Answer:
$678
Explanation:
Given that,
Number of shares sold = 300
Selling price of each share = $42.06
Cost of purchasing shares = $39.80 per share
Total dividend received = $1,272
We can easily determine the total capital gain on this investment by comparing the sales value and purchase value of this stock.
Total capital gain on this investment:
= Sales value - Purchase value
= (Number of units × Selling price per unit) - (Number of units × cost of purchasing per share)
= (300 × $42.06) - (300 × $39.80)
= $12,618 - $11,940
= $678
No entry is required on the company's books.
<h3>What is a journal entry?</h3>
The date, the amount to be credited and debited, a brief description of the transaction, and the accounts involved are all included in each journal entry along with other information pertinent to a single business transaction. Depending on the business, it could include a list of the impacted subsidiaries, tax information, and other details.
Journal entries are of six main types, that is:
- Opening Entries
- Transfer Entries
- Closing Entries
- Adjusting Entries
- Compound Entries
- Reversing Entries
To know more about Adjusting Entries refer to: brainly.com/question/13449237
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This is an exit strategy when an entrepreneur sells his or her company to its managers a management buyout. Management buyout, MBO, is defined as a transaction where a company's management team will purchase assets and operations within the business that they manage. The can purchase from within their organization or from other parent company's. This technique gives the person/company a shortcut to having more financial freedom.
Answer: Yes they will.
Explanation:
With high interest rates, the company will be able to make better returns if they invested the money and took advantage of those interest rates instead of spending the money on their project.
Assets like bonds will be better to go into because they will offer a return based on the higher interest rates which will bring in good returns.
The company is free to use those funds to invest in projects if these projects will lead to a better return than could be gotten from holding bonds but if that is not the case, they should simply buy bonds and hold them for superior returns.
Answer:
The correct answer is option d.
Explanation:
Monopolistic competition is the market where there is a large number of firms producing differentiated products. The firms are price makers and face a downward sloping curve. There is very low or no barriers to entry and exit.
A perfect competition has a large number of firms producing identical products. These firms are price takers and face a horizontal line demand curve. There are very low or no barriers to entry and exit.
The firms in both market forms are trying to maximize profits. The market demand curve is also downward sloping in both. But the monopolistic competition produces differentiated products and firms are price makers.
