subject
Business, 16.12.2019 21:31 gimmethemanswers

Yost received 300 noos (each option gives yost the right to purchase 10 shares of cutter corporation stockfor $15 pershare) at the time he started working for cutter corporation three years ago. cutter‘s stock price was $15 per share. yost exercises all of his options when the share price is $26 per share. two years after acquiring the shares, he sold them at$47 per share. a) what are yost‘s taxes due on the grant date, exercise date, and sale date, assuming his ordinary marginal rate is 35percent and his long-term capital gains rate is 15 percent? b) what are cutter corporation's tax consequences (amount of deduction and tax savings from deduction) on the grantdate, the exercise date, and the date yost sells the shares assuming its marginal tax rate is 25 percent? c) assume that yost is "cash poor" and needs to engage in a same-day sale in order to buy his shares. due to his belief thatthe stock price is going to increase significantly, he wants to maintain as many shares as possible. how many shares musthe sell in order to cover his purchase price and taxes payable on the exercise? d) assume that yost's options were exercisable at $20 and expired after five years. if the stock only reached 518 dollarsduring its high point during the five-year period, what are yost’s tax consequences on the grant date. the exercise date. and the date the shares are sold. assuming his ordinary marginal rate is 35 percent and his long-term capital gains rate is15 percent?

ansver
Answers: 2

Another question on Business

question
Business, 21.06.2019 21:00
The plastic flowerpots company has two manufacturing departments, molding and packaging. at the beginning of the month, the molding department has 2,100 units in inventory, 70% complete as to materials. during the month, the molding department started 18,500 units. at the end of the month, the molding department had 3,150 units in ending inventory, 80% complete as to materials. units completed in the molding department are transferred into the packaging department. cost information for the molding department for the month follows: beginning work in process inventory (direct materials) $ 1,300 direct materials added during the month 28,900 using the weighted-average method, compute the molding department's (a) equivalent units of production for materials and (b) cost per equivalent unit of production for materials for the month. (round "cost per equivalent unit of production" to 2 decimal places.)
Answers: 1
question
Business, 22.06.2019 02:30
The cost of capital: introduction the cost of capital: introduction companies issue bonds, preferred stock, and common equity to aise capital to invest in capital budgeting projects. capital is』necessary factor of production and like any other factor, it has a cost. this cost is equal to the select the applicable security. the rates of return that investors require on bonds, preferred stocks, and common equity represent the costs of those securities to the firm. companies estimate the required returns on their securities, calculate a weighted average of the costs of their different types of capital, and use this average cost for capital budgeting purposes. required return on rate: when calculating om operations when the firm's primary financial objective is to select shareholder value. to do this, companies invest in projects that earnselect their cost of capital. so, the cost of capital is often referred to as the -select -select and accruals, which a se spontaneously we hted average cost of capital wa c our concern is with capital that must be provided by select- 쑤 interest-bearing debt preferred stock and common equity. capital budgeting projects are undertaken, are not included as part of total invested capital because they do not come directly from investors. which of the following would be included in the caculation of total invested capital? choose the response that is most correct a. notes payable b. taxes payable c retained earnings d. responses a and c would be included in the calculation of total invested capital. e. none of the above would be included in the cakulation of total invested capital.
Answers: 2
question
Business, 22.06.2019 03:30
He aldermanalderman company has prepared a sales budget of 42 comma 00042,000 finished units for a 3-month period. the company has an inventory of 10 comma 00010,000 units of finished goods on hand at december 31 and has a target finished goods inventory of 11 comma 00011,000 units at the end of the succeeding quarter. it takes 44 gallons of direct materials to make one unit of finished product. the company has inventory of 64 comma 00064,000 gallons of direct materials at december 31 and has a target ending inventory of 53 comma 00053,000 gallons at the end of the succeeding quarter. how many gallons of direct materials should aldermanalderman company purchase during the 3 months ending march 31? select the labels and enter the amounts to calculate the direct materials (gallons) to be purchased.
Answers: 3
question
Business, 22.06.2019 12:30
howard, fine, & howard is an advertising agency. the firm uses an activity-based costing system to allocate overhead costs to its services. information about the firm's activity cost pool rates follows: stooge company was a client of howard, fine, & howard. recently, 7 administrative assistant hours, 3 new ad campaigns, and 8 meeting hours were incurred for the stooge company account. using the activity-based costing system, how much overhead cost would be allocated to the stooge company account?
Answers: 1
You know the right answer?
Yost received 300 noos (each option gives yost the right to purchase 10 shares of cutter corporation...
Questions
question
Mathematics, 24.09.2019 16:30
question
Mathematics, 24.09.2019 16:30
question
Computers and Technology, 24.09.2019 16:30
Questions on the website: 13722361