: An In-The-Money (ITM) option. is an option where the exercise price generates a positive cash flow for the short position. is an option where the exercise price generates a positive cash flow for the long position. generates a positive cash flow when exercised for call options and a negative cash flow when exercised for put options. generates a positive cash flow when exercised for put options and a negative cash flow when exercised for call options.

Poor contract management can lead to an increased risk of financial and reputational losses. This is because contracts are the foundation of most business relationships, and poorly written or mismanaged contracts can lead to a wide range of legal and financial complications.

In addition, poorly managed contracts can lead to poor communication between business partners, which can lead to lost opportunities and damaged relationships. Other potential pitfalls of poor contract management include the inability to enforce contractual obligations, the inability to track contract performance, and the inability to identify contract risks.

Companies that fail to properly manage their contracts may also be exposed to a wide range of other risks, such as regulatory non-compliance, breach of contract, and legal disputes. This can lead to reputational damage and loss of customer confidence, as well as significant financial losses.

To now more about contracts visit:

https://brainly.com/question/32149036

#SPJ11

The nominal GDP of the U.S. in 2012 was approximately $16.2 trillion. This means that the total value of goods and services produced in the U.S. during that year, without adjusting for inflation, was around $16.2 trillion.

Nominal GDP represents the economic output of a country at current prices, without accounting for changes in the price level over time. It reflects the market value of all final goods and services produced within the borders of the country in a given year. The nominal GDP figure provides a snapshot of the overall economic activity and size of the economy during a specific period.

It is important to note that nominal GDP does not provide an accurate measure of economic growth when comparing across different years or adjusting for changes in purchasing power. For such purposes, economists often use real GDP, which adjusts for inflation and provides a more meaningful assessment of economic performance over time.

To learn more about nominal GDP click here

https://brainly.com/question/14810510

#SPJ11

(a) Prepare journal entries for the selected transactions above. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.

Record entries in the order displayed in the problem statement.)The date of purchase of inventory from Encino Company on account for $61,800 is September 1st.Account titleDebitCreditInventory61,800Accounts payable61,800The date of issuing a $61,800, 12-month, 8% note to Encino in payment of the account is October 1st.

Account titleDebitCreditAccounts payable61,800Notes payable61,800[Debt Cash with Interest Rate: $61,800 * 8% * 1/12 = $412]Accounts payable61,800Cash61,388Notes payable412The date of borrowing $61,800 from the Shore Bank by signing a 12-month, zero-interest-bearing $66,160 note is October 1st.Account titleDebitCreditCash61,800Discount on notes payable4,360Notes payable66,160[(face value - amount received) = $66,160 - $61,800 = $4,360]

To know more about journal visit:

https://brainly.com/question/32420859

#SPL11

The net sales of Brigade Paint are $750,000. Answer: B) $750,000.Gross profit margin represents the percentage of revenue or net sales that exceed the cost of goods sold.

It is calculated by dividing gross profit by net sales. If we know the gross profit margin and the cost of goods sold, we can calculate the net sales as follows: Gross profit margin = (Gross profit / Net sales) x 100%We are given that Brigade Paint has a gross profit margin of 40%.We also know that Gross profit = Net sales - Cost of goods sold.

So, we can write:40% = (Net sales - Cost of goods sold) / Net sales. Multiplying both sides by Net sales gives:40% x Net sales = Net sales - Cost of goods sold Distributing gives:40% x Net sales = Net sales - 450,000 Simplifying gives:0.4 Net sales = Net sales - 450,0000.6 Net sales = 450,000Net sales = 450,000 / 0.6  Net sales = $750,000. Therefore, the net sales of Brigade Paint are $750,000. Answer: B) $750,000.

For more such questions on Gross profit

https://brainly.com/question/28390697

#SPJ8

Power is the capacity or ability to direct or influence the behavior of others or the course of events.

The five sources of power include legitimate power, reward power, coercive power, expert power, and referent power.

Legitimate power refers to the influence one possesses due to their position or title.

Reward power refers to the influence one possesses due to their ability to provide incentives for others.

Coercive power refers to the influence one possesses due to their ability to enforce punishments on others.

Expert power refers to the influence one possesses due to their knowledge, expertise, or special skills.

Referent power refers to the influence one possesses due to their ability to attract or charm others.

Due to Syed’s doctoral degree and his subject matter expertise in biomedical science, he exhibits expert power.

As per the scenario given in the question, Daphne works with Syed and Syed is an expert in his field.

Hence, he has the expertise required to direct or influence the behavior of others in the context of biomedical science.

