You owned 300 shares of Microsoft stock. But you just sold 100 shares thismorning. Which one of the following statements best describes the stock saletransaction?This is an example of a secondary market transaction.This is an example of primary market transaction.This is an example of an exchange of physical assets.This is an example of money-market transaction.

Primary market: The primary market is a place where issue of securities at first time. In this…

Answered: You owned 300 shares of Microsoft…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Hi, If a company has 32,000 common stock shares outstanding $10 par value, then purchases 2,300 shares of treasury stock at $25 per share. How would this be jouralized? Also, after those transaction the same company declared a $0.10 per share cash dividend on the common stock outstanding. How would this be jouralized?
Your corporation is evaluating declaring a cash dividend or declaring a share repurchase. In either case your corporation only has $10,000 to spend. Your corporation has 700 shares of stock outstanding that is currently selling for $55.00 per share. Please show your calculations in the space provided.What would be the amount of cash dividend per share if your corporation declares a cash dividend?
1) What is Common Stock,2) This is an example from what I read in my textbook. It stated that the owners purchased 20,000 shares of Common Stock. a) If they are already owners of the company why would they buy common stock b) Since they are the owners who are they buying the common stock from?3) Please explain Par Value and please give an example
which of the following is an example of a primary market transaction? Kellogg issued $200 million of 30-year bonds last month Schwab large cap fund sold 750,000 shares of Apple stock last week Tyler bought 200 shares of Kellogg stock yesterday Mike sold 100 shares of Stryker stock T. Rowe Price equity index fund bought 500,000 shares of coca-cola yesterday
Which of the following is a primary market transaction? You sell 200 shares of Johnson & Johnson stock on the NYSE through your broker. Johnson & Johnson issues 2,000,000 shares of new stock and sells them to the public through an investment banker. You buy 200 shares of Johnson & Johnson stock from your younger brother. You just give him cash and he gives you the stock¾the trade is not made through a broker. One financial institution buys 200,000 shares of Johnson & Johnson stock from another institution. An investment banker arranges the transaction. You invest $10,000 in a mutual fund, which then uses the money to buy $10,000 of Johnson & Johnson shares on the NYSE.
On October 17, 2021, LILAC Corporation exchanged 20,000 shares of its ₱200 par value stock for land. A few months ago, the land was appraised by an independent appraiser at ₱5,000,000. The land had an initial cost of ₱4,500,000. LILAC is currently trading at the stock exchange at ₱300. How much should be credited to Share Premium upon the issuance of the shares? Choose answer, either a or b. Show solution in good accounting form. a.) ₱ - 0 - b. ) ₱ 2,000,000
How would this example look in the basic accounting equation?Investors selling their own stock to other investors for 140$ per share of stock.
Montedosa Corporation has 400,000 shares of common stock outstanding, a P/E ratio of 8, and P500,000 available for common shareholders. The board of directors has just voted a 3-2 stock split. a. If you have 100 shares of stock before the stock split, how many shares will you have after the split up? b. What was the total value of your investment in Montedosa stock before the split? c. What should be the total value of your investment in Montedosa stock after thesplit?
FarCry Industries, a maker of telecommunications equipment, has 2 million shares of common stock outstanding, 1 million shares of preferred stock outstanding, and 10,000 bonds. Suppose the common shares sell for $26 per share, the preferred shares sell for $14.00 per share, and the bonds sell for 97 percent of par.What weight should you use for preferred stock in the computation of FarCry’s WACC? (Round your answer to 2 decimal places.)
The following question is based on the following information about the stocks of Whitestone REIT, HCC Insurance Holdings, Inc., and SanDisk Corporation.† Price($) Dividend Yield(%) WSR(WSR Whitestone REIT) 16 7 HCC(HCC Insurance Holdings, Inc.) 56 2 SNDK(SanDisk Corporation) 80 2 You invested a total of $12,400 in shares of the three stocks at the given prices, and expected to earn $328 in annual dividends. If you purchased a total of 250 shares, how many shares of each stock did you purchase? WSR shares = HCC shares = SNDK shares =
Brad Dolan, a stockholder of Rhode Corporation, has asked you, the firm's accountant, to explain why his stock warrants were not included in diluted EPS. In order to explain this situation, you must briefly explain what dilutive securities are, why they are included in the EPS calculation, and why some securities are antidilutive and thus not included in this calculation. Rhode Corporation earned $228,000 during the period, when it had an average of 100,000 shares of common stock outstanding. The common stock sold at an average market price of $25 per share during the period. Also outstanding were 30,000 warrants that could be exercised to purchase one share of common stock at $30 per warrant. Instructions Write Mr. Dolan a 1–1.5-page letter explaining why the warrants are not included in the calculation.
The Estrella Corporation purchased 5,000 outstanding shares (which had previously been issued) from its shareholders and paid $250,000.00 for them. Sometime after this transaction, he resold 2,000 shares for $53 per share, then resold another 2,000 shares for $48 per share, and finally resold 1,000 shares for $43 per share. Prepare journal entries for the purchase of outstanding shares and the three sales of treasury shares. You must record each and every transaction in the Treasury Stock Journal. Compose the results of implemented calculations

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