Answers
Answer:
$3 per bushel of corn
Explanation:
the $3 is at a point of equilibrium, and that price is lower than the $4 which is above the point of equilibrium
\(\Large \boxed{\sf \$ 3.00 \ per \ bushel \ of \ corn}\)
When the market is in equilibrium, a product's price remains constant. The equilibrium point is when the supply and demand curves intersect.
Related Questions
A contestant asks for 200,000 for 25% of their business, what value have they placed on their entire company?
Answers
Answer:
$800,000
Explanation:
25% of the business is equal to 200,000, according to the contestants.
The entire company value is equivalent to 100%
25% = 200,000
100% = ?
100% = 200,000/25 x 100
=$8,000 x 100
=$800,000
Emma's Electronics Incorporated has total assets of $56 and total debt of $43 million. The company also has operating profits of $27 million with interest expenses of $8 million.
Required:
a. What is Emma's debt ratio?
b. What is Emma's times interest earned?
c. Based on the information above, would you recommend to Emma's management that the firm is in a strong enough position to assume more debt and increase interest expense to $10 million?
Answers
Answer:
a. Debt Ratio = Debt / Total Assets
Debt Ratio = $43 million / $56 million
Debt Ratio = 0.76786
Debt Ratio = 76.79%
b. Time Interest Earned = EBIT / Interest
Time Interest Earned = $27 million / $8 million
Time Interest Earned = 3.375 times
c. If Interest expense is increased to 10 lmillion. The new Time Interest Earned = $27 million / $10 million = 2.7 times. The new time Interest Earned is at 3 times and this indicate that the company can easily raise more debt for its funding needs.
Return on Invested Capital (ROIC) is a profitability ratio that measures how effective the firm is at generating a return for investors who have provided capital (bondholders and stockholders). The ROIC calculation answers three questions: How tax efficient is the firm? How effective are the firm’s operations? How intensively does the firm use capital? Comparing the answers to these questions between firms can help you understand why one firm is more profitable than another and where that profitability is coming from.
In the following, Apple’s ROIC is compared to Blackberry’s. The income statement and balance sheet are provided for both firms. While the ROIC calculation for Blackberry is completed below, you have to complete the calculation for Apple by supplying the correct income statement and balance sheet information. As you fill in this information, the components of Apple’s ROIC will be
calculated along with some supporting ratios. Use these subcomponents and supporting ratios to compare Apple and Blacberry’s performance. Where does Apple’s advantage come from?
This activity demonstrates the calculation of ROIC and the comparison of firm performance, supporting Learning Objective 5-1 and 5-2.
Instructions
Use the income statement and balance sheet information for Apple to fill in the missing items in the calculation of Apple’s ROIC and supporting ratios. Once filled in correctly, compare Apple’s performance to that of Blackberry. Where does Apple have an advantage? Where does Blackberry have an advantage?
Apple, Inc. Blackberry
Income Statement YE Sept 2012 YE Mar 2012
Net sales 156,508
Cost of sales 87,846
Gross margin
Research & development expense 3,381
Selling, general & admin expense 10,040
other operating 0
Total operating expenses
Operating margin
Interest & dividend income 0
Interest expense 0
Other Income / Expense 522
Total Other income
Earnings before taxes
Provision for taxes 14,030
Net income (loss)
Short-term marketable securities
Components 0 Inventories 791 Total current assets
Long-term marketable securities
Other assets
18,423
11,848
1,559
2,600
930
0
0
21
354
Balance sheet YE Sept 2014 YE Mar 30 2012
Cash & cash equivalents 10,746 247
Accounts receivable 10,930 0
Finished goods 0 1,027
68,662
13,421
55,241
522
55,763
41,733
6,575
5,089
1,486
21
1,507
1,153
1,527 3,062 0 1,208
2,733
0 2,645
0
Apple Inc Microsoft Corporation
18,383
Other Current Assets 16,803
Fixed Assets: PP&E (net) 15,452 3,927
0 102,959
57,653
176,064
38,542
19,312
7,071
13,731
3,389
0
Long term assets 6,660
Total assets
Accounts payable Deferred revenue
Total current liabilities Long-term debt
Deferred tax liabilities Other long-term liabilities Long-term liabilities
21,175 0
0 0
Accrued expenses 11,414 0
744
other 5,953
Deferred revenue - non-current 0 0
0
Other non-current liabilities 19,312 242
Total long-term liabilities 242
Answers
Here is the ROIC calculation for Apple, Inc.:
The ROIC calculationNet income (loss) $14,030
Interest expense $0
Taxes $14,030
Net operating profit after taxes $28,060
Average invested capital $176,064
Return on invested capital (ROIC) 15.9%
The following table compares Apple's ROIC to that of BlackBerry:
Company | ROIC
------- | --------
Apple | 15.9%
BlackBerry | 4.9%
As you can see, Apple's ROIC is significantly higher than BlackBerry's. This is due to a number of factors, including Apple's higher gross margin, operating margin, and net income.
