from the My brother prefers to buy a stock that pays him a company's earnings.
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Q: 7. My brother prefers to buy a stock that pays him a from the company's earnings.
A: my brother prefer to buy a stock that pays him a dividend from the company's earnings.
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- Kelley wants to purchase shares in Classic Kars, Inc., but is torn between buying shares of common stock or shares of preferred stock. What should he consider before determining the type of share he should purchase?Does James have income, gain or loss on the transaction in which he receives stock in TOBY, INC.? Indicate the amount of any income, gain, or loss. What is James’s basis in TOBY, INC. stock? Does Jenna have income, gain, or loss on the transaction in which she receives stock in TOBY, INC.? Indicate the amount of any income, gain, or loss.Understand the reporting effect: If Brooke sells the stock and includes the $80,000 gain in pretax income, will she get her bonus? Assume any bonus paid to Brooke is not included in calculating pretax income. Specify the options: Instead of reporting the gain as part of pretax income, how else might Brooke report the gain on the sale? Identify the impact: Does Brooke's decision to classify the gain on the sale of treasury stock as part of pretax income affect the company?
- Eric is interested to invest in shares. However, he realizes there would be a risk if he invests in only similar industry. Identify and explain the concept that Eric should apply to encounter this risk.True or false: the investor will be eligible to receive the dividends when he/she buy the company stock on the payment date. ExplainAssume that Mr Abdullah has purchased some securities on which he is not entailed to get fixed rate of return. Mr Abdullah gets proportion of profit from the company’s earnings after deducting interest, tax, and preference dividend. These securities are known as; a. Bonds payable b. Equity c. None d. Long term payable
- Assume that Mr James wants to invest his savings in less risky financial instruments with minimum rate of return per annum. Therefore he invested his savings in some financial assets in which returns will be guarantee even if the company will be in losses also. The financial instruments purchased by Mr James is known as: O a. Preference shares b. Equity shares c. Partnership shares d. DebenturesAssume that Mr James wants to invest his savings in less risky financial instruments with a minimum rate of return per annum . Therefore he invested his savings in some financial assets in which returns will be guarantee even if the company will be in losses also . The financial instruments purchased by Mr James is known as : a . Debentures b . Equity shares Oc . Preference shares d . Partnership sharesIf a client had used a commission-free broker to trade stock options, but the client is dependent in college, and the client LOST money; would the client have to pay a tax?
- Cameron purchases stock in Corporation X and in Corporation Y. Neither corporation pays dividends. The stocks both earn an identical before-tax rate of return. Cameron sells stock in Corporation X after three years and he sells the stock in Corporation Y after five years. Which investment likely earned a greater after-tax return? Why?Cara wants to make sure that her stock portfolio will not have to go through probate when she dies. She wants these stocks to go to her daughter, Jolene, but does not want Jolene to have any control of the stocks until Cara dies. Cara wants to continue having exclusive right to the income from the stocks until she dies. Cara does not want to pay any gift tax. Which one of the following is the most appropriate form of will substitute for Cara to use? A)Place the stocks in joint tenancy with right of survivorship with Jolene B)Place the stocks in an inter vivos irrevocable trust C)Give Jolene a general power of appointment over the portfolio D)Name Jolene as the transfer on death beneficiary of the portfolioShamir is a bondholder of Sentiasa Ceria Bhd. His friend, Amran has purchase a stock in the same company. Discuss why Shamir and Amran might have different perception when it comes to riskiness of projects that Sentiasa Ceria Bhd chooses.
