User Account

All Pages

What is her gain-loss relative to selling shares

Assignment Help Accounting Basics
Reference no: EM133070443

Question - Prior to TD 2004/22, Pinder Ltd announces an off-market buyback to its shareholders at $15 per share. Of the $15, $10 was a fully franked dividend and the capital component was $5. The market price for Pinder Ltd is $20 per share. Susan owns one share in Pinder Ltd which she had bought 3 years ago at $10. Pinder Ltd's tax rate is 32% and Susan's personal tax rate is 36%. If Susan decides to participate in the buyback, what is her gain/loss relative to selling shares in the exchange at the market price of $20, based only on the information above?

Reference no: EM133070443

Questions Cloud

Case study-fizek drug co : You are the senior financial analyst for Fizek Drug Co (Fizek). The firm develops, manufactures, and sells drugs and vaccines both in the U.S. and international
What is the standard deviation of the outcome : You have a bet where you win $300 with a probability of 60% and lose $300 with a probability of 40%. What is the standard deviation of the outcome
Modern policing-american law : Describe characteristics that define the "modern" era of policing. Explain criteria that make modern day law enforcement effective.
Investment fund earning average rate of return : For the five-year period ended October 31, 2019, a North American Resource Fund had a compound annual return of 7.99% compared to the average annual five-year r
What is her gain-loss relative to selling shares : Pinder Ltd tax rate is 32% and Susan personal tax rate is 36%. If Susan decides to participate in the buyback, what is her gain/loss relative to selling shares
Current value of the index : Find your expected profit 11 months from now from buying an 11-month forward contract on the stock market index. The current value of the index is 5000, the con
What is funded status of barrel corporation pension plan : The PBO was $920,000 at December 31, Year 6. What is funded status of Barrel Corporation's pension plan at December 31, Year 7
What amount should Robbins record as lease liability : The present value of 1 at: 10% for 10 years is 0.385 and 12% for 10 years is 0.322. What amount should Robbins record as lease liability
3p turbo-cross border investment in brazil case : 1) How do you account for the low interest loan provided by the German vendor in the valuation analysis?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd