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Phantasy [73]
3 years ago
9

In January, 20XX a customer buys 100 shares of ABC stock at $50 per share and pays a $2 commission per share. The customer recei

ves $2 in cash dividends during the year. The customer's cost basis in the stock is:________. A. $48 per share B. $50 per share C. $52 per share D. $54 per share
Business
1 answer:
leva [86]3 years ago
5 0

Answer:

C) $52 per share

Explanation:

The cost basis of the stock includes the purchasing price + all commissions paid to the broker = $50 + $2 = $52

The $2 per stock dividend that the stockholder received must be reported as ordinary income and is taxed as such. The cost basis is used to calculate capital gains or losses.

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A bond that pays interest semiannually has a coupon rate of 5.08 percent and a current yield of 5.37 percent. The par value is $
Zolol [24]

Answer:

$997

Explanation:

The price of the Bond is its Present Value. thus we need to discount the future cash flows (payments and capital repayments) to find the price as follows.

<em>Note : I am using a financial calculator here</em>

FV = $1,000

P/Yr = 2

N = 1 x 2 = 2

PMT = ($1,000 x 5.08 %) ÷ 2 = $25.40

YTM =  5.37 %

PV = ?

Conclusion

Assuming the Bond Matures in 1 year, the bond's price is $997

4 0
3 years ago
You observe the price of a good rises and the quantity sold decreases. This is the result of
kondor19780726 [428]

Answer:

This is the result of law of demand and elasticity of demand

Explanation:

The law of demand states that, other things remaining equal, the higher the price of a commodity, the lower the quantity demand of that commodity. Also, the observed goods in the question is a normal good because all normal goods obey the law of demand.

In addition, the price elasticity of demand is ELASTIC. This means the good is sensitive to price. A 1% increase in price will lead to a significant decrease in quantity demanded.

Also the income elasticity of demand is negative, meaning an increase income means the quantity demanded will decrease. This usually happens for inferior goods.

All these three points can cause it

6 0
3 years ago
As an accountant for hartley enterprises, you are responsible for preparing the statement of cash flows. you have transactions f
Ganezh [65]

"Cash flow from financial activities" is the heading." This section of the cash flow statement displays all of your company's financing activity, including equity, loan, and dividend transactions.

<h3>What is cash flow statement?</h3>

A cash flow statement is a financial statement that outlines all cash inflows a company receives from ongoing operations and outside investment sources.

It also includes all cash outflows for business and investment operations over a set period of time.

Thus, "Cash flow from financial activities" is the heading.

For more details about cash flow statement, click here

brainly.com/question/21306581

#SPJ1

5 0
3 years ago
Carol wants to invest money in a 6% CD account that compounds semiannually. Carol would like the account to have a balance of $1
Luba_88 [7]

Answer:

the formula for compound interest future value is S=P*((1+i)exp n)-1/i)expt

Explanation:

The answer is $6,186

130000=X*((1+0.06)exp 14)-1/0.06)

X= 6,186

3 0
4 years ago
The capital asset pricing model:_______A) Depicts the total risk of a security. B) Measures risk as the coefficient of variation
Inga [223]

Answer: Option c

Explanation: In simple words, the capital asset pricing model (CAPM) is a model used to determine an asset's hypothetically suitable necessary return rate to decide to attach assets to a diversified portfolio.

The equation takes into consideration the exposure of the asset to non-verifiable uncertainty , also expressed by the quantity beta (β) in the financial industry, as well as the expected market return and the expected return of a risk-free hypothetical asset.

Hence from the above we can conclude that the correct option is .

4 0
3 years ago
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