Apple also has a lower tax rate than BlackBerry, which helps to boost its ROIC.
Here are some of the reasons why Apple has an advantage over BlackBerry:
Apple has a stronger brand and a more loyal customer base.Apple's products are more innovative and user-friendly than BlackBerry's products.Apple has a more efficient supply chain and a more effective marketing strategy.Blackberry does have some advantages over Apple, such as its strong security features and its experience in the enterprise market. However, these advantages are not enough to offset Apple's overall advantages.
Overall, Apple is a more profitable company than BlackBerry. This is due to a number of factors, including Apple's strong brand, innovative products, efficient supply chain, and effective marketing strategy.
Read more about marketing strategy here:
https://brainly.com/question/25640993
#SPJ1
Select the correct answer from each drop-down menu.
Choose the correct business reason from the options provided.
Johanna and her business partners have just purchased the NBA franchise in her hometown. The team's performance has been average and attendance is starting to decline
First, she would need new sources of revenue in order to rebuild the team roster. Since she is facing declining ticket sales, the opportunities for
be limited Under the terms of the purchase, the sellers retired the name of the stadium, which had been named after the person who built it. Johanna sees an immediate
Raising ticket prices may
opportunity in selling the stadium naming rights
Answers
The correct business reason for Johanna to consider would be to sell the stadium naming rights. Johanna and her business partners have just purchased the NBA franchise in her hometown. This means that Johanna would need new sources of revenue to rebuild the team roster and turn the situation around. The correct answer will be to sell the stadium naming rights
Since she is facing declining ticket sales, the opportunities for revenue generation would be limited. This is where selling the stadium naming rights could be a lucrative opportunity for Johanna. The terms of the purchase state that the sellers retired the name of the stadium, which had been named after the person who built it. Therefore, there is an immediate opportunity for Johanna to sell the stadium naming rights.
By selling the stadium naming rights, Johanna would be able to generate new sources of revenue, which could be invested in rebuilding the team roster and improving the team's performance. Additionally, this move could also help in increasing the team's brand visibility and fan engagement. However, it is important for Johanna to carefully evaluate the potential revenue generated from this move against the potential backlash from the fans who may not be happy with the change in the stadium's name. The correct answer will be to sell the stadium naming rights
For more such questions on business partners
https://brainly.com/question/30538677
#SPJ11
seaside cannery, inc., is one of many producers of canned seafood. seaside refuses to sell its products to port harbor restaurant corporation. under antitrust law, this refusal is most likely a per se violation. a violation if its competitors make similar deals. a violation if it thereby acquires monopoly power. not a violation.'
Answers
Seaside cannery, inc., is one of many producers of canned seafood is not a violation of antitrust law.
Hence, Option D is correct.
Antitrust law can be defined as a collection including a largely federal regulations that control how firms operate and are structured in an effort to foster competition and thwart unwarranted monopolies.Three pieces of legislation are the Clayton Antitrust Act, the Federal Trade Commission Act, and the Sherman Antitrust Act which are mostly created the fundamental principles of American antitrust law.Governments create antitrust laws in order to safeguard consumers from unscrupulous company activities and promote fair competition. It helps in commercial practices like market division, bid rigging, price fixing, and monopolies, are subject to antitrust legislation.To know more about Antitrust here
https://brainly.com/question/13800256
#SPJ4
please can someone help me solve this question?