Know more about Power here:

https://brainly.com/question/1634438

#SPJ11

The answer to the given question is that both the March leaders and government officials were concerned about the potential for violence.

Both the March leaders and government officials were concerned about the potential for violence in the March on Washington for Jobs and Freedom. The concern of both parties was that the rally might turn violent and lead to widespread unrest or riots.

A group of civil rights leaders, including Martin Luther King Jr., A. Philip Randolph, John Lewis, Whitney Young, James Farmer, and Roy Wilkins, organized the March on Washington for Jobs and Freedom. The purpose of the March was to push for civil rights and jobs for African Americans in the United States.

Dr. Martin Luther King Jr. delivered his famous "I Have a Dream" speech during the march, which outlined his vision for a future where all Americans would be treated equally, regardless of their race or color.

In addition to speeches and performances, the program for the march included a list of demands, which included an end to segregation, equal access to employment and education, and the passage of a civil rights bill.

The concern of both the March leaders and government officials was that the rally might turn violent and lead to widespread unrest or riots. However, the march was peaceful and is remembered as a turning point in the civil rights movement.

Learn more about Dr. Martin Luther King Jr.: https://brainly.com/question/15213495

#SPJ11

The difference between straight-line depreciation and double-declining balance depreciation in the second year of the asset's life has been asked. The company has bought a new printing machine for $100,010, paid $10,000 for shipping, and paid $5,000 to have it installed in their plant.

The estimated salvage value of the machine is $25,000, and the useful life of the asset is six years. Straight-line depreciation method is a depreciation method in which an asset is depreciated at a uniform rate over the useful life of the asset.

The straight-line depreciation formula is:

Straight-line depreciation = (cost of asset - salvage value) / useful life of asset.

Using the straight-line method, the yearly depreciation expense will be:

($100,010 - $25,000) / 6 = $12,502.

The depreciation expense for the second year will be $12,502.

Double-declining balance (DDB) depreciation method is a depreciation method in which an asset is depreciated at twice the rate of straight-line depreciation.

The double-declining balance formula is:

DDB depreciation = (2 / useful life of asset) * book value at beginning of the year.

Using the double-declining balance method, the yearly depreciation expense will be:

(2 / 6) * $100,010 = $33,336.67.

The depreciation expense for the second year will be

($100,010 - $33,336.67) * (2 / 6) = $22,224.44.

The difference between straight-line depreciation and double-declining balance depreciation in the second year of the asset's life will be:

$22,224.44 - $12,502 = $9,722.44.

Answer: The difference between straight-line depreciation and double-declining balance depreciation in the second year of the asset's life is $9,722.44.

To know more about depreciation visit :

https://brainly.com/question/30531944

#SPJ11

Discretionary fiscal policies refer to the measures taken by the government to control the economy. The government can make use of these policies to stabilize the economy by changing the rate of taxation, spending, and transfer payments. The goal of these policies is to reduce unemployment, boost economic growth and ward off a recession.

These policies are adopted in response to the economic situation and are not automatic like the automatic stabilizers.The correct answer is option D) Automatic stabilizers. Automatic stabilizers are not discretionary policies as they operate automatically based on changes in the economic conditions. Automatic stabilizers are the government expenditures and revenues that vary with changes in the economic activity.

These policies automatically increase the government spending when the economy is in a recession, which helps to reduce the severity of the recession, and they automatically decrease spending when the economy is booming to control inflation.

They do not require legislative approval, and the government does not have to take any further action to activate them. The other options, A, B, C, and E, are examples of discretionary fiscal policy as they require government intervention.

To know more about unemployment visit :

https://brainly.com/question/33438628

#SPJ11

The statement, "When planning our social media strategy, we should first decide about the technology, then define our objectives," is False. While technology is an essential aspect of social media, it should not be the first consideration when planning a social media strategy. The first step should be to identify your goals and objectives, then determine which social media channels and tools are best suited to achieve those objectives.

When planning a social media strategy, it is essential to define clear goals and objectives. The goals and objectives should be specific, measurable, achievable, relevant, and time-bound. Once the goals and objectives are clear, you can then determine which social media channels and tools are best suited to achieve those objectives.

The principle of "jab, jab, jab, right hook" is a social media strategy that involves providing value to your audience before making an offer or asking for something in return. The principle emphasizes the importance of building a relationship with your audience before asking them to take action.

Social interactions can take place in many formats, including text, images, video, and audio. Flexibility, interactivity, and openness are essential aspects of social media that allow for a variety of formats and types of social interactions.

