of her shares, as follows: Shares Dog Ltd Cat Ltd Bird Ltd Date purchased Cost of purchase 1 March 2013 1 July 2021 1 March 2012 $8,000 $6,000 $10,000 Date sold 1 June 2022 1 June 2022 1 June 2022 Sales proceeds $14,000 $18,000 $5,000 You can assume that apart from the purchase price, she did not incur any costs associated with the purchase or sale of these shares. You can also assume she has no capital losses from prior years. Calculate Melanie's net capital gain or loss for the year ended 30 June 2022, assuming she wants to minimise her tax liability.
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- Soal 3 Currently an investor is considering investing his funds in shares between the shares of 3 companies The alternatives to consider are: Alt. I: 100% shares of PT. C Alt. II. : 50% shares of PT. B and 50% shares of PT. C AIt. II: 60% shares of PT. A and 40% of PT. B The stock return patterns of each company during 2021 - 2025 are as follows: Tahun Expected Return % PT. A PT. B PT. C 2021 65 65 55 2022 62 45 57 2023 53 62 40 2024 55 64 42 2025 41 50 47 Based on this data Calculate the expected return, standard deviation and coefficient of variation for each alternative! If the investor is someone who is risk averse, then which alternative will be the most efficient for this investor to choose? Explain your answer The measurement of the amount of risk can be done using several methods depending on the investment in a single asset or portfolio. Briefly explain the company's objective of…QUESTION 3.1 Tusker Corporation is considering a 3- for- 2 share split. It currently has the shareholder’s equity position shown. The current share price is R120 per share. The most recent periods earnings available for ordinary shares are included in retained earnings. Preference shares R1 000 000Ordinary shares (100 000 shares at R3 R300 000per shareShare premium R1 700 000Retained earnings R10 000 000Total shareholders’ equity R13 000 000 What effects should the share effect have on Tusker?QUESTION 3.2 Tusker Corporation is considering a 3- for- 2 share split. It currently has the shareholder’s equity position shown. The current share price is R120 per share. The most recent periods earnings available for ordinary shares are included in retained earnings. Preference shares R1 000 000Ordinary shares (100 000 shares at R3 R300 000per shareShare premium R1 700 000Retained earnings R10 000 000Total shareholders’ equity R13 000 000 What change in share price would you expect to result from the share split?
- 17. Braaf Ltd has 100,000 shares on issue currently trading at $40 per share and is trying to determine whether they should distribute $100,000 in excess cash via dividends or via a share repurchase. Rodney owns 1,000 shares in Braaf Ltd and could use $1,000 of cash at the moment. Assuming perfect capital markets, free of taxes, information costs, transaction costs etc., demonstrate why Rodney’s financial position should be unaffected by Braaf Ltds’ decision to pay the dividend, repurchase the shares or do neither.QUESTION 3.3 Tusker Corporation is considering a 3- for- 2 share split. It currently has the shareholder’s equity position shown. The current share price is R120 per share. The most recent periods earnings available for ordinary shares are included in retained earnings. Preference shares R1 000 000Ordinary shares (100 000 shares at R3 R300 000per shareShare premium R1 700 000Retained earnings R10 000 000Total shareholders’ equity R13 000 000 What is the maximum cash dividend per share that the firm could pay on ordinary shares before and after the share split? (Assume that legal capital includes all paid-in capital.)Problem 4. Mr. X is an investor in ABC Corporation. In 2020, he has 1,000 share holdings acquired at P120 per share classified as capital asset. Mr. X uses FIFO in costing his investment holdings. Required: a.) What would be the net capital gain in March? b.) How much is the nondeductible loss in May? c.) Supposing that all the remaining shares were liquidated in December 2021 at 130 per share, what would be the capital gain(loss) to be recognized.
- 7.] DIY Corporation was planning to used its treasury shares and needs your financial advice on these matters: 7.1Treasury shares were acquired by the corporation at P 200.00 per share.. May the corporation sell them at only P 150.00, when the par value of each share is P 100.00? Explain. 7.2 DIY Corporation plans to used its treasury shares to vote in the meetings and received dividends. Can the corporation be allowed to do these actions?Problem 4. Mr. X is an investor in ABC Corporation. In 2020, he has 1,000 shareholdings acquired at P120 per share classified as a capital asset. Mr. X uses FIFO in costing his investment holdings b. How much is the nondeductible loss in May? c. Supposing that all the remaining shares were liquidated in December 2021 at 130 per share, what would be the capital gain(loss) to be recognized.1. Determine the amount to be reported under preference share capital.2. Compute for the 2021 treasury shares balance.3. Total share premium to be reported in the December 31, 2021 Statement of Financial Position is?4. Assuming that 80% of the warrants are exercised, compute for the ordinary share capital to be reported in the 2021 year end Statement of Financial Position?5. Setting aside the exercise of warrants and the shareholders rather converted the 50,000 convertible shares, how much will be the total share premium to be reported in the 2021 financial statements?6. Compute for the total ordinary share capital to be reported in the 2021 Statement of Financial Position if in addition to the transactions in 27, the following occurred: 1. 80% of the warrants were exercised; 2. 50,000 of the convertible preference shares were converted; 3. The remaining unissued treasury shares were retired.
- If Sharon Jacobs of the previous problem (I have posted the previous problem below.) is also a founder of the company and has retained 8 million shares of its stock, how much of a difference will the auditor's decision make in her personal wealth outside of the stock option? Read Business Analysis Case 3. Henderson Industries Inc.'s stock is currently selling at $22.40 per share. Sharon Jacobs, the CEO, has options to buy 250,000 shares at $25.50 per share that expire at the end of the year. Sharon feels that if the traditional accounting method is used, implementing the deferred payment sales program will push the stock's price about halfway toward the level it was at two years ago which was about $43. (That method recognizes the entire price and cost of a sold item on the income statement at the time of sale.) If the installment sales technique is used, the price of the stock will probably be unchanged but may even go down a little. How much will Sharon make on her stock option i…4. How much is the gain (loss) on the sale of Mad Company ordinary shares on July 18, 2023? A. P4,500B. P3,000C. P1,500D. P0 5. What is the amount transferred to retained earnings if Jam Company opted to transfer the unrealized gain or loss relating to the shares sold? A. P11,100B. P5,500C. P5,100D. P1,500Parts D-1 and D-2 please. Suppose you own 32,000 shares of common stock in a firm with 1.6 million total shares outstanding. The firm announces a plan to sell an additional 0.8 million shares through a rights offering. The market value of the stock is $32 before the rights offering and the new shares are being offered to existing shareholders at a $2 discount. a. If you exercise your preemptive rights, how many of the new shares can you purchase?b. What is the market value of the stock after the rights offering? (Enter your answer in millions rounded to 1 decimal place. (e.g., 32.1))c-1. What is your total investment in the firm after the rights offering? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places. (e.g., 32.16))c-2. If you exercise your preemptive right how many original shares and how many new shares do you have?d-1. If you decide not to exercise your preemptive rights, what is your investment in the firm after the rights…