User Account

All Pages

Will wilfred have to pay any taxes on the given dividends

Assignment Help Accounting Basics
Reference no: EM131624545

Question: Wilfred Nadeau owns 200 shares of Consolidated Glue. The company's board of directors recently declared a cash dividend of 50 cents a share payable April 18 (a Wednesday) to shareholders of record on March 22 (a Thursday).

a. How much in dividends, if any, will Wilfred receive if he sells his stock on March 20?

b. Assume Wilfred decides to hold on to the stock rather than sell it. If he belongs to the company's dividend reinvestment plan, how many new shares of stock will he receive if the stock is currently trading at $40 and the plan offers a 5% discount on the share price of the stock? (Assume that all of Wilfred's dividends are diverted to the plan.) Will Wilfred have to pay any taxes on these dividends, given that he is taking them in stock rather than cash?

Reference no: EM131624545

Questions Cloud

Define goods and services : When does a court apply common law principles to a contract that involves both goods and services
While the emphasis in finance is on cash flows : The emphasis in accounting is on the determination of accounting income, or net income, while the emphasis in finance is on cash flows.
What is the expected net income for this year : what is the expected net income for ABC this year?
What is the dividend payout ratio : Mountain Rail has a net profit of $750 million. It has 600 million shares outstanding and pays annual dividends of $1.1 per share.
Will wilfred have to pay any taxes on the given dividends : Assume Wilfred decides to hold on to the stock rather than sell it. If he belongs to the company's dividend reinvestment plan.
Discuss jessica independently create identical books : Danielle lives in New York. Jessica lives in Los Angeles. The two have never met, do not share any acquaintances, and are unfamiliar
Lifo and fifo methods : Compute the following under LIFO and FIFO Methods, utilizing the table under PROBLEM 3 at the end of this booklet as a set-up guide.
How many shares would she own afterward : An investor owns some stock in Harry's Pottery Inc. The stock recently underwent a 5-for-3 stock split. If the stock was trading at $40 per share.
How marketing intelligence help drive marketing strategy : How does marketing intelligence (knowledge of your customers wants and needs) help drive marketing strategy?

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