Answer:
Please check the answer below
Explanation:
a. One issue is the "locking-in" of assets. If I hold shares of Corporation X, then I can delay paying taxes as long as I don't sell. Effectively, I get to keep all of the interest/dividend payments on my tax liability. However, if I discover that X is really a poor investment and Corporation Y is better, then selling X and buying Y means that I have to pay taxes. This might discourage me from making a switch to a more profitable/efficient investment decision. This is the "locking-in" effect.
b. A short-run cut might cause many people to sell stocks that they had felt "locked-in" with. The penalty for switching is smaller, so more people will do it -- resulting in a great deal of cap gains tax revenue collected.
c. Taxing realized gains, even when the stock is not sold, rather than just accrued gains would eliminate this locking-in effect. Investors would not be penalized for switching to a better investment, and long-term capital gains revenue (as well as efficiency) would rise.
Answer:
C. A portfolio consisting of about three randomly selected stocks from different sectors
Explanation:
Standard deviation helps measure risks. It determines market volatility or the spread of asset price from their average price. When the volatility of prices are rapid, standard deviation becomes high which in turn means investment is risky and vice versa. Diversification of investment tend to reduce risk. A portfolio containing a diversified randomly selected stock from three sectors would have a lower standard deviation (risk) than the other portfolios stated in the question.
Diversification is a form of risk management.
Answer:
The total product costs is $2,050
Explanation:
Given cost:
Ribs cost = $1,400
Labor cost = 45 hours × $10 per hour = $450
Seasoning and Sauce cost = $50
Advertising = $300
Grill cost = $150
Administrative cost = $100
By using these cost, we can easily compute the total product cost.
The product cost is that which is attached to the product. It can be direct material, direct labor, etc.
So product cost = Rib cost + Labor cost + Seasoning and Sauce cost + Grill cost
= $1,400 + $450 + $50 + $150
= $2,050
Other cost is not considered because they are related to general & administrative cost, selling cost which termed as period costs.
So, the total product costs is $2,050
Answer:
Originally pay for the stock = $8
Explanation:
Given:
Total return = 62.5%
Value of stock (after 1 year) = $12
Dividend during the year = $1
Originally pay for the stock = ?
Computation:
![Total\ return = [\frac{Dividend + (Value\ of\ stock\ after\ 1\ year - Purchase\ Value)}{Purchase\ Value} ]\times 100](https://tex.z-dn.net/?f=Total%5C%20return%20%3D%20%5B%5Cfrac%7BDividend%20%2B%20%28Value%5C%20of%5C%20stock%5C%20after%5C%201%5C%20year%20-%20Purchase%5C%20Value%29%7D%7BPurchase%5C%20Value%7D%20%5D%5Ctimes%20100)
![62.5 = [\frac{1 + (12 - Purchase\ Value)}{Purchase\ Value} ]\times 100\\\\0.625 Purchase\ Value = 1 + 12 - Purchase\ Value\\\\1.625 Purchase\ Value = 13\\\\Purchase\ Value = 8](https://tex.z-dn.net/?f=62.5%20%3D%20%5B%5Cfrac%7B1%20%2B%20%2812%20-%20Purchase%5C%20Value%29%7D%7BPurchase%5C%20Value%7D%20%5D%5Ctimes%20100%5C%5C%5C%5C0.625%20Purchase%5C%20Value%20%3D%201%20%2B%2012%20-%20Purchase%5C%20Value%5C%5C%5C%5C1.625%20Purchase%5C%20Value%20%3D%2013%5C%5C%5C%5CPurchase%5C%20Value%20%3D%208)
Originally pay for the stock = $8
Answer: A. $585,000
Explanation: Company's X comprehensive income would be the sum of the net Income of $120,000, revenues of $460,000, and a $5,000 gain from a foreign currency translation. This gives $585,000.
Comprehensive income is the changes in a firm's net assets from non-owner sources during a specified time period and includes net income and unrealized income such as foreign currency exchange gains or losses. It is also given as the sum of net income and other categories of items that because they have not been realized, must bypass the income statement. It serves to give a holistic view of a firm's income not fully captured on the income statement. It's also excludes changes in equity caused by the firm for example, the sale of stock or purchase of shares.
