Essays on Capital Gain

Introduction

1. Preparing to sell a residence When selling a residence, one has to do some preparations, such as check the front door and all windows, update the interior, renovate a kitchen and a bath (if needed), check walls and floors, check all electrical fixtures, etc. 2. Pros and cons of hiring a real estate agent There are both advantages and disadvantages of hiring a real estate agent to sell a residence. Possible pros include saving time and energy, avoidance of paperwork, having an expert estimate the price of the residence, no need to coordinate possible reparations, having an expert ...

MEMORANDUM

Dear Sir, This memo is written to address the problems faced by the Big Corp. as a result of the bankruptcy of its subsidiary Sub Corp. the memo discuss the different statutory and regulatory matters applicable in this matter. It also recommends the solution on whether the dividends paid by the company should be treated as a return on capital or ordinary dividends. At first, it is important to understand the basic difference between preferred and ordinary stocks. Preferred shareholders have a preferred claim to the earnings and profits of the company. When the company has excessive cash and ...

Price: 438.31 GBP Date: 4 May 2016

Company profile: Aviva Plc provides insurance, savings, and investment products to over 31 million customers around the world (Aviva, 2016). Aviva is a composite insurance that combines life insurance, general insurance, and asset management (Aviva, 2016). Aviva operates worldwide with its headquarters in London United Kingdom (Yahoo! Finance, 2016).

One-year Price chart:

Figure 1: One-Year Aviva Price Chart

Source: Bloomberg

Price performance: Valuation (by DDM and by comparables):

Analysts’ recommendation:

Introduction 3 Price performance and news analysis 3 News 4 Valuation 5 Multi-stage DDM 5 SML analysis 6 Discussion of pros and cons of the methods used for the above valuation 7 Conclusion 10

Appendix 13

Exhbit1: ...

Introduction

In financial management, the finance managers primarily make several kinds of decisions including investment decisions, financing decisions, routine decisions and dividend decisions. For this case, the paper focusses on dividend decisions. The paper shall evaluate the theoretical framework and empirical evidence that examines the relationship between the firm’s dividend policy and its market share price. Quantitative business analytics refers to application of mathematics and statistics to solve business problem. From the definition, it means that one to define the business problem to solve first then apply the relevant techniques. In this case, the paper hopes to understand the ...

Introduction

Portfolio construction requires effective market analysis that can be done with use of different methods. In that respect, an investor of short term trader can rely on technical or fundamental analysis or even depend on recommendations by the financial market analysts. In that view, this portfolio report presents a summary of the strategies and the sources used in making short trades; mainly targeting one to two day trades. The report begins by providing a summary of the strategies applied and the sources used followed by a comprehensive explanation of the individual trades whose gains are calculated in a separate ...

Qn1

My advice to William job is that there are tax implications for selling the shares at a profit. In the event that the stocks are sold at a profit then William Jobs will incur capital gain tax. In This case the market value of the inheritance of $ 500,000 has a current market value of $550,000 today. The capital gain on the shares is $ 50,000. However, the rate applicable is based on the length of time the shares are held. The sole reason is that it prevents the effect of fluctuation in the market. The taxation of ...

1. Methods to calculate taxable value of fringe benefits: Australian Taxation law allows some benefits to the employees by their employers in the form of different services, benefits, privileges or rights. Under fringe benefits tax act, 1986 the fringe benefit may include cheaper loans to employees by the employer, to allow employees of the company to use Employer’s car, look after medical or legal problems etc. if a person works somewhere for anybody or in a company, the general concept is that the worker will get remuneration in cash but a new concept recognized by Australian taxation law is an agreement ...