1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
garik1379 [7]
3 years ago
6

In late December you decide, for tax purposes, to sell a losing position that you hold in Twitter, which is listed on the NYSE,

so that you can capture the loss and use it to offset some capital gains, thus reducing your taxes for the current year. However, since you still believe that Twitter is a good long-term investment, you wish to buy back your position in February the following year. To get this done you call your Charles Schwab brokerage account manager and request that he immediately sell your 1,400 shares of Twitter and then in early February buy them back. Charles Schwab charges a commission of $4.95 for online stock trades and for broker-assisted trades, there is an additional $25 service charge, so the total commission is $29.95. a. Suppose that your total transaction costs for selling the 1,400 shares of Twitter in December were ​$59.95. What was the​ bid/ask spread for Twitter at the time your trade was​ executed? b. Given that Twitter is listed on the​ NYSE, do your total transaction costs for December seem reasonable? Explain why or why not. c. When your February statement arrives in the mail, you see that your total transaction costs for buying the 1,400 shares of Twitter were $47.95. What was the bid/ask spread for Twitter at the time your trade was executed? d. What are your total round-trip transaction costs for both selling and buying the shares, and what could you have done differently to reduce the total costs?
Business
1 answer:
Mariana [72]3 years ago
7 0

Answer:

4

Explanation:

You might be interested in
he nation of Pecunia had a current account deficit of ​$ billion and a nonreserve financial account surplus of ​$ million in 201
Andrei [34K]

Answer: -$500,000,000

Explanation:

The Balance of payment is an account that shows the difference between the money coming into a country as a result of transactions with other nations and money going out for the same reason.

Given the figures in the question, the Balance of Payments is;

= Current Account balance + Nonreserve financial account balance

= -1,000,000,000 + 500,000,000

= -$500,000,000

4 0
3 years ago
Trackanddeliver.com is an online retail store that does not require a fixed delivery location and delivers goods to the current
My name is Ann [436]

Answer:

E. functional innovation

Explanation:

Functional innovation -

It is the method by which the any problem is solved by using creative and innovative method , is known as functional innovation.

This method is adapted by organisation for stand apart in the competitive market , by using new , innovative and creative methods.

Hence , from the question,

Trackanddeliver.com deliver the product to the peoples exact location , uses the method of functional innovation.

8 0
2 years ago
New issues of municipal short term notes are available in which form?
igomit [66]

Answer: book entry

Explanation:

A municipal bond, which is commonly referred to as a muni bond, can be defined as a bond that is issued by a particular territory or local government in order to finance public projects like airports, schools, roads, museums, seaports, and infrastructure. It should be noted that new issues of municipal short term notes are available in book entry form.

7 0
3 years ago
XYZ Company earned operating income of $1,500,000 before income taxes. Capital employed equaled $10,000,000, of which $1,000,000
m_a_m_a [10]

Answer:

The answer is creating wealth, with the economic value added is $390,000

Explanation:

The company WACC is: Percentage of mortgage bond in capital employed x Cost of mortgage bond x ( 1 - tax rate) + Percentage of unsecured bond in capital employed x Cost of unsecured bond x ( 1 - tax rate) + Percentage of common stock in capital employed x cost of common stock

In which:  Percentage of mortgage bond in capital employed = 1,000,000/10,000,000 = 10%

Percentage of unsecured bond in capital employed = 3,000,000/10,000,000 = 30%;

Percentage of common stock in capital employed = (10,000,000 - 1,000,000 - 3,000,000) /10,000,000 = 60%

Cost of common stock = Risk free rate + Risk premium = 10% + 5% = 15%;

Tax rate = 40%

Thus, WACC = 10% x 8% x ( 1- 40%) + 30% x 9% x (1-40%) + 60% x 15% = 11.10%.

Thus, Capital cost per year: Capital employed x WACC = 10,000,000 x 11.10% = $1,110,000.

Economic value added = Operating Income - Capital cost = 1,500,000 - 1,110,000 = $390,000.

3 0
3 years ago
John withdraws $100 from his checking account and deposits it in his saving account. What will be the effect of this transaction
Amanda [17]

Answer:

C is Currency in circulation

M1 is Coins, Currency, money is checking account, travelers checks etc. This basically include all units of money which are highly liquid and can be used at an instant.

M2 includes M1 and certain units of money which are less liquid e.g. savings, time deposits, term deposits etc.

Here, John is withdrawing $100 from his checking account and depositing in savings account hence this will decrease the M1 since M1 does not include savings account. There will not be any change in M2 since both checking and savings account are a part of that.

Since this transaction does not include currency in circulation, there will be no impact on C.

Explanation:

6 0
3 years ago
Other questions:
  • __________is a technique to group tasks among workstations so that each workstation has—in the ideal case—the same amount of wor
    9·1 answer
  • What are the main government restrictions on sole proprietorships?
    15·2 answers
  • A builder has located a piece of property that she would like to buy and eventually build on. The land is currently zoned for fo
    13·1 answer
  • Explain why monopoly is uncommon in the real world
    6·1 answer
  • How does advertising affect demand? ( with example )
    12·1 answer
  • A researcher wanted to determine the mean number of hours per week (Sunday through Saturday) the typical person watches televisi
    9·1 answer
  • Suppose that a demand curve exhibits two points. Initially, at price P 0 , the quantity demanded is Q 0 . When price changes to
    13·1 answer
  • Hollister Company amended its defined benefit pension plan at the beginning of 2020 and recognized prior service cost of $1,700,
    13·1 answer
  • The endpoints (horizontal and vertical intercepts) of the budget line: Group of answer choices represent the quantity of each go
    12·1 answer
  • A work group _______ may be defined as a standard that is shared by group members and that regulates member behavior within an o
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!