Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. one year ago, john doe bought 10,000 shares of gal

One year ago, John Doe bought 10,000 shares of Galaxy Entertainment Company at $50 per...

50.1K

Verified Solution

Question

Accounting

One year ago, John Doe bought 10,000 shares of Galaxy Entertainment Company at $50 per share. His purchase represents 20 percent ownership in the firm. Today s market value per share is $60. If Galaxy Entertainment is bankrupt and owes $200,000 more in debts than the firm can pay after liquidating all of its assets, what is the maximum loss per share John Doe will incur on this investment?

a)$0 a share

b)$20 a share

c)$55 a share, computed as ($50 + 60)/2

d)$50 a share

e)$4 share, computed as (20% $200,000)/10,000 shares

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Make drawings to represent the quantitative structure described in each of the following story problems...

Basic Math
Q

You are evaluating the balance sheet for National Nut Company. From the balance sheet you find...

Finance
Q

1. did we underestimate the age of the gentlemen? please use the data in the spreadsheet...

Statistics
Q

32. When the following reaction is balanced what is the coefficient for -OH? ____N2H4 + ____ClO3- + ____-OH...

Chemistry
Q

Gender in a Children’s Toy Store. 1) Can you detect a boys’ section and a girls’...

Psychology
Q

Describe the structures and processes involved in genetic transmission.

Psychology
Q

Based on your work experience or reading of the chapter, briefly describe how an ERP can...

Accounting
Q

10 Determine whether the integral is convergent or divergent If it is convergent evaluate it...

Calculus
Q

What is the exact value of tan (?/12)?-(2-?3)-(2+?3)2-?32+?3

Calculus
Q

Consider the matrix A below 09 A 3 5 6 Determine the inverse of A...

Algebra
Q

please answer as much as possible tables can be looked up if blurry thank u...

Accounting
Q

P6-8 Page 359 FIFO cost method; cost of production summary Daytona Beverages Inc. uses the...

Accounting