"On June 9th, a customer buys 100 shares of PDQ stock at $26 per share. On June 12th of the same year, the customer sells the stock at $23. On June 30th of the same year, the customer buys PDQ stock at $24. The customer's cost basis in PDQ stock is:"

, $27 per share

Explanation:

GIVEN THE FOLLOWING ;

Original Cost of stock per share = $26

Date purchased = 9th June

12th June, Stock sold at = $23 per share

On 30th June, Repurchasement cost = $24 per share.

Loss on stock = original cost of stock per share - sales price of stock

Loss on stock = $26 - $23 = $3

The customer in this case sold his stock at a loss and repurchases a similar stock within 30 days. This is called a washout sale and in this case, the loss incurred on the sold stock is added to the cost basis of the new stock purchased.

Repurchased price = $24

Loss on sold stock = $3 per share

Therefore, customer cost basis =

$24 + $3 =$27 per share.

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.