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fiasKO [112]
3 years ago
13

stock sells for $100 rights-on, and the subscription price is $90. Ten rights are required to purchase one share. Tomorrow the s

tock of Tricki will go ex-rights. What is Tricki’s expected price when it begins trading ex-rights?
Business
1 answer:
m_a_m_a [10]3 years ago
3 0

Answer:

$99.09

Explanation:

Calculation for What is Tricki's expected price when it begins trading ex-rights

Using this formula

Expected price=Stock rights-on- [ (Stock rights-on-Subscription price)÷(10 rights+ One share)]

Let plug in the formula

Expected price=$100-[($100-$90)÷(10+1)]

Expected price=$100-($10÷11)

Expected price=$100-$0.91

Expected price=$99.09

Therefore Tricki's expected price when it begins trading ex-rights will be $99.09

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What is the main function of the Federal Open Market Committee?
Vsevolod [243]
To conduct monetary policy, it's open market operations. Buying and selling of federal government bonds to influence the money supply in the rate of interest. These operations are responsibility of Federal Open Market Committee. Ask google for more friend, hope I helped!
8 0
3 years ago
Read 2 more answers
Company purchased $60,000 of Stanton Company’s 12% bonds at 100 plus accrued interest of $2,400. On June 30, Pierce received its
ASHA 777 [7]

Answer:

d. $51,500

Explanation:

Proceed from sale of the bonds

face value x quote

50,000 x 103/100 = 51,500

The company will recognize a gain from the sale of 1,500 dollars as it sold  the investment for 51,500 while it was valued at 50,000 in their books

5 0
3 years ago
On January 1, 2012, Piper Co., purchased a machine (its only depreciable asset) for $600,000. The machine has a five-year life,
kirza4 [7]

Answer:

Piper should report $308,000 as net income for the year . Option C

Explanation:

Accumulated Depreciation till 2014 = [$600,000×(5+4+3)] ÷ 15 = $ 480,000

Book Value at beginning 2015 = $600,000 - $480,000 = $120,000

Depreciation Expense in 2015 = $120,000 ÷ 2 = $60,000

Net Income before depreciation & taxes = $ 500,000

Depreciation = $ 60,000

Electronic Benefits Transfer = Net Income before depreciation & taxes - Depreciation

= $ 500,000  - $ 60,000  

=$ 440000

Tax Expenses = $440,000 × 30% = $132,000

Net Income =$ 308,000

4 0
3 years ago
A customer has purchased 5,000 shares of ABC Corporation stock in lots of 100 shares over an extended period of time at varying
ozzi

Answer:

c. IRS rules allow the taxpayer to specify which shares being sold

Explanation:

As eahc method will make the capital gain or loss to differ the Internal Revenue Service leaves to the stockholder to decide the method

The default method is the FIFO method which states the first shares purchased are the first sale but, leaves choise to the stockhodler to use specific identification which, is what the statement correctly points out.

The method are not "required" but allowed as the stockholder see fit.

8 0
3 years ago
With its current levels of input use, a firm's MRTS is 1/3 (when capital is on the vertical axis and labor is on the horizontal
bixtya [17]

Answer: A. the firm could produce 3 more units of output if it increased its use of capital by one unit (holding labor constant).

Explanation:

The Marginal Rate of Technical Substitution(MRTS) is calculated as follows:

= Marginal product of labor / Marginal product of capital

= 1 / 3

Marginal product of labor = 1

Marginal product of capital = 3

This means that if one unit of labor is used, it produces 1 unit of output.

If one unit of capital is used however, it produces 3 units of output.

If a firm therefore used one unit of capital and kept labor constant, it could produce 3 units out output.

4 0
3 years ago
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