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satela [25.4K]
3 years ago
6

You own 230 shares of stock in Green Mild Chili Peppers, Inc., that currently sell for $50.70 per share. The company has announc

ed a dividend of $2.59 per share with an ex-dividend date of May 3. Assuming no taxes, what is the value of your portfolio on May 3
Business
2 answers:
Arturiano [62]3 years ago
6 0

Answer:

This equals $12,256.70 (230 x $50.70 + 230 x $2.59)

Explanation:

The value of the portfolio on May 3 is the sum of the market value of the shares plus the sum of the returns in form of dividends to be received.

This value adds the weight of the investment obtained by multiplying the total shares held with its market price to the expected dividend returns on the given date.

svetlana [45]3 years ago
6 0

Answer:

The value of the portfolio ex-dividend is $ 11,065.30  

Explanation:

On May 3, when the stock would have gone ex-dividend , it is expected that the share price would be marked down by the value of dividend paid,hence the portfolio should now be valued at ex-dividend price

The ex-dividend price =share price before dividend-dividend

   share price before dividend is $50.70

ex-dividend is $2.59

ex-dividend price=$50.70-$2.59

                              =$48.11

Value of portfolio=number of shares*ex-dividend price

number of shares is 230

value of portfolio=230*$48.11

                            =$ 11,065.30  

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Federal Reserve Banks directly affect the national economy by:
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Increasing and decreasing money supply
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3 years ago
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When a firm perceives that a foreign currency is _______, the firm may attempt direct foreign investment in that country, as the
Nataly [62]

Answer:

The correct sentence is: When a firm perceives that a foreign currency is <u>undervalued</u>, the firm may attempt direct foreign investment in that country, as the initial outlay should be relatively <u>low</u>.

Explanation:

Whenever a currency loses its value against the dollar or another currency (euro, pounds), it will be an excellent opportunity to invest. In the short term that investment can create benefits for the entity.

7 0
3 years ago
The net income for Sheridan Company for 2020 was $350,000. For 2020, depreciation on plant assets was $69,700, and the company i
enyata [817]

Answer:

350,000 net income

+69,700 depreciation

+13,300 loss on disposal

433,000 adjusted income

no change in working capital

cash generated from operating activities 433,000

Explanation:

We need to remove from the net incoem the non-monetary terms

The depreication is an accounting concept, it doesn't involve cash disbursements, so it is added.

Also the los son disposal doesn't involve using cash so is also removed.

Rule:

to remove a non-monetary expense we should add it.

to remove a non-monetary gain we should decrease it.

5 0
3 years ago
Carla Vista Company reports the following operating results for the month of August: sales $385,000 (units 5,500), variable cost
Neko [114]

Answer and Explanation:

The computation is shown below:

1.  

Selling Price = Sales ÷  Units Sold

Current Selling Price = $385,000 ÷  5500

= $70

Now

Expected Selling Price per unit = $70 + ($70× 10%)

= $77

Now

Expected Sales = 5500 × $77

= $423,500

Now

Net Income = Sales - Variable Cost - Fixed Cost

= $423,500 - $250,000 - $94,000  

2.  

Sales = $385000

Variable cost = $385,000 × 56% = $215,600

Sales                     $385,000

Less: variable cost -$215,600

Contribution Margin $169,400

Les: fixed cost          -$94,000

Net Income               $75,400

As we can see that if there is an increase in Selling Price by 10% so it would produce highest Net Income.

3 0
3 years ago
Chuck, a single taxpayer, earns $75,000 in taxable income and $10,000 in interest from an investment in City of Heflin bonds. (U
scZoUnD [109]

Answer:

a. 24%

b. 12%

Explanation:

Marginal tax rate is an incremental tax rate that is paid out of the taxable income of a tax payer. It represents the rate at which the last unit of dollar of the taxable income is taxed. The marginal rate for each income bracket is supplied by the Internal Revenue Service (IRS).

                               Chuck Marginal Tax Rate

a) The marginal tax rate for Chuck if he earns additional $40,000 taxable income will be:

= $75,000 + $40,000

= $115,000

Marginal tax rate for $115,000 is 24% according IRS tax rate schedule.

b) If instead, it is an additional deduction of $40,0000, the marginal tax rate will be:

= $75,000 - $40,000

= $35,000

The marginal tax rate for taxable income of $35,000 is 12% according US tax rate schedule.

Note: the interest is categorized as interest from municipal bond, so it is tax free.

It is also assumed that Chuck is single. Hence, tax rate under single filer applies to him.

3 0
3 years ago
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