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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:

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Which one of the following types of losses is excluded from the determination of net income in income statements? Material losse
alexgriva [62]

Answer: The correct answer is "Material losses resulting from correction of errors related to prior periods.".

Explanation: It is generally established that the type of loss that is excluded from the determination of net income in the income statement are the material losses resulting from transactions in the company's investments account.

7 0
3 years ago
She negotiated a price of $21,900 and will trade in her old car for $2,350. She will put another $850 with it and borrow the rem
lisabon 2012 [21]

Answer:

The monthly payment will be $434

Explanation:

Price of New car = $21,900

Price of old car exchanged = $2,350

Cash Payment = $850

Amount of Loan = $21,900 - $2,350 - $850

Amount of Loan = A = $18,700

Rate of interest = r = 6% = 0.06 = 0.005 per month

Number of total periods = 12 x 4 = 48

P = $18500 / { [ ( 1 + 0.005 )^48 ] - 1 } / [ 0.005 ( 1 + 0.005)^48 ]

P = $18500 / [ 0.2704891611 / 0.006352446 ]

P = $18500 / 42.58

P = $434.47

6 0
3 years ago
A cartel is difficult to maintain for which of the following reasons? A. Consumers substitute away from the good when the price
Ulleksa [173]

Answer:

The correct answer is option B.

Explanation:

A cartel can be defined as a group of independent producers who come together to form a group in order to improve profits. In an oligopoly market, there are few firms in the market. The firms are such that the economic decisions of one firm or producer affects their rivals.  

In such a situation, the firms come together to form a cartel to protect their interests. In a cartel, production limits are set for all producers so that the price is high. But cartels are generally short-lived.  

This is because the individual producers have incentives to cheat the cartel by producing more than a set limit so that they can increase their profit and market share.

4 0
3 years ago
Which of the following statements about the role of institutions in economic growth is TRUE and which of the following statement
ki77a [65]

Answer:

Explanation:

(a) Expropriation has Truly been a major concern for the Government through out the globe, as the when an entity or body which is supposed to work for the good of the poor people by making use of the Government property starts dealing in illegal ways to grab it as private or work on other properties which are private in nature,

b) The European invasion of the many countries across the globe had initially been to gain ,more and more wealth and power through business.

However, it is true that the quality of the institutions colonized by the Europeans is related to whether the climate or the diseases in the colonized regime allowed the European settlers to live in those areas.

(c) It is true that the low quality institutions make it difficult to protect property rights and enforce contracts. The rights of the people are all dependent on how the State allows the people to enjoy them.  

(d) It is true that the low-quality institutions are central to the theory of poverty traps that states that countries need a big push to felicitate convergence in living standards to the developed world.

 

8 0
3 years ago
The rate of return on the common stock of Lancaster Woolens is expected to be 21 percent in a boom economy, 11 percent in a norm
natta225 [31]

Answer:

0.002244

Explanation:

We will first calculate the expected return. It is:  E(r)

E(r) = (0.10 0.21) + (0.70 0.11) + (0.20 0.03)

                  = 0.104

Var = 0.10 (0.21 - 0.104)2 + 0.70 (0.11 - 0.104)2 + 0.20 (0.03 - 0.104)2

= 0.002244

3 0
3 years ago
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