Answers
The activity that Sampson's company most likely excels at is B. Doing things within the company that have been developed through shared values and beliefs.
Why it is important to develop a culture of ethics ?Employees and stakeholders' moral judgment is influenced by a company's culture. Every employee is encouraged to speak and act honestly and ethically by organizations that seek to build a strong ethical culture. Strongly moral businesses draw clients to their goods and services.
Customers are content and confident in their interactions with an honest business. Additionally, ethical businesses keep the majority of their staff members over the long term, which lowers the costs associated with turnover. When they invest in businesses that uphold high ethical standards, investors can rest easy knowing that their money is secure. Good morals prevent takeovers and maintain high share prices.
Companies should therefore endeavor to develop a culture of ethics and one way to do this it to do things in the company that come from a continuous system of shared values and beliefs in the company and its ethical goals.
Find out more on a ethics at https://brainly.com/question/28428744
#SPJ1
One of the most strategies in developing a strong sense of personal responsibility is to what
Answers
Answer:
Take responsibility for your thoughts, feelings, words, and actions.
Explanation:
There are various strategies to take in developing a strong sense of personal responsibility, one of the topmost strategies is to "Take responsibility for your thoughts, feelings, words, and actions."
This will surely help in determining how to react to situations, without being pushed by others or blame others for the outcome.
Also, it will not affect your perception and duty to yourself. But rather spur you to do what you believe in and what will benefit you.
Please help with below question
A bond has $10,000 face value and 10 years to maturity. The bond promises to pay a coupon of $1,000. The bond interest is paid annually. The interest rate for similar bonds is 12%.
Required: Determine the following:
A. What is the bond’s terminal value
B. Determine the coupon rate
C. What is the maturity period
D. What is the yield to maturity
E. Determine the value of the bond
Answers
A. Terminal value: $10,000.
B. Coupon rate: 10%.
C. Maturity period: 10 years.
D. Yield to maturity: Approximately 12%.
E. Bond value: The sum of the present value of coupon payments and the present value of the face value at maturity.
A. The bond's terminal value is equal to its face value, which is $10,000. This represents the amount that the bondholder will receive at maturity.
B. To determine the coupon rate, we divide the annual coupon payment by the face value of the bond and multiply by 100%. In this case, the annual coupon payment is $1,000 and the face value is $10,000.
Coupon Rate = ($1,000 / $10,000) * 100% = 10%
C. The maturity period of the bond is given as 10 years. This means that the bond will reach its full term and the bondholder will receive the face value of $10,000 at the end of the 10-year period.
D. The yield to maturity (YTM) is the total return anticipated on a bond if it is held until it matures. It is the internal rate of return (IRR) of the bond's cash flows. Calculating the YTM requires finding the discount rate that equates the present value of the bond's cash flows to its current market price. In this case, the bond's coupon payments are $1,000 per year for 10 years, and the terminal value is $10,000.
Using a financial calculator or spreadsheet software, we can find that the yield to maturity is approximately 12%.
E. To determine the value of the bond, we need to calculate the present value of the bond's future cash flows. The cash flows consist of the annual coupon payments of $1,000 and the terminal value of $10,000. We discount these cash flows back to the present using the yield to maturity as the discount rate.
Using a financial calculator or spreadsheet software, we can calculate the present value of the cash flows. The value of the bond is the sum of the present values of the coupon payments and the present value of the terminal value.
Assuming a 12% yield to maturity, we find that the value of the bond is approximately $10,000, which is equal to its face value. This indicates that the bond is trading at par value, as the market price matches its face value.
It's important to note that bond valuation can be more complex when considering factors such as market conditions, risk, and different compounding periods for coupon payments. The provided calculation assumes an annual coupon payment and a simple discounting method using the yield to maturity as the discount rate.
