Last year you purchased 100 shares of stock in your favorite company, ABC Corp., for your investment portfolio. This year ABC’s board of directors decided to split the stock, so you received – even without asking! – a “stock dividend” of another 100 ABC shares. Now you have 200 shares! On the day of the above event, ABC stock closed at $60 per share on the New York Stock Exchange. Meaning that you will have to report $6,000 of gross in-come on your tax return for this year, right? Wrong? Why?

Q: On the advice of your uncle, you purchased 10 shares of a well-established U.S-based corporate stock…

A: Cost of share bought initially = $25 for 10 shares After 8, quarter from 0th period, bought another…

Q: Northstar Corporation is considering to pay $10,000 the shareholders. There are 1,000 shares…

A: Dividend to shareholders = $10,000 Number of shares outstanding = 1,000 Current share price = $50…

Q: David spent $625 on 30 shares in a software company. Aftor six months, the valuos of his stocks are…

A: Price of stock = 625 Number of shares purchased = 30 Current Value of stock = 4762.80 Dividend Yield…

Q: The Turnip Company plans to issue preferred stock. Currently, the company’s stock sells for $220.…

A: Those stocks which are prioritized over common stocks at the time of payment of dividends but did…

Q: What will be the amount of shares outstanding and the share price after the stock dividend.

A: Total number of shares outstanding  = shares*(1+stock dividend) =200000*(1+10%) = 220000 shares…

Q: Zuri has 133 shares of company LMN stock. LMN issued dividend payments every quarter that totaled…

A: GivenNumber of shares: 133 Dividend per share each year = $1.91 Dividends given to shareholders and…

Q: ou purchased 1,500 shares of stock in Natural Chicken Wings, Inc., at a price of $43.67 per share.…

A: Given information : Total number of shares 1500 Price of stock  $          43.67 Dividends…

Q: Today, you sold your stock at a price of $38.88 per share. What was your total dollar return on the…

A: No. of shares purchased 850  Purchase price= $35.93 per share. Dividend per share $ 0.45 Selling…

Q: If your corporation declares a stock repurchase how many shares of stock can your corporation…

A: Answer:-182 shares Number of stock repurchased = anoubt /stock price Given amount =10000 Price = 55

Q: Last year, Luka Dončić paid $40.71 for shares of BioSteel. Afterward, he received a dividend of…

A: Dividend yield is dividend per share divided by market price at time of purchase.

Q: On February 1, you bought 100 shares of a stock for $34 a share and a year later you sold it for $39…

A: Given: Number of shares = 100 Purchase price = $34 Closing price = $39

Q: The firm has one million shares outstanding and earnings of $6 million before recording the new…

A: Formula :-  Earnings per share (EPS) is calculated as a company's profit divided by the outstanding…

Q: Assume that you own 60 shares of common stock of a company, that you have been receiving cash…

A: Stock Spilt refers to increase in number of shares of entity and shares held by investors without…

Q: If Sharon Jacobs of the previous problem (I have posted the previous problem below.) is also a…

A: Financial management is one of the important areas in the business organization. The combination of…

Q: You short sold 700 shares of a stock at $25 a share. The initial margin requirement is 75 percent…

A: If the initial margin is 75%, it means 25% of the investment is financed by a loan from the…

Q: Six months ago, you purchased 1,400 shares of ABC stock for $21.33 a share. You have received…

A: Given: Number of shares = 1,400 Purchase price = $21.33 Sale price = $24.47 Dividend = $0.6

Q: Maxwell Corp. is coming to the market with a new offering of 450,000 shares of stock at $22 to the…

A: Diluted EPS :- Diluted Earning per share, additionally called Diluted EPS, is a profit estimation…

Q: Mr. Aley bought 320 shares of Apple at $40 per share; he bought the stock at the initial margin of…

A: Sometimes, investors only pay some amount to buy the securities to broker and remaining amount is…

Q: What is the number of shares to be used in computing diluted earnings per share for the yea

A: Diluted earnings per share are used to measure the quality of the company's earnings per share if…

Q: Your corporation currently has 200,000 shares of stock outstanding that sells for $50.00 per share.…

A: Number of shares before split = 200,000 Price per share before split = $ 50 Split ratio = five-…

Q: Assume that you own 3,600 shares of $10 par value common stock and the company has a 4 for 1 stock…

A: Formula: Shares after Split = Number of shares holding before stock split x Split ratio.

