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musickatia [10]
3 years ago
5

You currently own 100 shares of stock in Beverly Brothers Inc. The stock currently trades at $120 a share. The company is contem

plating a 2-for-1 stock split. Which of the following best describes your position after the proposed stock split takes place?
1) You will have 300 shares of stock, and the stock will trade at or near $120 a share.
2) You will have 300 shares of stock, and the stock will trade at or near $40 a share.
3) You will have 100 shares of stock, and the stock will trade at or near $40 a share.
4) You will have 50 shares of stock, and the stock will trade at or near $120 a share.
5) You will have 50 shares of stock, and the stock will trade at or near $40 a share.
Business
1 answer:
Gwar [14]3 years ago
8 0

Answer:

No option is correct, since you will have 200 shares and each share should be worth around $60.

Explanation:

If the 2-for-1 stock split takes place then you will have 200 shares instead of 100. For every 1 share that you currently own, the corporation will issue another share.

Since the price of the shares was $120 before the stock split, after the stock split the price will be divided by two (the same proportion). So each new share will cost approximately $60.

In order for option 2 to be correct, the stock spit should have been 3-for-1.

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blondinia [14]

Answer:in this photo, this phase of the moon is called waning crescent.

The next phase will be new Moon.

About 27 days from now the phase will be waning crescent.

Explanation: Just did it on edge 2020 :)

8 0
3 years ago
Read 2 more answers
Quarter Real GDP (billions of dollars) Long-Run Trend of Real GDP (billions of dollars) 1 4,000 4,000 2 4,160 4,120 3 4,326 4,24
bekas [8.4K]

Answer:

6%

Explanation:

As per given data

Quarter     Real GDP ($billions)     Long-Run Trend of Real GDP ($billions)

   1                      4,000                                   4,000

   2                     4,160                                    4,120

   3                     4,326                                    4,244

   4                     4,413                                    4,371

   5                     4,501                                    4,502

   6                     4,591                                    4,637

   7                     4,499                                    4,776

   8                     4,409                                    4,919

   9                     4,673                                    5,067

   10                    4,954                                    5,219

   11                     5,252                                    5,376

   12                    5,376                                    5,537

Growth of GDP = (DGP of Current/recent period - GDP of Prior period) / DGP of Prior period

In this question prior period is quarter 10 and current /recent period is quarter 11.

So, formula will be

Growth of GDP = (DGP of quarter 11 - GDP of quarter 10) / GDP of quarter 10

As we need to calculate the real GDP growth the formula will be as follow

Growth of real GDP = (Real DGP of quarter 11 - Real GDP of quarter 10) / Real GDP of quarter 10

Growth of real GDP = ($5,252 billion - $4,954 billion) / $4,954 billion

Growth of real GDP = $298 billion / $4,954 billion

Growth of real GDP = 6.02% = 6%

3 0
3 years ago
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8 0
3 years ago
For fixed-rate bonds it's important to realize that the value of the bond has a(n)-Select relationship to the level of interest
pogonyaev

Answer:

Answer is explained in the explanation section below.

Explanation:

It's necessary to remember that the value of fixed-rate bonds is inversely proportional to the level of interest rates. The value of the bond decreases as interest rates rise; moreover, the value of the bond rises as interest rates fall. A Bond with a lower coupon sells for less than its face value. When the going rate of interest is higher than the coupon rate, this condition arises. The value of the asset would increase over time. A higher coupon bond is one that sells for a higher price than its face value. When the going rate of interest is lower than the coupon rate, this condition arises. Its value will gradually decrease until it reaches its maturity value. A par value bond that sells at par, with a coupon rate equal to the current interest rate. The coupon is usually set at the going market rate on the day the bond is sold, so it sells at par at first.

Calculations:

C = Coupon Payments = $60 (Par Value x Coupon Rate)

n = number of years = 10

i = market rate or required yield = 7% = 0.007

K = number of coupon payments in 1 year = 1

P = value at maturity or par value = 1000

Present value of ordinary annuity formula:

Bond Price = C/k * [\frac{1 - \frac{1}{(1 + \frac{i}{k})^{nk}  } }{\frac{i}{k} } ] + \frac{P}{(1 + \frac{i}{k})^{nk}  }

Just plug in the values and you will get:

Bond Price = 60 x 7.02 + 508.35

Bond Price = 421.41 508.35

Bond Price = $929.76

Similarly,

Data:

C = Coupon Payments = $60 (Par Value x Coupon Rate)

n = number of years = 10

i = market rate or required yield = 7% = 0.007

K = number of coupon payments in 1 year = 2

P = value at maturity or par value = 1000

Present value of ordinary annuity formula:  

Bond Price = C/k * [\frac{1 - \frac{1}{(1 + \frac{i}{k})^{nk}  } }{\frac{i}{k} } ] + \frac{P}{(1 + \frac{i}{k})^{nk}  }

Just plug in the values and you will get:  

Bond Price = 30 x 14.21 + 502.57

Bond Price = 426.37 + 502.57

Bond Price = $928.94

8 0
3 years ago
At the beginning of 2018, England Dresses has an inventory of $140,000. However, management wants to reduce the amount of invent
Bad White [126]

Answer:

purchases = 160000

Explanation:

given data

beginning inventory = $140,000

amount of inventory on hand = $80,000

net sales = $400,000

gross profit rate = 40%

solution

we first Computation of cost of goods sold  hat is

Gross profit rate = \frac{gross profit}{net sales} × 100

= \frac{gross profit}{400000} = = \frac{40}{100}

= 100 Gross profit = 16000000

so

Gross profit = 160000

and

Cost of goods sold is = sales - gross profit

so

Cost of goods sold = 400000 - 160000

Cost of goods sold = 240000

and

Cost of goods sold = opening inventory + purchases - closing inventory  

so put here value

240000 = 140000 + purchases - 60000

so purchases = 160000

7 0
3 years ago
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