Answer: c. $19
Explanation:
Under the FINRA 5% Policy, a fair and reasonable mark-up or commission is based upon the current market price of the stock not how much the dealer bought it for or rather their cost. As such, when the customer buys, which was the case in this scenario, the mark-up is charged on the <em>inside ask price</em> which in this case is $19.
Were the customer to be selling, any mark-downs will be charged on the <em>inside bid price </em>which in this case is $18.
Answer: c. $3,960,000
Explanation:
Using the units-of-production method of depreciation, depreciation is done per unit used.
With a residual value of zero, the formula is;
= Cost x Millage used / Useful life mileage
= 55,000,000 x 36,000,000/500,000,000
= $3,960,000
Answer:
You should pay $3.86 to purchase this stock.
Explanation:
Hi, first let me mention that we can find the price of a stock by bringing to present value its future cash flows, in this case, its dividends, therefore we need to bring to present value $0.25 of year 3 and $0.25 of year 4. We also have to bring that constant dividend of $0.75 that the company plans to pay indefinitely, that we can do by using the following formula, discounted at 13%.
Notice that the formula above says PV(4), that is because this formula only brings that perpetual annuity to one period of time before the first payment takes place, therefore this value has to be brought to present value too.
With all the considerations above, this is how everything should look like.
Therefore, the price of this stock is $3.86
Best of luck.
Suppose we have two animals, X and Y and that X helps Y thanks to a gene. In this equation, we have that B is the benefit that Y receives, r the degree of relatedness and C is the cost of help. If the equation above holds, we have that the benefit (accounted for relatedness) overweighs the cost and the gene will spread. More specifically, the benefit to an individual's fitness (accounting for the probability that he has the gene) is greater than the cost to X's fitness and thus the probability that the gene propagates to the next generation is increased.
