If an investor sells an ordinary share at a price above that which he or she originally paid, the investor is said to have earned Select one: a. a capital expenditure. b. a capital gain. c. an originating point. d. a dividend. explain well all point of question
Q: The yield to maturity of a $1,000 bond with a 6.6% coupon rate, semiannual coupons, and two years to…
A: The bond price is based on the discounted value of future cash flows coming from the bond. This…
Q: The Isis Company considers introducing a new lower-end olive oil brand with cheaper packaging in…
A: Market cannibalization Market cannibalization is basically a loss in sales of the existing old…
Q: Suppose you know that a company's stock currently sells for $65.90 per share and required return on…
A: Stock price (P0) = $65.90 Required return (r) = 0.12 Dividend yield = 0.06 (i.e. 0.12 / 2) Capital…
Q: what are the the foreign exchange exposure of a multinational company with it's headquarters in…
A: Foreign exchange exposure refers to the risk faced by a multinational company of losing money due to…
Q: An unpaid credit card bill for $656.95 had a due date of May 8. Purchases of $385 were made on May…
A: Here, Interest Rate is 1.4%
Q: You ran a little short on your spring break vacation, so you put $1,000 on your other credit card.…
A: Information Provided: Present value = $1000 Quarterly payment = $60 Interest rate = 18% compounded…
Q: Assume that a 3-year Treasury security yields 3.40%. Also assume that the real risk-free rate (r")…
A: Maturity Risk Premium (MRP) is the additional return that investors require to invest in longer-term…
Q: You currently have $5,000. First United Bank will pay you an annual interest rate of 8.1, while…
A: The concept of time value of money will be used here. Future value or amount is obtained by…
Q: At the end of every year an investor pays £2,000 towards additional voluntary contributions to build…
A: A pension fund is a type of investment fund that is set up to provide retirement income to employees…
Q: Both Bond Bill and Bond Ted have 12.4 percent coupons, make semiannual payments, and are priced at…
A: Bond valuation is the process of determining the fair value of a bond, which is a debt instrument…
Q: Bronze It Tanning Salon expects annual sales of $1,175,000, annual fixed cash outlays are $586,000 a…
A: The difference between the current value of cash inflows and outflow of cash over a period of time…
Q: If the yield curve is downward sloping, what is the yield to maturity on a 30-year Treasury bond…
A: In an inverted yield curve or downward sloping, short-term bonds have higher yield than long-term…
Q: Cook Security Systems has a $37,500 line of credit, which charges an annual percentage rate of prime…
A: The line of credit is the maximum limit of credit that a customer can avail from the financial…
Q: Lennar Corporation's one-year bond has a yield equal to 6.6%. Suppose that the maturity risk premium…
A: Given the following: One-year bond yield = 6.6% Maturity risk premium = (t-1)*0.15% The maturity…
Q: Suppose a bank currently has $250,000 in deposits and $27,000 in reserves. The required reserve…
A: Bank Deposits = d = $250,000 Current Reserve = cr = $27,000 Required reserve ratio = rr = 10%…
Q: Given the following information and assuming a 20% CCA class, what is the NPV for this project?…
A: CCA tax shield The reduction in taxes owed as a result of CCA is known as the CCA tax shield (or…
Q: A financial analyst draws a cash flow diagram to model the following scenario. A 90-day commercial…
A: Note: 365 days convention is used in the calculation for accurate answers Here, Initial cash outflow…
Q: Marbles are distributed evenly, Jhon takes 3/7, mike takes 3/7 of the remainder and Howie takes the…
A: jhon ratio = 3/7 of the total marbles Mike ratio = 3/7 of the remaining marbles after jhon takes…
Q: firm z has issued 1000000 bonds. each bond is priced at $929 and has a face value of $1000. it pays…
A: Information Provided: Price of bond = 929 Face Value = 1000 Annual Coupon = Coupon Rate * Face…
