Answer:
A. $75,000 dividend
Explanation:
This is not a capital gain as it do not come from the change in the value of the previously owned shares this are new shares.
The shares which N and M provide in favor to Ben are an stock dividend thus, the tax treatment should be of dividends as well.
Answer: Introduction, supporting details, and conclusion.
The money left over the cost of making a product or providing a service
Answer:
Par value of common stock is $2.5
Explanation:
The par value of common stock can determined by dividing the common stock total amount in each of the two years by the shares issued and outstanding in each year as demonstrated below:
2019:
Par value of common stock =Common stock($)/shares issued
common stock($) is $555 million
shares issued and outstanding is 222 million shares
par value of common stock=$555 million/222 million=$2.5
2020:
Par value of common stock =Common stock($)/shares issued
common stock($) is $560 million
shares issued and outstanding is 224 million shares
par value of common stock=$560 million/224 million=$2.5
Ultimately the par value of common stock as shown be computations for both years is $2.5
Answer:
$33.50
Explanation:
we can use the perpetual growth model to determine the price of the stock
the firm's stock price = ($1.25 x 1.15)/1.11 + ($1.25 x 1.15²)/1.11² + ($1.25 x 1.15³)/1.11³ + [($1.25 x 1.15³ x 1.06)/(11% - 6%)]/1.11³
the stock price in 3 years = ($1.25 x 1.15³ x 1.06)/(11% - 6%) = $40.30
the firm's stock price = ($1.25 x 1.15)/1.11 + ($1.25 x 1.15²)/1.11² + ($1.25 x 1.15³)/1.11³ + $40.30/1.11³ = $1.30 + $1.34 + $1.39 + $29.47 = $33.50
