Answer:
not sufficiently profitable to cover trading costs.
Explanation:
Hasan Nejat Seyhun, a professor of Finance, in 1986, in his research study titled "Insiders' profits, costs of trading, and market efficiency" investigates the unusual findings of the previous insider trading studies, that suggests that, any investor can earn abnormal profits by reading the Official Summary.
Hence, he concluded that, that the practice of monitoring insider trade disclosures, and trading on that information, would be not sufficiently profitable to cover trading costs.
Answer:
92.15%
Explanation:
Calculation for Green's cash tax rate
First step is to calculate the taxes payable
Taxes payable=$1,024,000+$51,200-$106,000-$25,600
Taxes payable=$943,600
Now let calculate the cash tax rate
Using this formula
Cash tax rate=Taxes payable/Pretax book income
Let plug in the formula
Cash tax rate=$943,600/$1,024,000
Cash tax rate=0.9215*100
Cash tax rate=92.15%
Therefore the Cash tax rate is 92.15%
Answer:
Mark will have $19,878.70 at the end of six years
Explanation:
Use the following formula to calculate the present value of cash flows
PV = ![A [\frac{1 - (\frac{1+g}{1+r})^n }{r - g} ]](https://tex.z-dn.net/?f=A%20%5B%5Cfrac%7B1%20-%20%28%5Cfrac%7B1%2Bg%7D%7B1%2Br%7D%29%5En%20%7D%7Br%20-%20g%7D%20%5D)
Where
A = Investment = $2,000
g = growth rate = 4%
r = 15%
n = 6
Placing values in the formula
PV = ![2,000 [\frac{1 - (\frac{1+0.06}{1+0.15})^6 }{0.15 - 0.06} ]](https://tex.z-dn.net/?f=2%2C000%20%5B%5Cfrac%7B1%20-%20%28%5Cfrac%7B1%2B0.06%7D%7B1%2B0.15%7D%29%5E6%20%7D%7B0.15%20-%200.06%7D%20%5D)
PV = $8,594.11
Now calculate the future value in order to determine the amount Mark will have at the ned of six years
Future value = 
Where
PV = $8,594.11
r = 15%
n = 6
Placing values in the formula
Future value = 
Future value = $19,878.70
Answer:
The bond was issued at a premium of $ 155.89
Explanation:
In determining whether the bond was issued at premium or discount,it is important to ascertain the price at which the bond was issued first and foremost.
In arriving the price of he bond, all of the future cash flows of the bond are discounted to present values using the discounting factor 1/(1+r)^N
Find detailed calculation in the attached.
Answer:
$2,250,000
Explanation:
The computation of retained earnings is shown below:-
Retained earnings 31/1/17 = Retained earning 1/1/17 + Net income of current year - Understatement of depreciation expenses - Dividends declared
= $2,000,000 + 1,000,000 - $430,000 - $320,000
= $2,250,000
Therefore for computing the retained earnings 31/1/17 we simply applied the above formula.
As we assume that the question is asked for the 31/1/17 instead of 1/1/17 as it is already mentioned in the question