Q: the company's preferred stock pays an annual dividend of 4.5 percent and is currently selling for…
A: The price a firm must pay for the revenue it will receive from issuing and selling preferred stock…
Q: Give typing answer with explanation and conclusion Purchasers of which of the following are…
A: When a company declares a dividend, it sets a record date, which is the date on which the company…
Q: Which of the following are considered tax-sheltered annuity plans? Education IRAs Stock bonus…
A: A tax-sheltered annuity plan, also known as a TSA or 403(b) plan, is a retirement savings plan…
Q: If the simple CAPM is valid and all portfolios are priced correctly, which of the situations below…
A: Capital Asset Pricing Model: It is a financial model that estimates an investment's or asset's…
Q: Solve by using the sinking fund or amortization formula. (Round your answer to the nearest cent.)…
A: The concept of time value of money states that the current worth of money is more than its value in…
Q: A household's "debt service ratio" is best defined as: Select one: a. Actual monthly investment…
A: The debt service ratio (DSR) is a financial metric used to measure the percentage of a borrower's…
Q: Suppose that the yield on a two-year Treasury security is 5.84%, and the yield on a five-year…
A: Under expectation theory, we can determine the future rates using the spot rates as the term…
Q: You will deposit $112 from each of your bi-weekly paychecks. You think that you can earn an…
A: To calculate the future value , the effect of compounding statement on the rate of interest given…
Q: Avi’s investments have had disappointing returns. The interest rates on his mutual fund and bond…
A: Investments refer to the act of allocating resources, usually money, with the expectation of…
Q: Hi can i calculate the value of a firm by discounting the Unlevered net incomes?
A: The DCF analysis involves projecting the firm's future unlevered net income and then discounting…
Q: Calculate the missing information for the installment loan that is being paid off early. Number of…
A: An installment loan refers to a contract between the lender and the borrower for raising funds in…
Q: Alexander can purchase a new car for $25,000. Alternatively, in addition to a down payment of…
A: Present value is the estimation of the current value of future cash value which is likely to be…
Q: Who was the first treasurer of South Australia after it became a self-governing Colony in October…
A: With the treaty of the new constitution by the British Parliament through the Constitution Act,…
Q: Aspen Company's non-callable bonds currently sell for $985. They have a 15-year maturity, an annual…
A: Yield to maturity refers to the internal rate of return which is earned by the investor who makes…
Q: Question 1 When using the benefit cost ratio method of analyzing a project, which of the following…
A: The benefit-cost ratio (BCR) method is a technique for evaluating the financial viability of a…
Q: A registered nurse makes $14.00 per hour. Next month, she will receive a 3% increase in her hourly…
A: When the employee receive wages on the basis of number of hours worked ,it is known as wage rate per…
Q: the Rebate Fraction wrong but everything else correct
A: Data given: No. of payments=18 Payments made=6
Q: Cheng obtain an 8 year subsidized loan of $5,000 at an annual interest rate of 3.9% and must pay a…
A: A loan is a financial arrangement in which one or more people, companies, or other entities lend…
Q: Which of the following statements is true? O Increasing dividends will always decrease the stock…
A: A dividend is a distribution of profits by a company to its shareholders. It is a portion of the…
Q: Ron Sample is the grand prize winner in a college tuition essay contest awarded through a local…
A: For investment amount calculation we will use the below formula Investment amount =…
Q: "Company B, is a private company that designs, manufactures and distributes certain consumer…
A: Data given: Earnings=$40 million Av. Price /Earnings Ratio=10 No. of shares to be issued=10 million
Q: how much interest will he pay in his 36th payment?
