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nekit [7.7K]
3 years ago
7

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:
Business
1 answer:
ANTONII [103]3 years ago
5 0

Answer:

$ 52

Explanation:

Given data:

Price of the stock = $ 50

Commission per share = $ 2

Dividends received  = $ 2

Now,

the dividends received is not the part of the stock's cost basis, but it is included in the taxable income for the year.

Therefore,

The customer's cost basis in the stock

= Price  of the stock + commission per share

or

= $ 50 + $ 2

or

customer's cost basis in the stock = $ 52

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Answer:

what

Explanation:

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2 years ago
The management of Penfold Corporation is considering the purchase of a machine that would cost $270,000, would last for 5 years,
Lorico [155]

Answer:

The correct answer is B.

Explanation:

Giving the following information:

Initial investment= $270,000

Cash flow= $60,000

Number of years= 5

Discount rate= 12%

<u>To calculate the net present value (NPV), we need to use the following formula:</u>

NPV= -Io + ∑[Cf/(1+i)^n]

∑[Cf/(1+i)^n]:

Cf1= 60,000/1.12= 53,571.43

Cf2= 60,000/1.12^2= 47,831.63

.....

Cf5= 60,000/1.12^5= 34,045.61

∑[Cf/(1+i)^n]= 216,286.57

<u>Now, the NPV:</u>

NPV= -270,000 + 216,286.57

NPV= -53,713.43

5 0
3 years ago
A perfectly competitive market has a. only one seller. b. at least a few sellers. c. many buyers and sellers. d. firms that set
Natali [406]

Answer:

c. many buyers and sellers.

Explanation:

A perfect market for competition is a market that has a high level of competition.

It has the following features -  

1. With regard to the market, knowledge is great in this rivalry between producer and consumer.

2. Free entry, and exit  

3. Deals with same or homogeneous products  

4. The sellers and buyers are more in this market  

5 0
3 years ago
If Shawn can produce donuts at a lower opportunity cost than Sue, then ____
Archy [21]

Answer:

(A) Shawn has a comparative advantage in the production of donuts.

Explanation:

Shawn renounce to less goods than Sue when producing donuts.

This meas, Shawn has a comparative advantage in the production of donuts as their cost from the economic point of view are lower.

This do not imply that Sue cannot outproduce Shawn, it means it cost her more than Shawn

For example, if Sue produce 10 Donuts, but to produce donuts resing to produce 20 of other goods, each donut has an opportunity cost of 2

While Shawn can produce 8 donuts and resing to produce 8 of other goods:

each donut has an opportunity cost of 1

Therefore, is better for the overall economy to Shawn produce donuts and trade with Sue for the other good.

4 0
3 years ago
Misaki, a sales manager at a startup cosmetics company, wants to determine her company’s market potential. She first develops a
Viefleur [7K]

The type of approach Misaki is using to determine her company's market potential is the breakdown approach, used to determine the size of sales forces needed in a company.

<h3 /><h3>Breakdown approach</h3>

Corresponds to a method used to identify an organization's sales force, through projections for future sales and past sales history.

Therefore, in the breakdown approach, the total sales value identified by the sales projection is divided by the sales generated by each sales professional, assuming that each one reaches the same level of productivity.

The correct answer is:

  • Breakdown approach

Find out more information about breakdown approach here:

brainly.com/question/5775960

6 0
2 years ago
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