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I have a C Corporation in Texas where I own 51% of stocks.

I have a C Corporation in Texas where I own 51% of stocks. The other 49% are owned by non-resident aliens.I understand that if they have Zero Dividend stocks, they will not have the right to receive any payment if the corporation decides to pay dividends to all stock holders with the common stock.If this is correct, I who owns the other 51% of non Zero Dividend, will be the only that will be receiving any Dividend paymentsIf this is correct, what is the process to convert their common stock they have today to a Zero Dividend stock, and where can I find the forms that will have to be filled during a stockholders meeting where this change of stock type is approved.

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PDtax

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Master's Degree

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I know that installment sale treatment is severely limited

I know that installment sale treatment is severely limited in cases where the parties are related, though what I have read seems mainly to center on depreciable property. What about the sale of the ownership of a corporation by a father to a son? Can the father accept a promissory note payable over a period of years and treat the sale as an installment sale?

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Lev

Retired

Bachelor's Degree Equivalent

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The Private Company that I work its PREFERRED stock

The Private Company that I work for sells its PREFERRED stock to investors at $70. They give me an 100 options of common stock for $20, and they say that they have given me the equivalent of $5000 : ( $70-$20)x100I want to know if this is correct because preferred and comon stock cannot be valued the same...?

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Lev

Retired

Bachelor's Degree Equivalent

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This is a finance questions. How does a PRIVATE company sets

This is a finance questions. How does a PRIVATE company sets a value for its preferred stock when it wants to sell it to investors so that this type of stock represents an equity in the company and at the same time pays a dividend at a certain rate.

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

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LLC, 1120S, 1 shareholder. Cash bais Liquidating..A/R of

LLC, 1120S, 1 shareholder. Cash bais Liquidating..A/R of $25k, services company going out of business...Do I subtract that out of sales so I don't have to claim a bad debt on final 1120S that I'll be filing later this year, to see if some comes in, or do I just take the bad debt on the final 1120?

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

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Stock certificate from XYZ Corporation (Canada) 500,000,000

Stock certificate from XYZ Corporation (Canada)500,000,000 shares common stockPar value $0.0001Stockholder has 3,333 shares of Common Stock transferableHow much is the share or stock certificate worth?

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Rakhi Vasavada

Financial / Legal Advisor

Bachelor's Degree

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Finance-Choices in retirement plan My company has a

Finance-Choices in retirement planMy company has a retirement plan that has recently gone thru some enhancements, for example investing in a Roth account and Roth conversions are now permitted. I have mostly been in fixed income investing and will probably largely continue so…Part 1: Is there any element of additional risk associated with a Roth vs a traditional 401-K. Furthermore should I convert my existing assets to a Roth or leave as a 401K?Part 2 2: this may seem very basic, what is the advantage of retaining the money in the 401 K vs taking it out (I am at an age where I just pay income taxes, no penalty) and investing it somewhere else?Part 3: I need to withdraw an amount of money which is substantial for loan repayments and other commitments. It will be my first withdrawal in 8 yrs. I have been told that doing a loan instead of a withdrawal is the best course because of avoiding taxes and also because I will have my retirement fund back again in a few years (after repayment). Even if anything happens before I repay (unforeseen expenses, employment change) I will have at least replenished some of the funds. Do you agree?Part 4: We are a conservative family and I don't want to run risks in my last career years. Given the turbulence in markets lately, I will probably opt for a mixture of fixed income (e.g. stable value funds or US Treasuries)and US bonds. What could be another vehicle with slightly more risk but with a better return for placing say 20-30 % of assets?Thank you

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Stephen G.

Sr Financial & Tax Consultant

Bachelor's Degree

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If I wanted to purchase Pepsico Dividend Can I do it through

If I wanted to purchase Pepsico for the DividendCan I do it through my Traditional IRAI just retired after 35 years from them, and I'm only 59Fidelity has my IRAIf yes do I still get the benefits of the stock going up also?Is it 7.25% on each share purchased a year?

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Stephen G.

Sr Financial & Tax Consultant

Bachelor's Degree

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Ratio Analysis The Vanguard Group, Inc. has compiled the

Ratio AnalysisThe Vanguard Group, Inc. has compiled the following financial statements and comparative financialratios for the year-end review.Balance SheetVanguard Group, Inc.December 31, 2007AssetsCurrent assetsCash $ 118,750Accounts receivable 296,250Inventory 303,750Total current assets $ 718,750Gross fixed assets $625,000Less: Accumulated depreciation 93,750Net fixed assets 531,250Total assets $1,250,000Liabilities and stockholders' equityCurrent liabilitiesAccounts payable $ 111,250Notes payable 211,250Accruals 108,750Total current liabilities $ 431,250Long-term debt 235,000Total liabilities $ 666,250Stockholders' equityCommon stock 318,750Retained earnings 265,000Total stockholders' equity $ 583,750Total liabilities and stockholders' equity $1,250,000Income StatementVanguard Group, Inc.for the Year Ended December 31, 2007Sales revenue $1,680,000Cost of sales 1,362,480Gross profits $ 317,520Less: Operating expensesSelling expense $ 125,600General and administrative expense 81,600Depreciation expense 24,000Total operating expense $231,200Operating profits $ 86,320Less: Interest expense 15,600Net profits before taxes $ 70,720Less: Taxes (40%) 28,288Net profits after taxes $ 42,432Historical and Industry Average RatiosVanguard Group, Inc.Industry AverageRatio 2005 2006 2007 2007Current ratio 1.6 1.7 — 1.6Quick ratio 0.9 1.0 — 0.9Inventory turnover 6.0 5.0 — 8.4Average collection period 40 days 50 days — 40 daysTotal asset turnover 1.5 1.5 — 1.75Debt ratio 60% 56% — 50%Times interest earned 2.5 3.5 — 4.0Gross profit margin 20% 19.7% — 20%Operating profit margin 4.7% 4.8% — 6%Net profit margin 2.0% 2.3% — 3%Return on investment 3.0% 3.5% — 5.25%Return on equity 7.5% 7.95% — 10.5%1. Calculate the firm's 2007 financial ratios.2. Prepare an executive summary on the firm's overall financial condition and performance. Yoursummary must be at least one page, but no more than 3 pages. Comment on the meaning of eachratio, discussing its trend and its comparison to the industry average.Messineo LLC borrowed $15,000 at a 14% annual rate of interest to be repaid over 3 years. The loan is amortized into three equal annual end of year payments. As the CFO of Messineo, LLC you must prepare a report of the pertinent information in a short summary for the CEO.1. Calculate the annual end of year loan payment amount.2. Prepare a loan amortization schedule showing the interest and principal break down of each of the three loan payments.3. Prepare a one page executive summary for the CEO, Linda Messineo,with the loan payment schedule explaining why the interest portion of each payment declines with the passage of time.Also, be sure to remind her that the interest portion of the loan payment is tax deductible. You should include your spreadsheet as an appendix to your executive summary to prove your figures in the loan payment schedule.Hint: Using a spreadsheet, you will start with the PMT function to calculate the annual payment. Next you will use the IPMT function to find the interest portion for each of the three years.

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PDtax

Owner

Master's Degree

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