A: To determine the interest, he would pay on his 36th payment, we need to determine the loan balance…
Q: For four years, Mary Thomas invested $4,400 each year in America Bank stock. The stock was selling…
A: The total amount invested in a share is calculated as number of shares multiplied by price per share…
Q: Amortization schedule. Chuck Ponzi has talked an elderly woman into loaning him $45,000 for a new…
A: Step 1 A loan's or an intangible asset's book value can be periodically reduced over a certain…
Q: A 20-year annuity of forty $7,000 semiannual payments will begin 9 years from now, with the first…
A: Here,
Q: Smile Corp. Issued 16% p.a., 10-year Debenture bond, P6,000 face value, interest due every four (4)…
A: Bond: A bond represents a financial debt security issued by the issuer to raise capital in debt.…
Q: Assume a stock trades at $95, the volatility of the stock is 36%, and the risk-free interest rate is…
A: Put Price = Xe^(-rT)N(-d2) - S*N(-d1) Where: X is the strike price ($101) r is the risk-free…
Q: You need to have $30,750 in 11 years. You can earn an annual interest rate of 6 percent for the…
A: To calculate the deposit amount we will use the below formula Deposit amount =…
Q: Kilroy Enterprises' bonds currently sell for $1,050. They have a 6-year maturity, an annual coupon…
A: In the given case, we have provided the current selling price of bond along with par value of bond.…
Q: You anticipate that Canuck Industries will make total payouts of $4.675 billion at the end of this…
A: The average rate of return on an investment over a given time frame needed to achieve the desired…
Q: A debt of $31,000 is repaid over 8 years with payments occurring semi-annually. Interest 4%…
A: To solve this question, we first need to determine annual equivalent yield as the compounding period…
If an investor sells an ordinary share at a price above that which he or she originally paid, the investor is said to have earned
Select one:
a.
a capital expenditure.
b.
a
c.
an originating point.
d.
a dividend.
explain well all point of question.
Step by step
Solved in 2 steps
- A dividend which is a return to stockholders of a portion of their original investments is a CHoices; property dividend. liquidating dividend. participating dividend. liability dividend.Which of the following would increase the value of an investment in associate? a. Share in the other comprehensive income b. Share in the net loss c. Share in the other comprehensive loss d. Dividend receivedHow is the realised percentage return from investing in a share calculated? A. The cash flows received from the share divided by the price paid for the share. B. Dividends received plus the difference between the selling price and the purchase price, divided by the purchase price. C. The price paid for the share divided by the selling price. D. Both (b) and (c)
- When an investor uses the equity method to account for investments in common stock, cash dividend received by the investor from the investee should be recorded as _____. A. A deduction from the investment account. B. A deduction from the stockholders' equity account, dividends to stockholders. C. Dividend income. D. A deduction from the investor's share of the investor's profits.Assume 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 payableWhat is the balance of the ordinary share premium after considering the above transactions? 2. What is the balance of the preference share premium after considering the transactions of Forgiveness Inc.?
- What is reflected in the additional paid-in capital account?Required to answer. Single choice. a. Whichever is higher of (1) the difference between the market price and the par value when the stock was issued and (2) the difference between the market price and the par value when the stock was reacquired b. Whichever is lower of (1) the difference between the market price and the par value when the stock was issued and (2) the difference between the market price and the par value when the stock was reacquired c. The difference between the market price and the par value when the stock was reacquired d. None of the above e. The difference between the market price and the par value when the stock was issued.According to the basic Dividend Discount model, the value an investor should assign to a share of stock is dependent on the length of time he or she plans to hold the stock. Is the above statement True or False? Please Explain.Which of the following statements is correct? Multiple Choice Earnings and profits are exactly the same as retained earnings. Distributions of appreciated property create a gain to the stockholder recipient. A distribution from earnings and profits is a dividend. Distributions paid in excess of earnings and profits are taxable to the extent of stockholder basis.
- 1. What is the market value for each ordinary share capital upon the declaration of the share capital dividend?2. What is the total amount of contributed capital?There are two primary means to earn income as a stockholder. The first method is dividend income, and the second method is earnings from capital gains. With respect to the investor seeking dividend income, when an investor buys a stock from a corporation with a primary focus to earn dividend income, they will typically expect a higher dividend on common stock versus preferred stock. Discuss the dividend payment requirements of a common stock versus preferred stock, in terms of which type of stock has a primary claim on dividend distributions. Explain why the common stock investor demands a higher dividend rate.When an investor uses the cost method to account for investments in subsidiary, cash dividends received by the investor from the investee should normally be recorded as: A. Ignored. B. Dividend income. C. An addition to the investor’s share of the investee’s profit. D. A deduction from the investment account E. A deduction from the investor’s share of the investee’s profit.