On January 1, 2014, Simon Love's portfolio of 15 common stocks, completely equity- financed, had a market value of $205,000. At the end of May 2014, Simon sold one of the stocks, which had a beginning-of-year value of $13,500, for $21,200. He did not reinvest those or any other funds in the portfolio during the year. He received total dividends from stocks in his portfolio of $9,600 during the year. On December 31, 2014, Simon's portfolio had a market value of $245,000. Find the HPR on Simon's portfolio during the year ended December 31, 2014. (Measure the amount of withdrawn funds at their (beginning-of-year value إختر أحد الخيارات 33.50% A 26.5% B 25.8% .C 34.40% D

On January 1, 2014, Simon Love's portfolio of 15 common stocks, completely equity- financed, had a market value of $205,000. At the end of May 2014, Simon sold one of the stocks, which had a beginning-of-year value of $13,500, for $21,200. He did not reinvest those or any other funds in the portfolio during the year. He received total dividends from stocks in his portfolio of $9,600 during the year. On December 31, 2014, Simon's portfolio had a market value of $245,000. Find the HPR on Simon's portfolio during the year ended December 31, 2014. (Measure the amount of withdrawn funds at their (beginning-of-year value إختر أحد الخيارات 33.50% A 26.5% B 25.8% .C 34.40% D

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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1. In 2018, Brown, Inc., issued $1 par common stock for $28 per share. No other common stock transactions occurred until August 31, 2020, when Brown repurchased some of its issued shares on the open market $23 per share. Brown retired the shares at the time of repurchase. Which of the following correctly describes the effect of the share repurchase and retirement? Group of answer choices a. Additional paid-in capital is decreased. b. Retained earnings is increased. c. 2020 net income is decreased. d. 2020 net income is increased.
The D asenso corp issued 5000 shares of common stock at 100.00 per share. Of this, Eugene owns 500 shares which he acquired at 100 per share. In December, 2013 the corporation declared and paid 25% stock dividend payable in preferred stock. Eugene sold all his stock dividend shares at 120 per share on February 10, 2014. Required: a. Compute the gain or loss on sale of stock dividend shares, assuming that at the time of payment of the stock dividend, the fair market value of the shares of stock are: Common: 110 per share Preferred: 110 per share b. Compute the capital gain due on said sale
June Inc. issued 9,000 nonqualified stock options valued at $27,000 (in total--$3 each). Each option entitles the holder to purchase one share of stock at $5 per share. The options vest over three years - one-third in 2016 (the year of issue), one-third in 2017, and one-third in 2018. Three thousand options are exercised in 2017 at a time when the stock price of the stock is $9. What is the 2017 book-tax difference associated with the stock options (assume ASC 718 applies to the options)? $3,000 favorable $1,500 unfavorable $6,000 favorable $4,500 favorable |
On January 1, 2020, Simon Love's portfolio of 15 common stocks had a market value of $256,000. At the end of May 2020, Simon sold one of the stocks, which had a beginning-of-year value of $26,600, for $31,800. He did not reinvest those or any other funds in the portfolio during the year. He received total dividends from stocks in his portfolio of $11,700 during the year. On December 31, 2020, Simon's portfolio had a market value of $245,000. Find the HPR on Simon's portfolio during the year ended December 31, 2020. (Measure the amount of withdrawn funds at their beginning-of-year value.) C Simon's portfolio HPR during the year ended December 31, 2020, is%. (Round to two decimal places.)
Carlos purchased 2,000 shares of a common stock last June 2017 for Php 3,200,000. In June 2018, he then sold 1,000 shares of the common stock for Php 1,800 per share. The remaining 1,000 shares were finally sold for Php 2,000 per share in June 2019. What was Carlos's internal rate of return (IRR) on this investment? Use spreadsheet solution.
During the fourthquarter of 2018, Rainbarrel, Inc. generated excess cash, which the company invested in equitysecurities as follows:Nov 16 Purchased 1,200 common shares as an investment in equity securities,paying $6 per share. Rainbarrel owns less than 10% of the outstandingstock in the companies in which it invests.Dec 16 Received cash dividend of $0.35 per share on the equity securities.Dec 31 Adjusted the equity securities to fair value of $4 per share.2018Requirements1. Open T-accounts for Cash (including its beginning balance of $23,000), Investment inEquity Securities, Dividend Revenue, and Unrealized Gain (Loss) on Equity Securities.2. Journalize the foregoing transactions and post to the T-accounts.3. Show how to report the short-term investment on Rainbarrel’s balance sheet atDecember 31, 2018.4. Show how to report whatever should appear on Rainbarrel’s income statement for the yearended December 31, 2018.5. Rainbarrel sold the equity securities for $6,000 on January 14,…
Suzy Q buys stock on 1/1/2011 for ____________ per share, paying annual dividends of $27. On 12/31/2011, she sells the stock for $350. Her annual rate of return is -5.75%.
John invested $12,000 in the stock of Hyper Cyber. Eight years later, Hyper Cyber's shares reached $125,000, but John held onto the shares in the belief that their price would double in the next five years. Unfortunately, Hyper Cyber did not double. Rather the market value of John's shares today is $4,000. If the shares were sold today and the proceeds invested in another investment, they would likely earn 5% per annum. Which of the following tems and values is correct? a. $250,000 is the opportunity cost b. $12,000 is the sunk cost C. $2,000 is the opportunity cost d. $125,000 is the opportunity cost of selling the shares today
John invested $12,000 in the stock of Hyper Cyber. Eight years later, Hyper Cyber's shares reached $125,000, but John held onto the shares in the belief that their price would double in the next five years. Unfortunately, Hyper Cyber did not double. Rather the market value of John's shares today is S4,000. f the shares were sold and the proceeds invested in another investment, they would likely earm 5% per annum. Which of the following terms and values is correct? . A. S2000 is the opportunity cost • B. S125,000 is the opportunity cost of selling the shares today • C S250,000 is the opportunity cost • D. $12,000 is a sunk cost
On January 1, 2020, Simon Love's portfolio of 15 common stocks had a market value of $263,000 At the end of May 2020, Simon sold one of the stocks, which had a beginning-of-year value of $26,400, for $31,000. He did not reinvest those or any other funds in the portfolio during the year. He received total dividends from stocks in his portfolio of $12,100 during the year. On December 31, 2020, Simon's portfolio had a market value of $246,000. Find the HPR on Simon's portfolio during the year ended December 31, 2020. (Measure the amount of withdrawn funds at their beginning-of-year value.) Simon's portfolio HPR during the year ended December 31, 2020, is %. (Round to two decimal places.)
Subject:- accounting
In 2016 (year 0), Jessee exercised a stock option by paying $100 per share for 225 shares of ABC stock. The market price at date of exercise was $312 per share. In 2023, Jessee sold the 225 shares for $480 per share. Assuming that Jessee is in the 35 percent tax bracket, has a 15 percent capital gains rate, and uses a 6 percent discount rate, compute the 2016 NPV of the cash flows from the exercise and sale if: (Use Appendix A). Required: a. The stock option was nonqualified. b. The stock option was an ISO. Complete this question by entering your answers in the tabs below. Required A Required B Compute the 2016 NPV of the cash flows from the exercise and sale if the stock option was nonqualified. Note: Round your intermediate calculations to the nearest whole dollar amount. NPV

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