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MariettaO [177]
3 years ago
7

On November 10th, Easton Company sold the Y Company stock for $31 per share. On December 15th, Z Company paid dividends of $0.12

per share. The following were the year-end market values: Company FMV per Share X Company $43 Y Company 15 Z Company 21 What the total dollar values that Easton Company should record for the Unrealized Gain or (Loss) on Trading Securities for 2018? Enter a Loss as a negative number.
Business
1 answer:
AysviL [449]3 years ago
3 0

Answer:

Find attached complete part  of the question.

The unrealized gains is $3500

Explanation:

Y stock has been disposed and its gains or losses are now realized, and it is not applicable to our computation now.

Unrealized gains or losses is the difference between purchase price of a stock and its current market price

Stock X=($43-$40)*1500=$4500 gains

Stock Z=($21-$22)*1000=-$1000 losses

So unrealized gains overall =$4500-$1000

     unrealized gains =$3500

Note that the price of stock X  has risen to $43 from initial $40 while that of company  Z has fallen to$21 from the initial $22.

I

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Answer: variable costs of $49,500 and $23,000 of fixed costs

Explanation:

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Based on the information given in the question, the variable cost will be:

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On the other hand, the fixed cost has been given as $23000.

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Global Pistons​ (GP) has common stock with a market value of $ 200$200 million and debt with a value of $ 100$100 million. Inves
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Answer:

a. Suppose GP issues $ 100$100 million of new stock to buy back the debt. What is the expected return of the stock after this​ transaction?

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b. Suppose instead GP issues $ 50.00$50.00 million of new debt to repurchase stock. i. If the risk of the debt does not​ change, what is the expected return of the stock after this​ transaction?

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ii. If the risk of the debt​ increases, would the expected return of the stock be higher or lower than when debt is issued to repurchase stock in part ​(i​)?

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Explanation:

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total debt $100 million

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cost of debt 6%

current profits = ($200 million x 15%) + ($100 x 6%) = $30 million + $6 million = $36 million

if equity increases to $300 million, ROI = 36/300 = 12

if instead new debt is issued at 6%:

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cost of debt = 150 million x 6% = $9 million

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