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vodomira [7]
2 years ago
10

Maria purchased 100 shares of JAX stock for $30 per share and sold this same stock one year later for $29 per share. She paid co

mmissions of $50 when she purchased the stock and $45 when she sold the stock. Dividends of $2 per share were paid during the year. The capital loss on this stock transaction was​______
a.$100.

b.$145.

c.$150.

d.$195.
Business
1 answer:
ioda2 years ago
5 0

Answer:

Option (d) $195

Explanation:

Data provided in the question:

Number of shares purchased = 100

Price per share = $30

Selling price per share = $29

Commission paid at the time of purchase = $50

Commission paid at the time of sale = $45

Dividend paid = $2 per share

Now,

Total cost of purchasing the shares

= Price of shares + Commission

= ( 100 × $30 ) + $50

= $3000 + $50

= $3050

Revenue from sales

= Selling price of shares - Commission

= ( 100 × $29 ) - $45

= $2900 - $45

= $2855

Therefore,

Capital loss = Total cost of purchasing the shares - Revenue from sales

= $3050 - $2855

= $195

Hence,

Option (d) $195

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Which of the following statements best describes the law of diminishing marginal utility?
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Read 2 more answers
A company had inventory of 5 units at a cost of $20 each on November 1. On November 2, they purchased 10 units at $22 each. On N
VashaNatasha [74]

Answer:

Cost of goods sold=  $410

Explanation:

Giving the following information:

November 1: 5 units for $20 each.

On November 2, they purchased 10 units at $22 each.

On November 6, they purchased 6 units at $25 each.

On November 8, they sold 18 units for $54 each.

The company uses LIFO (last in, first out) as an inventory method.

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5 0
2 years ago
An American-style call option with six months to maturity has a strike price of $35. The underlying stock now sells for $43. The
Travka [436]

Answer:

a) $8

b) $4

c) Decrease

Explanation:

Background.

A call option as you probably know, is an agreement to buy an asset on or before a particular day at a price already determined in the agreement.

a) the Intrinsic value of the option is the market price minus the strike price.

Intrinsic Value = Market Price - Strike price

= $43 - $35

= $8 per share.

It is worthy of note that for an option, of the intrinsic value dips into negative figures it is just said to be 0.

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= Call Premium - Intrinsic value

= $12 - $8

= $4

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8 0
1 year ago
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