For more such questiosn on coupon payments visit:
https://brainly.com/question/30367472
#SPJ8
Choose all that apply.
Select all of the wise recommendations for selecting stock.
Listen to stock tips from friends.
Look at the P/E ratio.
Look at the 52-week high and low.
Find information about the company.
Look at the dividend.
Go with what you know.
Look at the opening price.
Answers
Answer:
Look at P/E ratio
Look at the 52-week high and low.
Find information about the company.
Look at the dividend.
Explanation:
Momma said
Consider the market for labor depicted by the demand and supply curves that follow. Use the calculator to help you answer the following questions. You will not be graded on any changes you make to the calculator. Suppose a senator considers Introducing a bill to legislate a minimum hourly wage of $12.50. Complete the following table with the quantity of labor supplied and demanded if the wage Is set at $12.50. Then Indicate whether this wage will result in a shortage or a surplus. Which of the following statements are true? Check all that apply. In this labor market, a minimum wage of $12.50 would be binding. If the minimum wage were set at $9.50, the market would still be able to reach equilibrium. Binding minimum wages Increase the natural rate of unemployment. In the absence of price controls, a surplus puts upward pressure on wages until they rise to the equilibrium.
Answers
Based on the new wage rate of $12.50, the labor demanded and the labor supplied will be: Labor demanded = 375,000, Labor supplied = 625,000
This would be a labor surplus.
What is labor surplus?Karl Marx created the idea of surplus labor in the nineteenth century to explain the creation of surplus value and profit. It refers to labor that generates value above and above what is required for the worker or workers to survive.
Therefore, there is a labor surplus in the sense that a sizeable segment of the labor force produces less than it needs to, or in other words, its marginal product is below the wage agreed upon through negotiation.
The true responses are:
Binding minimum wages cause structural unemployment.If the minimum wage is set at $12.50, thus the market will not reach equilibrium.In the absence of price controls, a surplus puts downward pressure on wages until they fall to the equilibrium.To learn more about labor
https://brainly.com/question/14348614
#SPj1
What is market environment
Answers
Answer:
The market environment is the combination of external and internal factors that affect a company's ability to establish a relationship with and serve its consumers.
Explanation:
The internal factors relate to the company itself, such as owners, workers, materials, components, etc.
The external factors are divided into macro and micro components. The macro component is the broad environment which includes societal forces that affect society as a whole. The micro component is task-related, which includes factors that influence the production, manufacturing and distribution of a product or service.
What is a public sector wage bill ?
Answers
Answer:
Equal pay for equal work
Answer:
Wage bill (2016/2017)The City of Cambridge is concerned about the number of wild MIT students who will be partying on Halloween and wants to limit the number of parties in order to curb the costs of policing underage drinking and noise violations. The city has asked you to evaluate the welfare implications of policies they are considering. Think of price here as the amount of money party hosts will collect at the door from party-goers. The demand for parties is given by . The supply of parties is given by .
Find the equilibrium price and quantity in the market for Halloween parties.
Answers
Based on the demand and supply functions for the market for Halloween parties attended by MIT students, the equilibrium price is $100 and the quantity is 100.
What are the equilibrium price and quantity for Halloween parties?The equilibrium price and quantity can be found by equating supply and demand.
This gives:
Price = Quantity
Price = 300 - 2p
300 = 3 x Price
Price = 300 / 3
= $100
The quantity would also be 100 parties.
The rest of the question is:
Think of price here as the amount of money party hosts will collect at the door from party-goers. The demand for parties is given by Q =300−2p. The supply of parties is given by Q = p.
Find out more on equilibrium pricing at https://brainly.com/question/22569960.
#SPJ1
First, complete the table below
Answers
A hexagon is a polygon possessing six sides and angles. It exemplifies the traits of a regular polygon, signifying that each of its six sides measures identical lengths, while the measurment of all angled corners comprise an equivalent value (120 degrees per angle).
How to explain the shapeIt should be noted that to determine the area of a regular hexagon with regards to its side length s, refer to this formula: A = (3√3/2) × s^2.