To know more about planning visit:
https://brainly.com/question/32363096

#SPJ11

A short hedge using futures is a risk management strategy where market participants take a short position in futures contracts to offset potential losses in the value of an asset or portfolio; the six-month forward prices are approximately $1712.53 for the stock index and $22.033 for the share.

a) A short hedge using futures is a strategy used by market participants to protect against the potential decline in the value of an asset or portfolio. It involves taking a short position in futures contracts that are based on the same underlying asset as the one being hedged. By doing so, any losses incurred in the cash market can be offset by gains in the futures market, thus reducing the overall risk exposure.

b) To compute the six-month forward prices:

i) For the stock index, the forward price can be calculated using the formula:

Forward Price = Spot Price * e^((r - q) * t)

where r is the risk-free rate and q is the continuous dividend yield.

Forward Price = $1840 * e^((0.02 - 0.07) * 0.5)

Forward Price = $1840 * e^(-0.025)

Forward Price ≈ $1798.85

ii) For the share with a dividend, the forward price can be calculated as:

Forward Price = (Spot Price - Present Value of Dividend) * e^(r * t)

where the Present Value of Dividend is the dividend discounted at the risk-free rate.

Present Value of Dividend = $2 * e^(-0.02 * (2/12))

Forward Price = ($23 - Present Value of Dividend) * e^(0.02 * (2/12))

Forward Price = ($23 - $1.9934) * e^(0.0333)

Forward Price ≈ $23.134

c) The lower bound for the price of a three-month European put option on a non-dividend-paying stock can be determined using the put-call parity relationship. The put option price should be at least equal to the difference between the strike price and the present value of the stock price. In this case:

Lower Bound = Strike Price - (Stock Price * e^(-r * t))

Lower Bound = $385 - ($340 * e^(-0.10 * (3/12)))

Lower Bound ≈ $36.35

d) The marking-to-market process for futures contracts involves the daily settlement of gains and losses. At the end of each trading day, the futures contract is revalued based on the current market price. The difference between the initial price and the new price is settled in cash. If the position has gained value, the profit is credited to the account, and if it has lost value, the loss is debited. This process continues until the contract's expiration or when the position is closed.

e) Futures prices cannot become negative. According to the concept of arbitrage, if the futures price were negative, it would create an opportunity for risk-free profit by simultaneously selling the underlying asset and buying the futures contract. This would lead to market participants exploiting the price discrepancy and driving the futures price back to a non-negative value. This applies to all types of underlying assets, as the absence of negative futures prices is a fundamental principle in financial markets.

To learn more about risk management strategy click here: brainly.com/question/27399555

#SPJ11

A short hedge using futures is a risk management strategy where market participants take a short position in futures contracts to offset potential losses in the value of an asset or portfolio; the six-month forward prices are approximately $1712.53 for the stock index and $22.033 for the share.

a) A short hedge using futures is a strategy used by market participants to protect against the potential decline in the value of an asset or portfolio. It involves taking a short position in futures contracts that are based on the same underlying asset as the one being hedged. By doing so, any losses incurred in the cash market can be offset by gains in the futures market, thus reducing the overall risk exposure.

b) To compute the six-month forward prices:

i) For the stock index, the forward price can be calculated using the formula:

Forward Price = Spot Price * e^((r - q) * t)

where r is the risk-free rate and q is the continuous dividend yield.

Forward Price = $1840 * e^((0.02 - 0.07) * 0.5)

Forward Price = $1840 * e^(-0.025)

Forward Price ≈ $1798.85

ii) For the share with a dividend, the forward price can be calculated as:

Forward Price = (Spot Price - Present Value of Dividend) * e^(r * t)

where the Present Value of Dividend is the dividend discounted at the risk-free rate.

Present Value of Dividend = $2 * e^(-0.02 * (2/12))

Forward Price = ($23 - Present Value of Dividend) * e^(0.02 * (2/12))

Forward Price = ($23 - $1.9934) * e^(0.0333)

Forward Price ≈ $23.134

c) The lower bound for the price of a three-month European put option on a non-dividend-paying stock can be determined using the put-call parity relationship. The put option price should be at least equal to the difference between the strike price and the present value of the stock price. In this case:

Lower Bound = Strike Price - (Stock Price * e^(-r * t))

Lower Bound = $385 - ($340 * e^(-0.10 * (3/12)))

Lower Bound ≈ $36.35

d) The marking-to-market process for futures contracts involves the daily settlement of gains and losses. At the end of each trading day, the futures contract is revalued based on the current market price. The difference between the initial price and the new price is settled in cash. If the position has gained value, the profit is credited to the account, and if it has lost value, the loss is debited. This process continues until the contract's expiration or when the position is closed.

e) Futures prices cannot become negative. According to the concept of arbitrage, if the futures price were negative, it would create an opportunity for risk-free profit by simultaneously selling the underlying asset and buying the futures contract. This would lead to market participants exploiting the price discrepancy and driving the futures price back to a non-negative value. This applies to all types of underlying assets, as the absence of negative futures prices is a fundamental principle in financial markets.

