Answer:
b. $.66
Explanation:
The computation of the per share value for the one year is
Given that
Current Price = $43
Possible Prices = $42 and $46
Now
u = [($46 - $43) ÷ $43] + 1
= 1.06977
And
d = 1 - [($42 - $43) ÷ $43]
= 0.9767
And,
Risk-Free Rate = T-Bill Rate = Rf = 4.1 %
Now the up move price probability is
= [(1 + Rf) - d] ÷ [u - d]
= [(1.041) - 0.9767] ÷ [1.06977 - 0.9767]
= 0.69088
And,
Exercise Price = $ 45
Now
If the Price is $42, so Payoff = $0
And
if the Price is $46, so Payoff =is
= ($46 - $45)
= $1
Finally the call price is
= [0.69088 × 1 + (1 - 0.69088) × 0] ÷ 1.041
= $0.66367
= $0.66
Store A uses the newsvendor model to manage its inventory. Demand for its product is normally distributed with a mean of 500 and a standard deviation of 300. Store A purchases the product for $10 each unit and sells each for $25. Inventory is salvaged for $5. What is its maximum profit?
a. $10,500
b. $8,500
c. $7,500
d. $6,000
Answer:
c. $7,500
Explanation:
Profit Maximization is a process in which an entity determines the selling price and cost of the product that results in the highest profit.
Use following formula to calculate the maximum profit
Maximum profit = Mean demand x ( Price per unit - Cost per unit )
Where
Mean demand = 500
Price per unit = $25
Cost per unit = $10
Placing values in the formula
Maximum Profit = 500 x ( $25 - $10 )
Maximum Profit = $7,500
a community hospital in pennsylvania has a 15% supply expense ratio. If total operating expenses are $1 million this month, what is the total annual cost of supplies
Answer:
$150,000
Explanation:
The question says that the total operating expenses of the hospital is 1 million, while also saying that it has a supply expense ratio of 15%. An expense ratio can be by dividing a fund's total operating expenses it's average dollar value of its assets under it's management. This is what gave us the 15% we got in the question. Now, to get the total supply cost in dollars (not percentage), all we is multiply the percentage by the total cost we were given. Thus,
Total annual cost of supply =
15% * 1,000,000 =
15/100 * 1,000,000 =
$150,000.
Therefore, the total annual cost of supply is $150,000
Gravel Company reported net income of $4,500,000 in 2021. The weighted average number of common shares outstanding during 2021 was 200,000 shares. Gravel paid $250,000 in dividends on preferred stock, which was convertible into 40,000 shares of common stock. How much is diluted earnings per share for 2021
Answer:
the diluted earning per share is $17.71
Explanation:
The computation of the diluted earning per share is shown below:
Diluted earning per share is
= (Net income - preference dividend) ÷ ( oustanding common stock shares + convertible shares)
= ($4,500,000 - $250,000) ÷ (200,000 + 40,000)
= $4,250,000 ÷ 240,000 shares
= $17.71
hence, the diluted earning per share is $17.71
We simply applied the above formula so that the correct value could come
And, the same is to be considered
If your nominal rate of return is 14.38 percent and your real rate of return is 4.97 percent, what is the inflation rate
Answer:
try 1.35Explanation:
Your storage firm has been offered 100,000 in one year to store some goods for one year. Assume your costs are $95,000, payable immediately, are the cost of capital is 8%. Should you take the contract?
Answer:
We should not take the contract
Explanation:
Net present value = Initial investment + Present value of cash inflows
Net present value = -95000 + 100000/1.08
Net present value = -2407.41
Thus, the contract should not be taken because the NPV is negative
An example of a start of a start up cost
Answer:
what
Explanation:
please write the question properly I can't understand it
Whenever significant expansionary policies are implemented and left in place for at least half a year or more, the likely result is:_____.
Answer:
It starts effecting price level - inflationary pressure in economy.
Explanation:
Expansionary policies are aimed at increasing Aggregate Demand, by Fiscal or monetary approach.
