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Anettt [7]
3 years ago
5

ack purchased 200 shares of Apple stock earlier this month at the price of $210 per share. Apple stock is trading at $218 today

and will pay a dividend of $2/share with tomorrow being the ex-date. Jack faces an ordinary income tax rate of 35% and a capital gain tax rate of 18.8%. How much unrealized capital gains will he have after the dividend payment
Business
1 answer:
VARVARA [1.3K]3 years ago
4 0

Answer:

The amount of unrealized capital gains he will have after the dividend payment is $1,200.

Explanation:

Apple stock price per share today = $218

Dividend per share = $2

Apple stock ex-date price per share = Apple stock price per share today - Dividend per share = $218 - $2 = $216

Unrealized capital gains = Number of Apple stock shares purchased * (Apple stock ex-date price per share -  Price per share at which Apple stock shares were purchased) = 200 * ($216 - $210) = 200 * $6 = $1,200

Therefore, the amount of unrealized capital gains he will have after the dividend payment is $1,200.

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Dyckman Dealers has an investment in Thomas Corporation bonds that Dyckman accounts for as a trading security. Thomas Corporatio
gtnhenbr [62]

Answer:

$20,000

Explanation:

The small investment in equities and bonds must be valued at market value and must not be accounted for in-accordance with the speculation of the company. So the market value here is $20,000 and must be valued at this price irrespective of the management valuation.

5 0
3 years ago
Assume you pay $24,000 today in exchange for an annuity with monthly payments, an APR of 6.75 percent, and a life of 15 years.Wh
Fed [463]

Answer:

$212.38

Explanation:

In this question, we use the PMT formula which is shown in the spreadsheet.  

The NPER represents the time period.

Given that,  

Present value = $24,000

Future value = $0

Rate of interest = 6.75% ÷ 12 months = 0.5625%

NPER = 15 years × 12 months = 180 months

The formula is shown below:

= PMT(Rate;NPER;-PV;FV;type)

The present value come in negative

So, after solving this, the answer would be $212.38

4 0
3 years ago
Which level of quality of information would eventually exist in the market for lemons assuming there was no way to gain assuranc
Neko [114]

The level of quality of information would eventually exist in the market for lemons assuming there was no way to gain assurance regarding the accuracy of the information would be low only.

In the given scenario we are given that there is no way to reassure ourselves that the information is accurate about the lemons in the existing market.

So we can not be a hundred percent sure that the information regarding the lemons existing in the market is correct.

As a result, if there was no method to verify the authenticity of the information, only low-quality information would eventually be available in the market for lemons.

Learn more about the market:

brainly.com/question/25754149

#SPJ4

3 0
1 year ago
Funds acquired by the firm through retaining earnings have no cost because there are no dividend or interest payments associated
kow [346]

Answer:

False

Explanation:

Retained earnings have no flotation costs, but have opportunity costs. For example, if companies distribute the earnings to shareholders, shareholders can invest the funds in alternative sources for returns.

8 0
3 years ago
Read 2 more answers
Your investment has a 20% chance of earning a 30% rate of return, a 50% chance of earning a 10% rate of return, and a 30% chance
stellarik [79]

Answer:

9.2%

Explanation:

expected return of the investment = potential return x chance of each return happening

Expected return of the investment:

  • 20% chance of occurring x 30% potential return = 0.2 x 30% = 6%
  • 50% chance of occurring x 10% potential return = 0.5 x 10% = 5%
  • 30% chance of occurring x -6% potential return = 0.3 x -6% = -1.8%
  • total expected return = 9.2%
6 0
3 years ago
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