Answer:
Option D) 1,200 shares held at a cost basis of $37.50 per share
Explanation:
Data provided in the question:
Number of shares of ABC stocks purchased by the customer = 1,000
Price per share of ABC stock = $44
Commission paid = $1.00 per share
Stock dividend declared = 20%
Now,
The Payment of a stock dividend will increase the number of shares held by the investor
also,
each share is theoretically worth less after the stock dividend is paid.
Therefore,
The number of shares customer will have = Shares purchased × (1 + Dividend declared)
= 1000 × ( 1 + 0.20)
= 1200 shares
Also,
Cost basis for the share = Selling price + Commission
= $44 + $1
= $45
Thus,
The adjusted cost basis = $45 ÷ 1.20
= $37.50 per share
Hence,
Option D) 1,200 shares held at a cost basis of $37.50 per share
Answer: My answer is in the photo below. Hope it helps.
Answer:
Option "E" is the correct answer to the following question.
Explanation:
Corporate bylaws or Laws are special rules or regulations made by a company which is a set of statutory laws used by the Board of Directors. Corporate rules or regulations are important legal documents that ensure how a manager will run a corporate website and all the rules and regulations related to it are written.
Corporate bylaws or Laws are used to run corporations easily and smoothly.
Hello,
Here is your answer:
The proper answers to your question is options A,B, and D (information from experts in the field, information from recognized and reputable organizations, and <span>information that can be verified by other sources!
Your answers are A, B, and C!
If you need anymore help feel free to ask me!
Hope this helps!</span>
Answer:
The future value of these cash flows at the end of year 4 is $71,885.80
Explanation:
In order to calculate the future value of these cash flows at the end of year 4 we would have to use the following formula:
n
∑
FV = i=1 [CFi * (1 + r)(n - i)]
FV = [$11,800 * (1 + 0.10)∧(4-1)] + [$14,000 * (1 + 0.10)∧(4-2)] + [$18,200 * (1 + 0.10)(4-3)] + [$19,000 * (1 + 0.10)(4-4)]
FV = $15,705.80 + $16,940 + $20,020 + $19,000
FV=$71,665.80
The future value of these cash flows at the end of year 4 is $71,885.80