To learn more about risk management strategy click here: brainly.com/question/27399555

#SPJ11

Earnings management is the process of utilizing accounting techniques to improve a company's financial statements by manipulating earnings.

Earnings management might entail tweaking revenue figures, reducing expenses, or both. By doing so, a firm can make its financial performance appear better or worse than it truly is, either to satisfy internal stakeholders (such as company executives) or to impress external stakeholders (such as investors or analysts).

Below are two examples of earnings management:1. Manipulation of Accruals:Accrual accounting is a technique used to record revenue and expenses as they happen, rather than when cash changes hands. Companies that use accrual accounting must use estimates and assumptions to record some transactions that have not yet been completed.

Earnings management can occur if a business intentionally manipulates its accruals by overestimating future revenues or underestimating future costs to improve current earnings.

2. Timing of Expenses:Companies might also use timing tactics to improve their financial statements. One example is to put off spending until the next accounting period, or to shift certain expenditures to different accounts to make them appear less significant.Earnings management may not always be bad.

There are circumstances where it is acceptable. It may be a result of errors in estimates that the company believes will be corrected in the future, or it may be a result of necessary actions taken by the company to restore its profitability. In certain instances, earnings management may also be legal and ethical, and it is frequently used to ensure that the firm complies with regulatory requirements and laws. Earnings management becomes illegal when it involves fraudulent accounting methods, such as recording non-existent transactions or concealing debt or expenses, in order to misrepresent the financial position of the business.

To know more about techniques visit:

https://brainly.com/question/31591173

#SPJ11

The proposal made by Braxton to his friend Mike, expressing his willingness to buy Mike's old car for $4000, fulfills the element of the offer in the formalist theory of contract law.

The proposal made by Braxton to his friend Mike, indicating his willingness to enter a contract to buy Mike's old car for $4000, fulfills the element of the offer in the formalist theory of contract law.

In contract law, an offer is a proposal made by one party (the offeror) to another party (the offeree) expressing their willingness to enter into a legally binding agreement. An offer must contain specific terms and conditions, such as the price, quantity, and subject matter of the contract.

In this scenario, Braxton's proposal to buy Mike's old car for $4000 meets the requirements of an offer. Braxton clearly expresses his willingness to enter into a contract, and he specifies the terms of the agreement, including the price of the car.

It's important to note that for an offer to be valid, it must be communicated to the offeree. In this case, Braxton directly made the proposal to his friend Mike, indicating his intention to buy the car for $4000. By doing so, Braxton fulfills the element of the offer in the formalist theory of contract law.

to know more about contract law here:

brainly.com/question/31340061

#SPJ11

The formula for the Future Value of a single amount is; FV = PV(1 + i)n Where; PV = Present Value i = Interest Rate n = Number of periods FV = Future Value For this problem,

Present Value (PV) = $28,000Future Value (FV) = ?Interest Rate (i) = 8%Number of Periods (n) = 27 years

We know that FV = PV (1 + i)n

Thus, the Future Value (FV) of the $28,000 in 27 years, assuming annual compounding is; FV = $28,000 x (1 + 0.08)27FV = $28,000 x (4.5634)FV = $127,681.20

Therefore, the investment account will be worth $127,681.20 after 27 years if you invest the $28,000 and assume annual compounding at an 8% annual rate of return.

To Know more about investment account

https://brainly.com/question/28935213

#SPJ11

The best market segmentation strategy for a new app targeting vegetarians in Paris would be a combination of demographic and behavioral segmentation.

Demographic Segmentation: The app should primarily target individuals who identify as vegetarians or have a strong interest in vegetarianism. This includes people who follow a vegetarian diet for ethical, health, or environmental reasons.

Additionally, the app can consider age as a demographic factor, as younger individuals are more likely to adopt technology and use mobile apps.

Behavioral Segmentation: The app should focus on the specific needs and preferences of vegetarians in Paris. This includes providing information on vegetarian-friendly restaurants, cafes, and grocery stores in the city, as well as offering customized features like recipe recommendations, food delivery options, and reviews from other vegetarian users.

