Answer:
d. not selected option d copyright
True, profits of a large corporation are taxed twice, once a corporate income and again as personal income of stockholders. This is because the corporation is taxed when they earn the profit but then the stockholders are taxed as it is paid out as income/earnings.
Answer:
$1,000,000
Explanation:
Gallagher Corporation
Stock option × Option estimated fair value /Numbers of years
Stock option $400,000
Option estimated fair value $10
Numbers of years 4
Hence:
($400,000 × $10) / 4 years
=$4,000,000/4years
= $1,000,000
Therefore pretax compensation expense for year 1 will be $1,000,000
Answer:
Bond Price= 106.77
Explanation:
Giving the following information:
Face value= 100
Coupon= 100*0.05= 5
Yield To Maturity= 0.035
Years to maturity= 5 years
<u>To calculate the price of the bond, we need to use the following formula:</u>
Bond Price= cupon*{[1 - (1+i)^-n] / i} + [face value/(1+i)^n]
Bond Price= 5*{[1 - (1.035^-5)] / 0.035} + [100/(1.035^5)]
Bond Price= 22.57 + 84.2
Bond Price= 106.77
Answer:
all of the above characterize dealer markets.
- no time-consuming search for a fair deal.
- a guarantee of order fulfillment because the dealer holds an inventory of securities.
- improved market efficiency because dealers provide continuous bid and ask prices for securities.
Explanation:
A dealer market is a market where financial dealers post their trading prices (the buying and selling price of stocks, bonds, foreign currency, etc.). The largest dealer market in the US is Nasdaq where stocks are traded electronically. The main difference between a dealer market and a regular auction market like the NYSE is that no bidding takes place since operations are done in a split second.