Fiscal expansion policy include increasing government public expenditure, reducing government tax revenue. Monetary Expansion policy aim include credit expansion - from decreased LRR, decreased bank rate, decreased marginal requirement etc
Significant expansion policy left for more than half an year, start exerting inflationary pressure on the economy price level.
Answer:
high inflation or reduced government spending
Explanation:
A $5,000 face value bond has a coupon rate of 6.5%, sells for $5,937, and matures in 7 years. What is its yield to maturity?a. 3.44%.b. 5.47%.c. 6.12%.d. 4.08%.
Answer:
YTM = 0.03495343461 or 3.495343461% rounded off to 3.50%
Explanation:
The yield to maturity or YTM is the yield or return that an investor can earn on the bond if the bond is purchased today and is held till the bond matures. The formula to calculate the Yield to maturity of a bond is as follows,
YTM = [ ( C + (F - P / n)) / (F + P / 2) ]
Where,
C is the coupon payment
F is the Face value of the bond
P is the current value of the bond
n is the number of years to maturity
Assuming that the bond pays coupon annually,
Coupon payment = 5000 * 0.065 = $325
Number of periods remaining till maturity = 7
YTM = [ (325 + (5000 - 5937 / 7)) / (5000 + 5937 / 2)
YTM = 0.03495343461 or 3.495343461% rounded off to 3.50%
The Elkmont Corporation needs to raise $52.5 million to finance its expansion into new markets. The company will sell new shares of equity via a general cash offering to raise the needed funds. If the offer price is $21 per share and the company's underwriters charge a spread of 7.5 percent, how many shares need to be sold?
Answer:
The amount of shares need to sold is
What are the difference between aims and goal
Answer:
Goal is a set target that a person wants to achieve, while Aim is the determined course a person sets to achieve a target.
Earnings of workers are typically decreased by
What was the economy like before the corona virus??
Please help!!
5-8 lines
Answer:
BEFORE the virus, the economy was running (not perfectly) but smoothly. You could go to school without the worry of a death sentence. Marriages were more common before the virus. Concerts were available. You could go out and do things. Bears didn't have to leave the mountains for food. Businesses were running easier.
Explanation:
I hope this helps.
Considering the needs of a global audience is essential to success in the hospitality and tourism industry?
Answer:
True
Explanation:
In simple words, the hospitality and tourism industry refers to the activities related to accommodation, restaurant and tourism etc. In such industries the main focus of the companies is the comfort and joy of their clients. This becomes difficult to implement as every individual have different needs and circumstances. Thus, the planning of activities should be made in such a way that it suited the global audience.
Which of the following choices include only accounts that appear in the asset section of the balance sheet?Multiple Choice Prepaid supplies, unearned revenue, accounts payable Accounts payable, equipment, prepaid insurance Cash, prepaid rent, accounts receivables Common stock, prepaid rent, notes payable
Answer:
C. Cash, prepaid rent, accounts receivables.
Explanation:
A balance sheet can be defined as the financial statement that gives a detailed summary of the financial balance of a business firm or individual at a specific period of time. Therefore, it typically comprises of assets, liabilities, capital, debt, equity etc.
In Financial accounting, Accounts Receivable are considered to be a current asset because it is the payment a business firm would receive from its customers for goods purchased or services taken on credit. Also, cash, rent and accounts receivable are recorded in the current assets section of the balance sheet because they add value to a business firm.
Generally, current assets are considered to be liquid because they are listed on the balance sheet in the order (descending) in which they are expected to turn or be converted to cash within a relatively short term period.
Hence, account receivables, cash and rent are assets on the balance sheet, which are listed in order of liquidity.
The choice that include only accounts that appear in the asset section of the balance sheet are Cash, prepaid rent, and accounts receivables.
Advantages of large group communication ?
Answer:
1: Increased output: The first and most important advantage of group work is, that it increases total productivity
2: More resources :The more member you have in a group, the resources you have at the end of the day...
3: Reliability: Project are safer with team than with individual.
4: proper decision making
5:Exposure to diversity.
Answer:
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Explanation:
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