9. On Janvory 1,2020, Ever Company purchased 100000 ordinary STures VICompany at P80 per shore. On September 30,2020, Ever received 100.000 stockrights to purchase an addifional 100,000 shares af P90 per share. The stock rightshod an expirotion date of February ).2021. On September30.2020. ABC's shorehad a market value ex-right of Pl14 perstare and fhe stock right had a marketvove of Po.1. What amount should Ever report in its September30.2020 statement.offinancialposiífion as investrment in stock rights?a) 500.0005. 400,000C. 100.000d. 600,000too,000%2. Whatis the total cost of the new invesiment if oll of the stock rights areexercised?0. 1800.000b. 1,600,000C. 2.200.000d. 2A00/000900,000X4

Investment is the allocation and commitment of the funds in order to get some returns. The companies…

9. On JanJary 1,2020, Ever Corfipurny purs Company at P80 per share. On September 30.2020, Ever received 100.000 stock rights to purchase an addifional 100,000 shares af P90 per share. The stock rights had an expirotion date of February 1.2021. On September30.2020. ABC's share had a market value ex-right of Fl14 pershare and the stock right had a market vove of P6. 1. What amount shouid Ever report in its September 30.2020 statement.of financial posifion as investment in stock rights? a) 500.000 b. 400,000 C. 100.000 d. 600,000 /00,000x 2. What is the total cost of the new inestment if oll of the stock rights ore exercised? Q. 1800000 b. 1,600,000 c. 2.200.000 d. 2A00/XX0

9. On JanJary 1,2020, Ever Corfipurny purs Company at P80 per share. On September 30.2020, Ever received 100.000 stock rights to purchase an addifional 100,000 shares af P90 per share. The stock rights had an expirotion date of February 1.2021. On September30.2020. ABC's share had a market value ex-right of Fl14 pershare and the stock right had a market vove of P6. 1. What amount shouid Ever report in its September 30.2020 statement.of financial posifion as investment in stock rights? a) 500.000 b. 400,000 C. 100.000 d. 600,000 /00,000x 2. What is the total cost of the new inestment if oll of the stock rights ore exercised? Q. 1800000 b. 1,600,000 c. 2.200.000 d. 2A00/XX0

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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Concept explainers

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.

Question

9. On Janvory 1,2020, Ever Company purchased 100000 ordinary STures VI
Company at P80 per shore. On September 30,2020, Ever received 100.000 stock
rights to purchase an addifional 100,000 shares af P90 per share. The stock rights
hod an expirotion date of February ).2021. On September30.2020. ABC's shore
had a market value ex-right of Pl14 perstare and fhe stock right had a market
vove of Po.
1. What amount should Ever report in its September30.2020 statement.of
financialposiífion as investrment in stock rights?
a) 500.000
5. 400,000
C. 100.000
d. 600,000
too,000%
2. Whatis the total cost of the new invesiment if oll of the stock rights are
exercised?
0. 1800.000
b. 1,600,000
C. 2.200.000
d. 2A00/000
900,000X4

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XYZ stock price and dividend history are as follows: Beginning-of- $ 104 Year 2018 Year Price 2019 2020 2021 115 90 105 Dividend Paid at Year-End $ 2 2 2 2 An investor buys three shares of XYZ at the beginning of 2018, buys another one shares at the beginning of 2019, sells one share at the beginning of 2020, and sells all three remaining shares at the beginning of 2021. Required: a. What are the arithmetic and geometric average time-weighted rates of return for the investor? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Arithmetic time-weighted average returns Geometric time-weighted average returns % % b-1. Prepare a chart of cash flows for the four dates corresponding to the turns of the year for January 1, 2018, to January 1, 2021. (Negative amounts should be indicated by a minus sign.) Date Cash Flow 01/01/2018 01/01/2019 01/01/2020 01/01/2021
You have been provided with the following information for the year ended 30 June 2022 for ABCLtd:RNet profit for the year -R1 800 000Weighted average number of shares (WANOS) outstanding during the year-R 120 000Average fair value per share -R30.00Weighted average number of shares (WANOS) under option during the year -R25 000Exercise price for shares under option during the year -R28.00REQUIRED:Q.2.1 Explain the purpose and objective of disclosing diluted earnings per share.
Note: RP AND IDR The book I use: Intermediate Accounting, Kieso, ifrs Edition, Fourth Edition Questions in image
XYZ's stock price and dividend history are as follows: Year Beginning-of-Year Price Dividend Paid at Year-End 2019 $ 180 $ 4 2020 200 4 2021 170 4 2022 180 4 An investor buys three shares of XYZ at the beginning of 2019, buys another two shares at the beginning of 2020, sells one share at the beginning of 2021, and sells all four remaining shares at the beginning of 2022. Required: a. What are the arithmetic and geometric average time-weighted rates of return for the investor? (Round your year-by-year rates of return and final answers to 2 decimal places. Do not round other calculations.) b. What is the dollar-weighted rate of return? (Hint: Carefully prepare a chart of cash flows for the four dates corresponding to the turns of the year for January 1, 2019, to January 1, 2022. (Round your answer to 4 decimal places. Negative amount should be indicated by a minus sign.)
On December 31, 2020, Dreamer Company reported as Available-for-sale securities: AT Company, 5,000 shares of common stock (a 1% interest) P 125,000 ITS Company, 10,000 shares of common stock (a 2% interest) 160,000 Two Company, 25,000 shares of common stock (a 10% interest) 700,000 Marketable equity securities, at cost P 985,000 Less: Valuation allowance 50,000 Marketable equity securities, at market P 935,000 Additional information: · On May, 2021, AT Company issued a 10% stock dividend when the market price of its stock was P24 per share. · On November 1, 2021, AT Company paid a cash dividend of P0.75 per share. · On August 5, 2021, ITS Company issued to all shareholders, stock rights on the basis of one right per share. Market prices at date of issue were P13.50 per share (ex-right) of stock and P1.50 per rights. Dreamer Company sold all rights on December 16, 2021 for net proceeds of P18,800. · On July 1, 2021, Dreamer Company paid P1,520,000 for 50,000 additional shares of Two…
Hh1.
12. On January 1.2020. Animosity Compony purchased 50000 shares of another enfify for P3,800,000. On October 1,2020, frie enfify ieceived 50,000 stock rghts Trom the investee. Each right entities the holder to acquire one share for P80. he market price of investee's stiares wos Pi00 mmediafely before fhe rights were- 15Sued and P90 immediotely ofter the rights were issued. On December 1.2020. ihe entity exercised aff stock rights. On Decembe 31,2020, the antity sold 25,000 shares at P90per share. The stock rights are not accounted for separately. If the FIFO approach is used.whatis the gain on sale of investment that should be recognized in 20207 a. 350.000 b. 300,000

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