4. State 2 differences between stocks and bonds. You bought 2000 shares of Canadian Tire at $215each on 30th September 2021. The Face Value of the share is $10. The company paid a 20% cashdividend and 10% stock dividend in 2021. If you sell all your shares today at $189, calculate yourtotal profit/loss under this scenario. (Please show workings when necessary) (2+3=5)

Difference between Stock and Binds. Stock : In stock we will get divided on the face value of the…

Answered: ate 2 differences between stocks and…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

The common shares of Twitter, Incorporated (TWTR) recently traded on the NYSE for $75 per share. You have employee stock options to purchase 1,000 TWTR shares for $80 per share. The options expire in three years. Assume that the annualized volatility of TWTR stock is 65 percent and that the Interest rate is 3 percent (Assume the options are European options that may only be exercised at the maturity date.) a. Is this option a call or a put? O Call O Put b. Using an option pricing calculator such as the one at erleri.com/blackscholes, estimate the value of your TWTR options. Note: Round your Intermediate calculations to 2 decimal places and final answer to nearest whole dollar. Value of your TWTR options c. What is the estimated value of the options if their maturity is six months Instead of three years? Note: Round your Intermediate calculations to 2 decimal places and final answer to nearest whole dollar. Value of the options d. What is the estimated value of the options if their…
ABC Inc. will be in business for only the next 10 years and pays an annual dividend of $2.65 for those ten years? What is the present value of a share of stock for this company if we want a 7% return on the stock? O A. None of the above. B. $18.61 OC. $69.44 O D. $526.96
You own 100 shares of stock that are earning $2 per share per year. According to market analysts, the stock is expected to continue to earn $2 long into the future. Using the annuity rule, and assuming an interest rate of 6.5 percent, it follows that the present value of these 100 shares is: Multiple Choice O O O O $30.77. $307.79. $3,076.92. $30,076.92.
Apisco Tiger Inc. stock is currently selling for $72.00 a share. The stock has a dividend yield of 3.50 percent. How much dividend income will you receive per year if you purchase 500 shares of this stock? Group of answer choices $1,450 $1,170 $921 $1,260 $850
1. The ABV Inc' current stock price is $50.00. The discount rate is 10%. The constant growth rate in dividends per share is 5%. If you buy a share of ABV Inc. at the current market price and hold it for at least 2 years. What do you expect the value of your dividend check to be 2 years from today? A. $1.45 B. $1.80 C. $2.63 D. $2.96 E. $3.25
Q2. On 1 July 2020 Farfalle pc had 5 million £1 ordinary shares in issue. On 1 September2020, Farfelle made a bonus issue of 1 for 2. Its profit after tax for the year ended 30 June 2021 is £3.8m. An ordinary dividend of £1.8m was paid(i) Calculate the earnings for year ended 30 June 2021(ii) Calculate basic EPS for the year ended 30 June 2021 to the nearest pence
1. The ABV Inc' current stock price is $50.00. The discount rate is 10%. The constant growth rate in dividends per share is 5%. If you buy a share of ABV Inc. at the current market price and hold it for at least 2 years. What do you expect the value of your dividend check to be 2 years from today? A. $1.45 B. $1.80 C. $263 D. $2.96 E. $3.25
You purchased 200 shares of preferred stock on January 1 for $14.36 per share. The stock pays an annual dividend of $1.26 per share. On December 31, the market price is $16.69 per share. What is your percent return for the year if you hold on to the stock? The correct answer is 25%. How was that found? Please do not answer in Excel format
25. Assume you purchased 2000 shares of XYZ common stock on margin at $30 per share from your broker. If the initial margin is 70%, what is the interest payment on the amount you borrowed from the broker if interest rate is 9%? $18000 $1620 $42000 $3780
Verizon is scheduled to payout a dividends. The details are below. If I own 100 shares, how much will I receive in dividends. 01/07/2021 CASH $0.627
Please don't image typing answer

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS

ate 2 differences between stocks and bonds. You bought 2000 shares of Canadian Tire at $215 ach on 30th September 2021. The Face Value of the share is $10. The company paid a 20% cash ividend and 10% stock dividend in 2021. If you sell all your shares today at $189, calculate your