Answer:
Explanation:
A. John’s basis in the 1,000 shares of Intel stock is $45,750.
is the purchase price of $30,000 (i.e., 44 × $1,000) plus the $750 commission paid to the broker.
b.On the sale, John realizes $62500. This is the sales price of $63500 (i.e., 1,000 × $63.50)minus the transaction fee of $1,000.
c.John’s gain on the sale is $16,750 which is the amount realized minus his adjusted basis (i.e., $62500 – 45,750). The gain is a long-term capital gain because John held the stock for more than a year before selling
An inside director.
An inside director is someone who sits on the board of directors and is also an employee of the company (some board members are external non-employee advisors).
Answer:
Future Value= $158,475.64
Explanation:
Giving the following information:
He saves $500 per month for 15 years and earns 7% by investing in the stock market through an index fund.
I assume we have to determine the value of the investment at the time of retirement.
<u>We need to use the following formula:</u>
FV= {A*[(1+i)^n-1]}/i
A= monthly deposit= 500
n= 15*12= 180
i= 0.07/12= 0.005833
FV= {500*[(1.005833^180) - 1]} / 0.006833
FV= $158,475.64
Answer:
d. temporary
Explanation:
Competitive advantage refers to a competitive edge a firm gains over it's competitors by offering better value via it's products or by offering such products at reduced prices.
Competitive advantage results out of a unique or specific methods of production which is more efficient than the competitors and most importantly which cannot be imitated by competitors.
In the given case, the advantage which has accrued is on account of organic method of raising chickens and organic seasonal produce. These advantages are momentarily as, soon other restaurants shall follow suit and gradually these shall disappear.
Compounding frequency is how often your interest is calculated and added
back into your account. The more frequently this happens, the more
interest you will earn.
