Homework Answers
Ans: True, Rational investor wishes to get profit from the investment made in the stock, it can be either through dividend or from gain on selling the stock. It does not make any difference from which way the profit is realized finally
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QUESTION 63 A rational investor would be considered to be indifferent or uncaring if a proft...
The value derived from exercising an option immediately is the exercise value. No rational investor would...
The value derived from exercising an option immediately is the exercise value. No rational investor would exercise an option that is out-of-the-money, so the minimum exercise value is zero. The following table provides information regarding options on ABC Corp. stock. Because the stock’s price is volatile, investors trade options to either hedge their positions or speculate on price movements. Investors can either buy options or “issue” new options, which is called writing options. Consider the case of ABC Corporation: The...
help me please Presented below is information related to Harris, Inc., for the year ended December...
help me please
Presented below is information related to Harris, Inc., for the year ended December 31, 2021: Net sales 1,950,000 Cost of goods sold 1,200,000 Selling expenses 95,000 Administrative expenses 70,000 Dividend revenue 30,000 Interest revenue 20,000 Interest expense 45,000 Loss due to write-off of goodwill due to impairment 75,000 Depreciation expense omitted in 2018 105,000 Dividends declared 120,000 Loss from operations of discontinued component of business 240,000 Gain from disposal of component of business 300,000 Federal tax rate...
1-7 Question 1 1.25 pts Which of the following is not a characteristic of a corporation?...
1-7
Question 1 1.25 pts Which of the following is not a characteristic of a corporation? Limited liability Access to limited amounts of capital Owners are considered stockholders Double taxation Question 2 1.25 pts If 50,000 shares are authorized, 37,000 shares are issued, and 2,000 shares are reacquired, the number of outstanding shares is 37,000. True False Question 3 1.25 pts One of the conditions for paying a cash dividend is formal action by the board of directors. True False...
SHORT ANSWER. (10 Points) Write the word or phrase that best completes each statement or answers...
SHORT ANSWER. (10 Points) Write the word or phrase that best completes each statement or answers the question 11) Earnings per share-basic and diluted Greenwich Corporation had net income of $1,712,500 in 2018. The company had 300,000 shares of $4 par value common stock and 25,000 shares of 8%, s100 par, preferred stock outstanding throughout the year. Each share of preferred stock is both cumulative and convertible. Each share of preferred stock is convertible into four shares of common stock....
41. Depreciation on factory equipment would be reported in the statement of cash flows prepared by...
41. Depreciation on factory equipment would be reported in the statement of cash flows prepared by the indirect method in a. the cash flows from investing activities section. b. a separate schedule. c. the cash flows from operating activities section. d. the cash flows from financing activities section. 42. Which of the following should be added to net income in calculating net cash flow from operating activities using the indirect method? a decrease in accounts receivable preferred dividends declared and...
QUESTION 1 An important disadvantage of the corporate form of ownership is double taxation. True False...
QUESTION 1 An important disadvantage of the corporate form of ownership is double taxation. True False 1 points QUESTION 2 The liability of stockholders is normally limited to their investment in the corporation. True False 1 points QUESTION 3 Authorized shares of common stock require a journal entry to record the information. True False 1 points QUESTION 4 The par value of common stock is usually different from the market value of stock. True False 1 points...
James and Edna Smith are a childless married couple who lived apart for all of 2016....
James and Edna Smith are a childless married couple who lived apart for all of 2016. On December 31, 2016, they were legally separated under a decree of separate maintenance. Which of the following is the only filing status choice available to them for 2016? 1) Married filing joint return. 2) Married filing separate return. 3) Head of household. 4) Single. Question 2 Percy Peterson received a grant from the Department of Education for a special research project on education....
QUESTION 7 A corporation sells property (basis of $175,000) to its sole shareholder for $125,000, the...
QUESTION 7 A corporation sells property (basis of $175,000) to its sole shareholder for $125,000, the fair market value of the property. With respect to the sale, The shareholder has a basis of S175,000 in the property. The corporation has a tax loss of S50,000. The corporation does not recognize a tax loss but reduces its E & P account $50,000. The shareholder has a constructive dividend of $50,000. None of the above QUESTION 8 Assume taxable income is the...
Question 1 Other things remain unchanged, the market demand curve for a particular...
Question 1 Other things remain unchanged, the market demand curve for a particular expected to shift leftwards when the price of that product declines. . True False Question 2 Other things remain equal, which of the following factors causes the market supply curve of Blue-ray players to shift leftwards? The costs of producing a single Blue-ray player increases. The number of firms selling Blue-ray players increases. The sellers are expecting the price of Blue-ray players to decline in the soon future. Non of the above factors causes the...
Which of the following would not require a departure from an unqualified opinion? Question 1 Which...
Which of the following would not require a departure from an
unqualified opinion?
Question 1 Which of the following would not require a departure from an unqualified opinion? Selected Answer: Statement of cash flows not included Answers: Statements are not in conformity with GAAP. Scope limitation. Statement of cash flows not included Related party transactions. Question 2 Which of the following is false regarding materiality and the audit opinion? Selected Answer: The level of materiality is mathematically calculated and therefore...
help me please
Presented below is information related to Harris, Inc., for the year ended December 31, 2021: Net sales 1,950,000 Cost of goods sold 1,200,000 Selling expenses 95,000 Administrative expenses 70,000 Dividend revenue 30,000 Interest revenue 20,000 Interest expense 45,000 Loss due to write-off of goodwill due to impairment 75,000 Depreciation expense omitted in 2018 105,000 Dividends declared 120,000 Loss from operations of discontinued component of business 240,000 Gain from disposal of component of business 300,000 Federal tax rate...
1-7
Question 1 1.25 pts Which of the following is not a characteristic of a corporation? Limited liability Access to limited amounts of capital Owners are considered stockholders Double taxation Question 2 1.25 pts If 50,000 shares are authorized, 37,000 shares are issued, and 2,000 shares are reacquired, the number of outstanding shares is 37,000. True False Question 3 1.25 pts One of the conditions for paying a cash dividend is formal action by the board of directors. True False...
SHORT ANSWER. (10 Points) Write the word or phrase that best completes each statement or answers the question 11) Earnings per share-basic and diluted Greenwich Corporation had net income of $1,712,500 in 2018. The company had 300,000 shares of $4 par value common stock and 25,000 shares of 8%, s100 par, preferred stock outstanding throughout the year. Each share of preferred stock is both cumulative and convertible. Each share of preferred stock is convertible into four shares of common stock....
QUESTION 7 A corporation sells property (basis of $175,000) to its sole shareholder for $125,000, the fair market value of the property. With respect to the sale, The shareholder has a basis of S175,000 in the property. The corporation has a tax loss of S50,000. The corporation does not recognize a tax loss but reduces its E & P account $50,000. The shareholder has a constructive dividend of $50,000. None of the above QUESTION 8 Assume taxable income is the...
Which of the following would not require a departure from an
unqualified opinion?
Question 1 Which of the following would not require a departure from an unqualified opinion? Selected Answer: Statement of cash flows not included Answers: Statements are not in conformity with GAAP. Scope limitation. Statement of cash flows not included Related party transactions. Question 2 Which of the following is false regarding materiality and the audit opinion? Selected Answer: The level of materiality is mathematically calculated and therefore...
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