A heptagon consists of seven pointed angles protruding from its center as well as encompassing its circumference using an equal count of respective sides attached to each corner. Such shapes can form in either regular or irregular states, however, only when uniformly oriented are they deemed "regular."
Learn more about hexagon on
https://brainly.com/question/15424654
#SPJ1
Funds that banks lend to borrowers come from
Answers
Yancy Company manufactures luggage sets. Yancy sells its luggage sets to department stores. Yancy expects to sell 2 comma 000 luggage sets for $ 205 each in January and 2 comma 350 luggage sets for $ 205 each in February. All sales are cash only. Prepare the sales budget for January and February.
Answers
Answer:
Sales budget:
January= $410,000
February= $481,750
Explanation:
Giving the following information:
Yancy expects to sell 2,000 luggage sets for $205 each in January and 2,350 luggage sets for $ 205 each in February.
A sales budget is simply multiplying the unitary sales price for the number of units sold.
Sales budget:
January= 2,000*205= $410,000
February= 2,350*205= $481,750
the number of defects after a hotel room cleaning (sheets not straight, smears on mirror, missed debris on carpet, etc) should be measured using what type of control chart?
Answers
Process performance monitoring is made possible by statistical process control (SPC) charts, which are basic graphical tools.
Describe SPC Charts.It is a line graph with the measure on the vertical (y) axis and the time or observation number on the horizontal (x) axis, displaying a measure in chronological sequence.The center line represents the data's average. Additionally, sigma limits are displayed. These limits were determined using a measure of data variation (sigma). If the process is steady and consequently predictable, these limits reveal the range in which we can anticipate the majority of subsequent data points to fall.On the graph, modifications to a process and other helpful annotations are frequently noted so that their effects on the process may be correlated.To Learn more about SPC Charts refer to :
https://brainly.com/question/14267981
#SPJ4
The value of data mining to the business is:
Answers
Answer:
Simple answer. Competitive advantage.
The value of data mining to a business is primarily the ability to find trends and patterns of knowledge from large amounts of data. Hence option C is correct.
By employing data mining techniques, businesses can extract valuable insights and actionable information from their vast datasets, enabling them to make informed decisions and gain a competitive edge.
Data mining algorithms can uncover hidden relationships, identify patterns, and detect anomalies within the data, providing valuable business intelligence. This process allows organizations to understand customer behavior, optimize marketing strategies, improve operational efficiency, and mitigate risks.
While data mining can also facilitate the retrieval of specific information for executive decision-making, its true power lies in its capacity to reveal meaningful patterns and trends that might otherwise remain undiscovered.
Learn more about data mining here
https://brainly.com/question/33467641
#SPJ4
Complete question is as follow:
The value of data mining to the business is:
O a. The ability to find the needle in the haystack.
O b. The ability to find a specific customer name and account number from large amounts of data.
O c. The ability to find trends and patterns of knowledge from large amounts of data.
d. The ability to find the location of information needed for executive decisions.
According to the midpoint method, the price elasticity of demand between points A and B is approximately (0, 0.6, 1.67, 22.5) .
Suppose the price of bikes is currently $100 per bike, shown as point B on the initial graph. Because the demand between points A and B is (elastic, inelastic, unit elastic) , a $25-per-bike increase in price will lead to (decrease, an increase, no change) in total revenue per day.
In general, in order for a price decrease to cause a decrease in total revenue, demand must be (elastic, inelastic, unit elastic) .
Answers
Because the demand between points A and B is inelastic, a $25-per-bike increase in price will lead to an increase, in total revenue per day.
in order for a price decrease to cause a decrease in total revenue, demand must be inelastic.
What is the price elasticity of demand?
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
When the coefficient of elasticity is less than one, it means that demand is inelastic. When demand is inelastic, it means that the quantity demanded is not sensitive to changes in price.
