Business, 26.03.2020 02:59 ooferson

A corporation with common stock outstanding declares a nontaxable dividend payable in rights to subscribe to common stock on June 30 of the current year. Each right entitles the holder to purchase one share of stock for $90. One right is issued for every share of stock owned. Nexsen owns 100 shares of stock purchased ten years ago for $4,500. At the time of the distribution of the rights, the market value of the common stock is $135 per share, and the market value of the rights is $18 per right. Nexsen receives 100 rights. On September 30, he exercises 75 of the rights and sells the remaining 25 rights for $22 per right. If required, round your answers to two decimal places.

If Nexsen does not allocate his original stock basis to the rights, his basis of the new stock is $ . The holding period of the new stock begins on the date . The sale of the rights produces capital gain of $

Answers: 1

Show answers

Another question on Business

Business, 22.06.2019 14:50

Ann chovies, owner of the perfect pasta pizza parlor, uses 20 pounds of pepperoni each day in preparing pizzas. order costs for pepperoni are $10.00 per order, and carrying costs are 4 cents per pound per day. lead time for each order is three days, and the pepperoni itself costs $3.00 per pound. if she were to order 80 pounds of pepperoni at a time, what would be the average inventory level?

Answers: 3

Answer

Business, 22.06.2019 19:30

Which of the following constitute the types of unemployment occurring at the natural rate of unemployment? a. frictional and cyclical unemployment.b. structural and frictional unemployment.c. cyclical and structural unemployment.d. frictional, structural, and cyclical unemployment.

Answers: 2

Answer

Business, 22.06.2019 19:40

Chang corp. has $375,000 of assets, and it uses only common equity capital (zero debt). its sales for the last year were $595,000, and its net income was $25,000. stockholders recently voted in a new management team that has promised to lower costs and get the return on equity up to 15.0%. what profit margin would the firm need in order to achieve the 15% roe, holding everything else constant? a. 9.45%b. 9.93%c. 10.42%d. 10.94%e. 11.49%

Answers: 2

Answer

Business, 22.06.2019 23:10

Mr. pines is considering buying a house and renting it to students. the yearly operating costs are $1,900. the house can be sold for $175,000 at the end of 10 years and it is considered 18% to be a suitable annual effective interest rate. if the house costs $100,000 to purchase, how much would you need to charge your tenants each year in rent? (assume a single payment for the years rent at the end of each year)

Answers: 1

Answer

You know the right answer?

A corporation with common stock outstanding declares a nontaxable dividend payable in rights to subs...

Questions