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Rickos Rickos
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6 years ago
M. Camus bought 1000 shares of Oran Co. at $60 per share and 100 shares of Gitane Co. at $40 per share.  Both stocks are now worth $50 per share.  Both companies have offered to repurchase their shares. If M. Camus would like to have about $5,000 in cash, should he sell the Oran or Gitane?
A) Oran, because a tax deduction on the loss will leave him with more than $5,000 and taxes on the capital gain from Gitane would leave him with less than $5,000.
B) Gitane because the price is rising.
C) He should sell equal amounts of each so that his gains cancel out his losses.
D) there is no difference, he makes $5,000 either way.
Textbook 
Financial Management: Principles and Applications

Financial Management: Principles and Applications


Edition: 13th
Authors:
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David_hessDavid_hess
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Rickos Author
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#2
6 years ago
You saved my grade for me. I can't thank you enough.
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