Price elasticity of demand = midpoint change in quantity demanded / midpoint change in price
Midpoint change in quantity demanded = change in quantity demanded / average of both demands
change in quantity demanded = 40 - 35 = 5 Average of both demands = (40 + 35) / 2 = 37.50Midpoint change in quantity demanded = 5 / 37.50 = 0.133Midpoint change in price = change in price / average of both price
Change in price = 100 - 125 = -25Average of both prices = (100 + 125) / 2 = 112.50Midpoint change in price = -25 / 112,50 = -0,222Midpoint elasticity of demand = 0.133 / -0,222 = 0.6
To learn more about price elasticity of demand, please check: https://brainly.com/question/18850846
lead a particular function or a subunit within a function. *
General Manager
Functional Manager
Front-Line Manager
ОСЕО
Answers
Answer:
Functional managers are accountable to manage people with specific skills and different resources within a department or section to meet functional objectives as well as corporate objectives. ... Sometimes, both functional managers and project managers have to work together to share resources and experience.
Explanation:function manager
____ is the production of goods or services within an economy and can include anything from farming, to furniture making, to healthcare services.
Answers
Answer:
I believe it's a market economy.
Explanation:
Customers might sometimes describe contradictory needs
Answers
Customers might sometimes describe contradictory needs which means Option C. Customers sometimes describe needs that oppose each other.
When customers require two different things that cannot be addressed by the same product, it is referred to as a conflicting requirement. There are many reasons why customers may have conflicting needs. Some customers might have a requirement for a product to be both inexpensive and of high quality, for example. Others may desire a product that is both small and powerful. Customers may sometimes find it difficult to articulate what they want, which might result in vague descriptions.
This might make it more difficult for the supplier to provide a solution that satisfies the customer’s needs. Customer service staff must be trained to engage with customers and listen actively to their concerns. They must also be able to identify when there is a contradictory requirement and provide solutions that address the customer's needs in a way that satisfies the customer's expectations while also meeting the supplier's operational needs. Understanding customer needs is an important part of the customer service profession, and it may take some time and effort to develop the necessary skills.
Some customers are very detailed in describing their needs, which can be beneficial for suppliers because it allows them to provide an appropriate solution for the customer. Overall, being aware of conflicting customer requirements is essential in the customer service sector to provide an effective solution. Therefore, the correct option is C.
The question was incomplete, Find the full content below:
Customers might sometimes describe contradictory needs.
A. A customer's needs can sometimes be confusing.
B. Customers might sometimes give vague descriptions.
C. Customers sometimes describe needs that oppose each other.
D. Some customers are extremely thorough in describing their needs.
Know more about Conflicting here:
https://brainly.com/question/2488396
#SPJ8
Record the adjusting entry for uncollectible accounts.
Calculate the effect on net income (before taxes) and total assets in 2024 for each method.
Answers
1. Recording the adjusting entry for uncollectible accounts on December 31 using the Percentage-of-receivables method of Suzuki Company is as follows:
Debit Bad Debts Expense $3,580
Credit Allowance for Uncollectible Accounts $3,580
To record the adjusting entry for uncollectible accounts.2. Recording the adjusting entry for uncollectible accounts on December 31 using the Percentage-of-credit sales method of Suzuki Company is as follows:
Debit Bad Debts Expense $6,220
Credit Allowance for Uncollectible Accounts $6,220
To record the adjusting entry for uncollectible accounts.3. The computation of the effect (reduction) on net income (before taxes) and total assets in 2024 for each method is as follows:
Net Income Total Assets
Percentage-of-receivables method -$3,580 -$4,680
Percentage-of-credit sales method -$6,220 -$7,320
Data and Calculations:Credit Sales for 2024 = $244,000
Accounts Receivable, December 31, 2024 = $39,000
Allowance for Uncollectible Accounts, December 31, 2024 = $1,100 (Credit)
1. Percentage-of-receivables method. Suzuki estimates 12% of receivables will not be collected.
Uncollectible Allowance = $4,680 ($39,000 x 12%)
Adjusting Entry:Bad Debts Expense $3,580 Allowance for Uncollectible Accounts $3,580
2. Percentage-of-credit-sales method. Suzuki estimates 3% of credit sales will not be collected.
Uncollectible Allowance = $7,320 ($244,000 x 3%)
Adjusting Entry:Bad Debts Expense $6,220
Allowance for Uncollectible Accounts $6,220
Learn more about adjusting entries for uncollectible accounts at https://brainly.com/question/22591474
#SPJ1
Question Completion:Suzuki Supply reports the following amounts at the end of 2024 (before adjustment).
