Answer:
Option C
Number of shares outstanding after split = 150,000 units
Explanation:
<em>A stock split occurs where a company creates additional shares in units such the total nominal value of the outstanding shares remains the same. With a stock split, the total outstanding shares increases without a change in the total nominal value while the nominal value per share reduces.</em>
Total shares before the split = 50,000
Total outstanding shares after split
= 50,000 × 3 = 150,000
Number of shares outstanding after split = 150,000 units
Answer:
A. Deadweight loss = 125 units.
B. Deadweight loss = 25 units.
Explanation:
In a free market and completely efficient economy, the consumer surplus equals the producer surplus. Both benefits of free trade. When consumers o producers have a minor surplus, necessarily implies a loss on eficiency, usually caused by government regulations like taxes or price ceilings.
The amount of welfare lost is measure by the difference between consumer and producer surplus.
In the first case:
|Consumer surplus - producer surplus| = 25 units
|250- 125| = 125 units
And in the second case:
|180- 155| = 25 units
Dussel does not consider legitimate compulsion to be malicious, on the other hand he considers illegitimate compulsion.
The investor will show a capital loss of $155.
We gather the following information from this question:
Pop of the fund three years ago : $12
NAV of the fund three years ago : $11.50
Current Pop : $11
Current NAV : $10.45
Number of shares : 100 shares.
We need to calculate capital loss or gain on the 100 shares in the mutual fund.
While taking the cost per unit, <u>we need to consider the public-offer-price (pop) into consideration, since an investor can only buy the shares at pop</u>.
Similarly, while selling the shares, the <u>shareholder can liquidate his position by selling back to the mutual fund at the NAV prevailing at the end of the business day</u> on which he wants to sell.
So, the formula to calculate capital gain or loss is:



Answer:
Varga should recognize $50,000 revenue in 2018.
Explanation:
Revenue = $75,000 × 8/12 months
= $50,000
Therefore, Varga should recognize $50,000 revenue in 2018.