.

ABC stock declares a 20% stock dividend. When the dividend is paid, the tax status of the investment is:A. 1,000 shares held at a cost basis of $44 per share
B. 1,000 shares held at a cost basis of $45 per share
C. 1,200 shares held at a cost basis of $36.66 per share
D. 1,200 shares held at a cost basis of $37.50 per share
Business
1 answer:
Sonbull [250]3 years ago
3 0

Answer:

Option D) 1,200 shares held at a cost basis of $37.50 per share

Explanation:

Data provided in the question:

Number of shares of ABC stocks purchased by the customer = 1,000

Price per share of ABC stock = $44

Commission paid = $1.00 per share

Stock dividend declared = 20%

Now,

The Payment of a stock dividend will increase the number of shares held by the investor

also,

each share is theoretically worth less after the stock dividend is paid.

Therefore,

The number of shares customer will have = Shares purchased × (1 + Dividend declared)

= 1000 × ( 1 + 0.20)

= 1200 shares

Also,

Cost basis for the share = Selling price + Commission

= $44 + $1

= $45

Thus,

The adjusted cost basis = $45 ÷ 1.20

= $37.50 per share

Hence,

Option D) 1,200 shares held at a cost basis of $37.50 per share

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Walmart's decision to build fulfillment centers illustrates which force in​ Porter's Five Forces​ Model?
serg [7]

Answer:

the correct answer is D. threat of new entrants

good luck

5 0
3 years ago
Currently, a company is financed with 40% equity and 60% debt. The debt consists of 15-year $1,000 face-value bonds that pay sem
asambeis [7]

Answer:

the cost of the equity of the company is 18%

Explanation:

The computation of the cost of equity is as follows

Cost of equity = Risk free rate of return + beta × (market rate of return - risk free rate of return)

= 4% + 1.4 × (14% - 4)

= 4% + 1.4 × 10%

= 4% + 14%

= 18%

Hence, the cost of the equity of the company is 18%

We simply applied the above formula so that the accurate percentage could come

Therefore the second option is correct

8 0
2 years ago
The total factory overhead for Bardot Marine Company is budgeted for the year at $600,000, divided into four activities:
Gnesinka [82]

Answer:

Bardot Marine Company

a. Activity rates for each activity:

Fabrication = $40.80/dlh

Assembly = $26.25/dlh

Setup = $222.86/dlh

Inspection = $51.92/dlh

b. The activity based factory overhead per unit for each product:

                                              Speed        Bass

                                              Boats        Boats

Factory Overhead per unit  $927.25  $1472.70

Explanation:

a) Data and Calculations:

Activities         Budgeted     Speed        Bass

                      Overheads    Boats        Boats          Total           Activity rates

Fabrication    $204,000     2,000 dlh   3,000 dlh  5,000 dlh   $40.80/dlh

Assembly       $105,000      1,000 dlh   3,000 dlh  4,000 dlh   $26.25/dlh

Setup             $156,000         300 dlh      400 dlh     700 dlh   $222.86/dlh

Inspection     $135,000        1,100 dlh    1,500 dlh  2,600 dlh  $51.92/dlh

Total costs   $600,000

Units budgeted                      250            250           500 units

                                              Speed        Bass

                                              Boats        Boats

Fabrication = $40.80/dlh   $81,600      $122,400

Assembly = $26.25/dlh      26,250          78,750

Setup = $222.86/dlh          66,850           89,144

Inspection = $51.92/dlh        57,112          77,880

Total assigned costs        $231,812      $368,174

Units budgeted                     250              250

Overhead per unit            $927.25      $1472.70

5 0
3 years ago
A large food chain owns a number of pharmacies that operate in a variety of settings. Some are situated in small towns and are o
Katyanochek1 [597]

Answer:

A.)

ŷ = 47.07049X + 4435.08375 ;

10084

B.)

y = - 9964.5212 + 4251.34435In(x) ;

10389

C.)

Logarithmic model

Explanation:

Given :

Hours of Operation (X) :

40

44

48

48

60

70

72

90

100

168

Average Revenue Y) :

5958

6662

6004

6011

7250

8632

6964

11097

9107

11498

The best fit Given by a linear model for the data is:

ŷ = 47.07049X + 4435.08375

Average Revenue for 120 hours, X

ŷ = 47.07049(120) + 4435.08375

ŷ = 10083.54255 = 10084

A non-linear model which could be used is a logarithmic model:

General form of a Logarithmic model : y=A+Bln(x)

Equation of best fit :

y = - 9964.5212 + 4251.34435In(x)

Average Revenue for 120 hours, X

y = - 9964.5212 + 4251.34435In(120)

y = - 9964.5212 + 20353.275

y = 10388.754 = 10389

Using the correlation Coefficient value :

Linear mode = 0.8731

Logarithmic model = 0.9084

The logarithmic model is preferred as it has a greater correlation Coefficient value Than the linear model.

7 0
2 years ago
The science of designing for efficient and comfortable interaction between a product and the human body is called __________.
tensa zangetsu [6.8K]

Answer:

The question is lacking the multiple-choice options, below is the complete question and options:

The science of designing for efficient and comfortable interaction between a product and the human body is called __________.

A. the Kazuo principle

B. physical economics

C. the Kotlean method

D. ergonomics

Answer:

The correct answer is:

ergonomics (D)

Explanation:

Ergonomics is the application of the principles of psychology and physiology to the design and engineering of products, processes, or systems, with the aim of reducing human error, increasing productivity and enhancing safety and comfort, by paying particular attention to the human being the thing being interacted with. The ergonomic process involves:

Assessing risk, planning improvements, measuring progress, and scaling solutions.

Ergonomics involves so many disciplines including anthropology, psychology, physiology, sociology, engineering, biomechanics etc.

<em>To gain more in-depth knowledge of ergonomics, I suggest you look it up.</em>

8 0
3 years ago
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