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Aleks04 [339]
3 years ago
14

Bart is a lawyer and an employee of Alway, Inc. Bart is representing Alway in its purchase of Steel Co. Bart learns from Alway's

company files that Steel Co. is in the final stages of negotiation for a highly profitable five-year contract. Bart uses this nonpublic information to purchase Steel Co. stock, and is handsomely rewarded. Bart will:
Business
1 answer:
Vinil7 [7]3 years ago
6 0

Answer:

C. be held liable under the misappropriation theory of insider trading.

Explanation:

Insider trading refers to the practice of utilizing confidential information that is not available for the public in order to make a profit in stock market. Currently, this action is deemed as illegal ever since the  The Insider Trading Sanctions Act was created in  1984 .

The Security and Exchange omission created that act in order to ensure that no investors have to experience unfair situation in the market . Having confidential information will make it really easy for a person to predict whether the price of the stock will go up or down.

This can be seen In Bart's action. Pay attention to this part of the excerpt:

<em>Bart learns from Alway's company files that Steel Co. is in the final stages of negotiation for a highly profitable </em>

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The next dividend payment by Wyatt, Inc., will be $2.30 per share. The dividends are anticipated to maintain a growth rate of 4.
balandron [24]

Answer:

Required return 10.27%

Dividend yield 5.77%

Expected capital gains yield 4.5%

Explanation:

Calculation for required return using this formula

A. R = (D1 / P0) + g

Let plug in the formula

Required return = ($2.30 / $39.85) + .045

Required return = .1027*100

Required return= 10.27%

Therefore Required return is 10.27%

Calculation for dividend yield using this formula

Dividend yield = D1 / P0

Let plug in the formula

Dividend yield = $2.30 / $39.85

Dividend yield = .0577*100

Dividend yield = 5.77%

Therefore Dividend yield is 5.77%

Calculation for the expected capital gains yield

Using this formula

Expected capital gains yield=Required return-Dividend yield

Let plug in the formula

Expected capital gains yield=10.27%-5.77%

Expected capital gains yield=4.5%

Therefore Expected capital gains yield is 4.5%

7 0
3 years ago
On July 28, Vent Corp. sold $500,000 of 4%, eight-year subordinated debentures for $450,000. The pur­chasers were issued 2,000 d
KengaRu [80]

Answer: Vent should record $70,000

Explanation:

The requirement is to determine the amount of discount on the debentures that Vent should record at issuance.

ASC Topic 470 states that the proceeds from the issuance of debt with detachable stock warrants should be allocated between the bonds and the warrants based upon their relative fair values at the time of issuance.

In this case, the fair value of the bonds is not known, but the fair value of the warrants is $10 per warrant. Thus, the total fair value of the warrants is $20,000 ($10 × 2,000 warrants). The fair value of the debentures can be estimated to be $430,000 ($450,000 total proceeds – $20,000 fair value of warrants). The face value of the bonds $500,000 less the fair value of the bonds of $430,000 equals the bond discount of $70,000.

6 0
3 years ago
You're welcome. As a first step, our team analyzed the other potential primary contenders. The reality is that with such a stron
SCORPION-xisa [38]

Below is the complete question:

CANDIDATE: Thank you for agreeing to conduct some research to assess my potential as a candidate in the upcoming election.

CONSULTANT: You're welcome. As a first step, our team analyzed the other potential primary contenders. The reality is that with such a strong field, it is going to be difficult to gain the _______ of votes necessary to avoid a runoff unless you want to go negative from the start.

Answer:

Majority

Explanation:

The reality is that with such a strong field, it is going to be difficult to gain the MAJORITY of votes necessary to avoid a runoff unless you want to go negative from the start.

8 0
3 years ago
Medication is the most common treatment for seizure disorders.
Arada [10]
I don’t understand what is the question?
6 0
3 years ago
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Buying and selling products online is called ____________. A. Information systems B. Browsing the web C. E-commerce D. E-mailing
Nadusha1986 [10]

Answer:

The answer is C. E-commerce

Explanation:

E-commerce refers to the process of buying or selling products or services over the Internet. So i believe this is the answer to the question.

3 0
3 years ago
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