Q: rrowed on margin to $10K to buy 40,000 shares of NVM stock when it was trading at 45 cents a share.…

A: Broker gives margin to the clients so that they can increase the trading volume and they can trade…

Q: An investor bought 100 shares of Omega common stock for $14,000. He held the stock for 9 years. For…

A: The expected return of investment refers to the return that is anticipated on an investment.…

Q: good-'til-canceled order to buy 200 shares of ABC at $10 a share. ABC sold between $10.50 and $11.00…

A: The right option is 3  That the order was executed on June 7 at a price of $10.00 a share.

Q: One year ago, Richard purchased 90 shares of common stock for $15 per share. During the year, he…

A: The stock return is the measure of the performance of a stock. It shows a stock's profit or loss…

Q: You have decided to retire and want to sell your shares in a closely held, all equity firm. The…

A: Share repurchase is referred to as a transaction where a company buys back its own shares from the…

Q: Three years ago, you founded your own company. You invested $120,000 of your own money and received…

A: Given that, Series A = 6.0 million or 6,000,000 shares  Series B = 1,000,000 shares  Series C =…

Q: In March of this year, Ermine felt the market had nowhere to go but down.  Accordingly, she sold…

A: Generally the return is calculated by the following simple formula  Return = (I + dP)/P0 Where  I =…

Q: On January 1, you sold short one round lot (i.e., 100 shares) of Four Sisters stock at $21 per…

A: Given Information:- Four Sisters stock price is $21 per share on january,1 Four Sisters stock price…

Q: Sup has paid a dividend of $3.82 per share per year for the last 16 years. Management expects to…

A: In the context of the given question, we compute the required figures by using the Dividend price…

Q: The company's stock was trading at $15 per share when Michelle recived a stock option grant of 3,000…

A: Employee Stock options are a type of equity compensation that is granted by companies to their…

Q: Bulldogs Inc., a corporation that can only legally issue ordinary shares with par value, recently…

A: Share price Share price is the current market price of the share. It is the price of the share at…

Q: Green and Go has 180,000 shares of stock outstanding with a current market value of $48 a share. You…

A: The total number of outstanding shares is 180,000. The current price of each share is $48. The stock…

Q: Dan has $500. He invests that $500 into the stock market and in Week 1, he collects 10% of what he…

A: The future value is the future worth of the amount that will be paid or received in the future.

Q: You bought 290 shares of Bears, Inc. for $6.30 per share 15 years ago.   Today, it has 200mm shares…

A: Compounded annual growth rate (CAGR) is used for measurement of annual growth in the investment…

Q: In 1970, Wal-Mart offered 300,000 shares of itscommon stock to the public at a price of $16.50…

A: Stock price = $16.50 per share  Number of shares purchased = 100 shares  Value of share in 2014 =…

Q: Four years ago, Quantum Computer Services issued convertible preferred stock with a par value of $60…

A: Preference shares are considered as the one who have preferential rights over the fixed value of…

Q: Phil and Terry started a new business three years ago. Two years ago, they incorporated the business…

A: Observations: There is a six-month lock-up period for the investments; hence Phil and Terry cannot…

Q: You have always loved ABC Corp. and its wonderful products and so have been an investor in its stock…

A: Calculation of total gain and character of gain: Answer: Total gain is $3,100, the character is…

Q: Teasler Inc. currently trades at $40 and has 9 million shares outstanding with Net Income of $12…

A: Note: As per Bartleby norms, when a question has multiple sub-parts, only first 3 sub-parts can be…

Q: Upon receiving the 10 percent stock dividend the value of his shares is?

A: Dividend refers to that portion of the net income of the company which the company paid to its…

Q: What will be the amount of shares outstanding and the share price after the reverse stock split.

A: Amount of shares outstanding = shares *3/6 =200000*3/6 =100000 shares

Q: Assume that when you were in high school you saved $1,000 to invest for your college education.You…

A: Part a: Total no. of shares after 2-for-1 stock split=No. of shares×2=200 shares×2=400 shares Total…