Credit Sales for 2024 $244,000
Accounts Receivable, December 31, 2024 39,000
Allowance for Uncollectible Accounts, December 31, 2024 1,100 (Credit)
Required:
1. Record the adjusting entry for uncollectible accounts using the percentage-of-receivables method. Suzuki estimates 12% of receivables will not be collected.
2. Record the adjusting entry for uncollectible accounts using the percentage-of-credit-sales method. Suzuki estimates 3% of credit sales will not be collected.
3. Calculate the effect on net income (before taxes) and total assets in 2024 for each method.
The current price of a certain non-dividend-paying stock is $120.00. The future 2 pri ce is characterized by the following probability distribution:
EVENT PROBABILITY FUTURE PRICE P RETURN R
A 0.18 $180 ?
B 0.09 $108 ?
C 0.3 $90 ?
D 0.25 $81 ?
E ? $225
Calculate [i] the expected future price, [ii] the return in each of the five events, and [iii] Calculate l the expected return. Recall that for a stock which does not pay dividends, return is just ain divided by the initial price. Expected return can be calculated in two ways:
[a]: You could calculate the return to be realized in each of the five events, and then calculate the expected value of the return, or,
[b]: You could calculate the expected price first, and then use the possible fact that:
E(R) = E(P)/Po - 1
Answers
Answer:
Non-Dividend-Paying Stock
i) Calculation of the expected future price:
EVENT PROBABILITY FUTURE PRICE P RETURN R
A 0.18 $180 $32.40
B 0.09 $108 $9.72
C 0.3 $90 $27.00
D 0.25 $81 $20.25
E 0.18 $225 $40.50
Total 1.0 $129.87 $129.87
Future price = the expected returns = $129.87
ii) Calculation of the return in each of the five events:
EVENT PROBABILITY FUTURE PRICE P RETURN R
A 0.18 $180 $32.40
B 0.09 $108 $9.72
C 0.3 $90 $27.00
D 0.25 $81 $20.25
E 0.18 $225 $40.50
iii) Calculation of the expected return:
EVENT PROBABILITY FUTURE PRICE P RETURN R
A 0.18 $180 $32.40
B 0.09 $108 $9.72
C 0.3 $90 $27.00
D 0.25 $81 $20.25
E 0.18 $225 $40.50
Total 1.0 $129.87
Explanation:
a) Data & Calculations:
EVENT PROBABILITY FUTURE PRICE P RETURN R
A 0.18 $180 ?
B 0.09 $108 ?
C 0.3 $90 ?
D 0.25 $81 ?
E ? $225
If stock A does not pay dividend, it will attract capital appreciation which compensates for the unpaid dividends since the company has increased assets over liabilities. When the assets grow more than the liabilities from the reinvestment of the profits, the net value of the business which is the equity increases. This capital growth belongs to the stockholders and is distributable to them in the form of the future price of the stock, which appreciates with the capital growth.
Problem 8, MacroSoft Inc. has capitalized $600,000 of software costs. Sales from this product were $360,000 in the first year. MacroSoft estimates additional revenues of $840,000 over the product’s economic life of 5 years.
Instructions
Prepare the journal entry to record software cost amortization for the first year. Show all computations.
Answers
Journal Entry:
Date: [First year-end date]
The amortization expense for the first year is $120,000.
