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Anastasy [175]
3 years ago
6

Courtney invested in RAD, Inc. stock nine months ago. She is considering tax planning strategies at the end of the year and is p

ondering whether or not to sell her investment in the stock. A friend hasadvised Courtney that she should hold the stock for at least three more months in order to have a long-term holding period. What considerations describes a valid reason for selling the stock now?
Business
1 answer:
Novosadov [1.4K]3 years ago
7 0

The valid reason for selling the stock now is that the -Courtney is concerned that the value of the stock will decline in the near future.

Explanation:

Courtney has  invested in RAD, Inc. stock nine months back .Now she is considering tax planning strategies at the end of the year and is pondering whether or not to sell her investment in the stock.

A friend has advised Courtney that she should hold the stock for at least three more months in order to have a long-term holding period. but the consideration of Courtney that the value of the stock will decline in the near future is the reasons why she was to sell the stock at the earliest despite taking her friends advice

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Define asset-backed security.​
Jet001 [13]

Answer:

An asset-backed security is a security whose income payments and hence value are derived from and collateralized by a specified pool of underlying assets. The pool of assets is typically a group of small and illiquid assets which are unable to be sold individually.

Explanation:

5 0
3 years ago
Read 2 more answers
If a firm plans to issue new stock, flotation costs (investment bankers' fees) should not be ignored. There are two approaches t
AysviL [449]

Answer:

Floating cost adjustment is 3.25%

Explanation:

Flotation-adjusted cost of equity = (Expected dividend at the end of Year 1 / Net proceeds per share) + Growth rate.

Expected dividend at the end of Year 1 (D1) = $ 2.30 (given in question)

Net proceeds per share = (21.30 - 4 % of 21.30) = $ 20.448

Flotation-adjusted cost of equity = (2.30 / 20.448) + 0.04

= 0.1125 + 0.04

= 0.1525 i.e., 15.25 %.

Flotation cost adjustment = Flotation-adjusted cost of equity - Cost of equity without flotation adjustment.

= 15.25 % - 12 % (given in question)

= 3.25 %.

Conclusion:- Flotation cost adjustment = 3.25 %

4 0
3 years ago
The __________ approaches her social world with practical knowledge, whereas the __________ approaches the world by using reason
Mnenie [13.5K]

The <u>everyday actor </u>approaches her social world with practical knowledge, whereas the <u>social analys</u>t approaches the world by using reasoning and questions to<u> </u>gain deeper insights.

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An analyst gathers, interprets, and makes use of complex records day-to-day to develop actionable steps as a way to improve strategies and optimize consequences. She or he assesses organization and client wishes, gets strong facts, and analyzes it, looking for telltale trends or areas for development.

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7 0
2 years ago
On March 1, it was discovered that the following errors took place in journalizing and posting transactions: a. Rent Expense of
Mumz [18]

Answer:

Rent expenbse         4,650 debit

Miscellaneous expense 4,650 credit

--to reverse the mistaken entry--

Rent expense 4,650 debit

           Cash                4,650 credit

--to record the correct entry--

Account Pyable  3,700 debit

   Accounts Receivables        3,700 credit

--to ammend mistaken entry--

Explanation:

We have two approachs to solve for accoutning mistakes, the first is to reverse the incorrect entry and then record the entry in a proper manner.

(like on A)

The second method is to do adjustment to fix it like on b

the mistake was to use accounts payable therefore, we write-off that and credit the correct account which is accoutns receivables

5 0
3 years ago
Technology can either shift the labor demand to the right or to the left, depending on its effect on the marginal product of lab
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Answer:

If we find out that technology has shifted the labor demand to the left, this is a disadvantage to labor.

Explanation:

To begin with, It's important to properly understand the concept of Marginal Product of Labour.

In simple terms, marginal product of labor is basically the change in unit output occasioned by a unit change in labor. There are a number of factors that may cause a marginal change in labor. Suffix to say, marginal change can either be to the right or to the left.

To narrow it down, we have technology to consider as one of the factors that ensue marginal change. Even more, this change can either be to the right or left. That is, an increase in technology might result to an increase in unit labour - this is to the right. And this is beneficial or advantageous to labor. In same vein, a increase in technology might result to a decrease in unit labour - this is to the left. And this is disadvantageous to labor.

It's on established record that introduction of new technologies, procedures and processes often have a direct effect on an individual employee. This altogether affects the marginal product in labour.

Hence, when technology brings changes to the left, this is a disadvantage to labour, as there is possibly a downsizing or reduction in labor strengths occasioned by the new technologies.

4 0
4 years ago
Read 2 more answers
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