Bob invested 3,000 and borrowed 3,000 to purchase shares in Verizon communications. At the time of his investment Verizon was selling for 47 a share. If bob paid a 30 commission how many shares could he buy if he used only his own money and did not use margin?
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- Angel bought $20,375 worth of stock on margin and borrowed $4,651 from his broker. What is the percentage margin in Angel's account?Given that Local Care, Inc.'s stock is currently selling for $65 a share, calculate the amount of money that Elijah Pearson will make (or lose) on each of the following transactions. Assume that all transactions involve 100 shares of stock, and ignore brokerage commissions. Input all answers as positive values. He short-sells the stock and then repurchases the borrowed shares at $85.Total of $ . He buys the stock and then sells it some time later at $85.Total of $ . He short-sells the stock and then repurchases the borrowed shares at $50.Total of $ .Peter Gunderson bought 2,000 shares of stock in a transportation company at $45.10 per share. Ten months later he sold the stock at $78.22 per share. If he had to pay his broker a commission of $85, how much profit did Peter make on this investment? Round your answer to the nearest dollar.
- Mr. Ramon Sy has 100 SMC shares which he bought costing P13,000. He would like to sell his shares registered under his name at a market price of P136/share. His broker executed the order and the transaction was done during the day. His stockbroker charged the minimum stock broker's fee. How much is the realized gains of Mr. Sy? a. P600.00 b. P455.12 c. P405.80 d. P400.00After researching Best Buy common stock, Sally Wang is convinced the stock is overpriced. She contacts her account executive and arranges to sell short 400 shares of Best Buy. At the time of the sale, a share of common stock had a value of $160. Three months later, Best Buy is selling for $152 a share, and Sally instructs her broker to cover her short transaction. Total commissions to buy and sell the stock were $64. What is her profit for this short transaction?After researching Best Buy common stock, Sally Wang is convinced the stock is overpriced. She contacts her account executive and arranges to sell short 200 shares of Best Buy. At the time of the sale, a share of common stock had a value of $140. Three months later, Best Buy is selling for $132 a share, and Sally Instructs her broker to cover her short transaction. Total commissions to buy and sell the stock were $54. What is her profit for this short transaction? Total profit after commissions?
- Lynch joined an investment club when he got his first job at the accounting firm after he passed his CPA exam. The investment club was actually an LLC and the club did really well. After 10 years, his 5% membership interest in Box-Call, LLC was worth $200,000 and his basis was only $40,000. The club only holds marketable securities. Lynch is tired of going to the weekly meetings of the investment club and has arranged a trade of his interest in Box-Call, LLC with a friend for a 50% interest in Live Decoy, LLC, and up and coming wine distillery. The friend's basis in Live Decoy, LLC was $100,000 and it was valued at $200,000. Are there any tax consequences to Lynch?An investor bought 30 shares of the company Facebook at $15 per share, 40 shares of the company Tesla at $18 per share, and 50 shares of the company Amazon at $21. What is the cost of each action?Ted Paulson needed money to pay for unexpected medical bills. To obtain $8,700, he decided to sell some of his shares in the Ridgemoor Capital Appreciation Fund. When he called the investment company, he was told that the following fees would be charged to sell his B shares: Ridgemoor Capital Appreciation Fund Fees First year 5 percent withdrawal fee Second year 4 percent withdrawal fee Third year 3 percent withdrawal fee Fourth year 2 percent withdrawal fee Fifth year 1 percent withdrawal fee If he has owned the fund for 16 months and withdraws $8,700 to pay medical bills, what is the amount of the contingent deferred sales load?
- Anne earned emoluments as a marketing manager with Jabem Chocolate Ltd. Jablem did not have an ESOP plan. In 2008 as a member of the management team she was offered shares in jablem which she could purchase at 50%of their marketable value. She borrowed the money from her credit union and paid for the shares in full. In 2009 jablem paid a dividend which Anne brought to account in her annual return. In 2010 and 2013 Anne received no dividends in respect of the jablem shares. In filling her returns for these years, Anne claimed deductions for the interest paid on the money she had borrowed from her credit union. Discuss whether it is likely that the interest expense will be allowable by the commissioners in the years when no dividends were earned. In your answer make reference to Thwaites v CIT{Jamaica, 1973}; woodroffe v CIT (Grenada, 1966), wharf properties limited v commissioners of inland revenue (Hong Kong 1997).You purchased 155 shares of Willy Wonka Chocolates for $12 per share. Two years later you sell your 155 shares for $23 per share. Did you make or lose money? How much did you make or lose? Explain your results mathematically.You purchased 200 shares of Willy Wonka Chocolates for $20.76 per share. Six months later you sell half your shares for $23.67 per share. A year later you sell the other half for $19.21. Did you make a profit or lose money? How much did you make or lose? Explain your results mathematically.