Debit: Amortization Expense - Software Cost - Year 1 ($600,000 / 5 years) = $120,000Credit: Accumulated Amortization - Software Cost - Year 1 ($600,000 / 5 years) = $120,000Explanation:To record the software cost amortization for the first year, we need to allocate a portion of the capitalized software costs as an expense. Since the software has an estimated economic life of 5 years, we divide the total software cost ($600,000) by 5 to determine the annual amortization expense. In this case, the amortization expense for the first year is $120,000. We debit the Amortization Expense - Software Cost account to recognize the expense and credit the Accumulated Amortization - Software Cost account to accumulate the amortization over time.For more such questions on Journal Entry
https://brainly.com/question/28390337
#SPJ8
Amanda has no credit history. She asks her friend Tricia for advice on how to establish credit history. What is the BEST advice Tricia can give to Amanda?
a) Apply for a home mortgage.
b) Open a bank line of credit.
c) Apply for a gasoline credit card.
d) Actively use a debit card.
Answers
The advice i will give to Amanda is to apply for a gasoline credit card because it will automatically create a credit history for her.
What is Credit history?A Credit history means the overall transaction done relating to use of one's credit card.
Having or obtaining any credit card helps to build a credit base if one do not have a credit history.
Hence, the best advice i will give to Amanda is to apply for a gasoline credit card because it will automatically create a credit history for her.
Therefore, the Option C is correct.
Read more about Credit history
brainly.com/question/9913263
Answer:apply for gasoline credit card
Explanation:
8.
Which of these best describes a statement of financial position?
A.An account proving the books balance
B.A record of closing entries
C.A listing of balances
D.A statement of assets
Answers
Answer:
C. A listing of balances
Explanation:
Balance sheet or statement of financial position is a financial statement that reports all the company's assets and liabilities and equity in a specific accounting period
100 pts
The table identifies how many thousands of units of corn and diamonds the United States and Congo can produce in one week. Use this data to answer the question that follows.
Corn
Diamonds
United States
60
10
Congo
20
5
Which statement is true based on the data table?
The United States should specialize in diamonds and trade for corn.
The United States should specialize in corn and trade for diamonds.
Congo should specialize in corn and trade for diamonds.
Congo should specialize in both corn and in diamonds.
Answers
Answer:
In view of the units of corn and precious stones delivered by the US, the open-door cost of creating corn is B. 10⁄60.
What is the open-door cost of delivering corn?
The open-door cost of delivering corn to the US would be the number of precious stones that are surrendered to make one unit of corn.
This can be found as:
= Units of jewels/Units of corn
= 10/60 jewels
All in all, choice B is right.
Answer:
B) The United States should specialize in corn and trade for diamonds.
Explanation:
I got it right on the test
Can someone answer this pls?:)
Answers
Answer:
Explanation:
Okay assuming each textbox is A,B,C,D,E,F from left to right:
A - 6
B - 5
C - 2
D - 3
E - 4
F - 1
You are attempting to value a call option with an exercise price of $100 and one year to expiration. The underlying stock pays no dividends, its current price is $100, and you believe it has a 50% chance of increasing to $120 and a 50% chance of decreasing to $80. The risk-free rate of interest is 10%.Based upon your assumptions, calculate your estimate of the the call option's value using the two-state stock price model.
Answers
Answer:
$13.64
Explanation:
Given:
Exercise price,X = $100
Current price = $100
Value when price is up, uS = $120
Value when price is down, dS= $80
Risk free interest rate = 10%
First calculate hedge ratio, H:
\( H = \frac{C_u - C_d}{uS - dS} \)
Where,
Cu = uS - X
= 120 - 100
= $20
\( H = \frac{20 - 0}{120 - 80} = \ftac{1}{2}\)
A risk free portfolio involves one share and two call options.
Find cost of portfolio:
Cost of portfolio = Cost of stock - Cost of the two cells.
= $100 - 2C
This portfolio is risk free. The table below shows that
_______________
Portforlio 1:
Buy 1 share $80; Write 2 calls: $0; Total: ($80 + 0) $80
____________________
Portforlio 2:
Buy 1 share: $120; Write 2 calls: -$40; Total: ($120 - $40) $80
Check for oresent value of the portfolio:
Present value \( = \frac{80}{1 + 0.10} = 72.73 \)
Value = exercise price - value of option
$72.73 = $100 - 2C
Find call option, C
\( C = \frac{100 - 72.73}{2} = 13.64 \)
Call option's value = $13.64