Bat corporation distributes stock rights with a $20,000 fmv to its common stock shareholders. the $20,000 value of the stock rights at the time of distribution is less than 15% of the value of the underlying stock. which of the following statements is true? a. a shareholder cannot allocate any basis to the rights. b.the holding period for the rights begins on the day the rights are distributed in all cases. c.a shareholder must allocate basis to the rights based on the relative fmvs of the stock and the rights. d.the basis in the rights is zero unless a shareholder makes a valid election to allocate basis to the rights.

Creation landscaping has 1,000 bonds outstanding that are selling for $1,280 each. the company also has 2,000 shares of preferred stock outstanding, currently priced at $27.20 a share. the common stock is priced at $37.00 a share and there are 28,000 shares outstanding. what is the weight of the debt as it relates to the firm's weighted average cost of capital?

You own a nonunion company with 93 nonexempt employees. all of these employ- ees pack books into boxes for shipment to customers throughout the united states. because of wide differences in performance, you have decided to try performance appraisal, something never done before. until now, you have given every worker the same size increase. now you want to measure performance and reward the best performers with bigger increases. without any further information, which of the five types of appraisal formats do you think would be most appropriate? justify your answer. do you anticipate any complaints, or other comments, from employees after you implement your new system?

Walking through the grocery store, ramon sees a "buy 2, get 1 free" deal on laundry detergent. even though he currently has plenty of detergent he decides to take home all three bottles. ramon's decision seems to have been based mostly on his immediate need for the detergent the low price of alternative brands the limited income he presently earns the sale price offered for the detergent