Targeting individuals who actively seek out vegetarian options and prioritize sustainable and healthy food choices will ensure the app meets the specific requirements of its target market.

By combining these segmentation approaches, the app can tailor its content, features, and marketing efforts to resonate with the unique needs and preferences of vegetarians in Paris. This targeted approach will increase the app's appeal and enhance its chances of success in capturing and retaining its target market.

To learn more about marketing click on,

https://brainly.com/question/30523390

#SPJ4

Net capital spending for 2019 can be calculated by using the formula given below: Net capital spending = (ending net fixed assets − beginning net fixed assets) + Depreciation expense.

Net capital spending can be defined as the difference between net fixed assets of the current year and the previous year along with the depreciation expenses incurred during the current year.

By using the formula given above, we can find the net capital spending of Lucky Charms Breakfast Lover, Inc. in 2019.The net fixed assets of Lucky Charms Breakfast Lover, Inc. in 2019 were 6.1 million and net fixed assets of the firm in 2018 were 5.5 million. Therefore, the change in net fixed assets for the year 2019 is:6.

To know more about capital visit:

https://brainly.com/question/32408251

#SPJ11

Nabil's is planning to purchase a house that costs 270,000.  Nabil's should buy the house since the annual worth of the house is 2,430,000, which is greater than 270,000.

He would only buy the house if the annual worth of the house is 9 per month. Let's compute the annual worth of the house. Determine the monthly interest rate. The monthly interest rate is calculated using the annual interest rate and the number of compounding periods.

Since Nabil's MARR is 6% compounded monthly, the monthly interest rate is:[tex]i = r/m = 6%/12 = 0.5%[/tex]Nabil's is paying for the house over a period of 25 years, which is equal to 12 x 25 = 300 months. From the table of compound interest factors for discrete compounding periods, the annual worth factor is calculated to be 9.0409 using the formula:

[tex]AW,F = ((1 + i)^n * i)/((1 + i)^n - 1) = ((1 + 0.005)^300 * 0.005)/((1 + 0.005)^300 - 1) = 9.0409Step[/tex]

AW = 9 x 270,000 = 2,430,000.

To know more about purchase visit:

https://brainly.com/question/31035675

#SPJ11

Quantitative easing is an example of expansionary monetary policy where the central bank purchases longer-term assets that are not normally purchased from commercial banks.

Quantitative easing (QE) is a monetary policy where a central bank purchases securities, typically longer-term government bonds, from commercial banks and other financial institutions, in order to increase the supply of money and reduce interest rates. This results in an increase in the money supply, which makes it easier for consumers and businesses to borrow money in order to increase spending, which in turn, can help stimulate economic growth.

This is an example of expansionary monetary policy as it helps to expand the money supply. When interest rates are low, banks are more willing to lend, which can lead to increased spending by businesses and consumers. This increased spending can help to stimulate economic growth. Therefore, the central bank purchases longer-term assets that are not normally purchased from commercial banks in order to expand the money supply and increase economic activity.

Learn more about Quantitative easing (QE): https://brainly.com/question/32569162

#SPJ11

The sales taxes payable for Kingbird Supply for March 16 amount to $778.96.

To compute the sales taxes payable, we need to calculate 7% of the total sales for March 16.

Sales total for March 16: $11,128

Sales taxes payable = 7% of sales total

= 0.07 * $11,128

= $778.96

Therefore, the sales taxes payable for Kingbird Supply for March 16 amount to $778.96.

Sales taxes are taxes imposed by the government on the sale of goods and services. They are typically calculated as a percentage of the purchase price and collected by the seller at the time of sale. The collected sales taxes are then remitted to the appropriate government authority.

The specific sales tax rate can vary depending on the jurisdiction. Different states, provinces, or countries may have their own sales tax rates and regulations. For example, in the United States, sales tax rates vary from state to state and can also include additional local sales taxes.

To know more about sales taxes :

https://brainly.com/question/30109497

#SPJ11

The expected return of investment is 9.68% and the volatility of investment is 7.6%.

a. Expected return of investment:

The expected return of investment can be calculated using the formula:

Expected return = Risk-free rate + Beta * (Market return – Risk-free rate)

Here, Beta = (Amount invested in the market / Total amount invested)

Beta = (160,000 / 210,000)

Beta = 0.76

Expected return = 4% + 0.76 * (11% – 4%)

Expected return = 9.68%

Therefore, the expected return of investment is 9.68%.

b. Volatility of investment:

The volatility of investment can be calculated using the formula:

Volatility of investment = Beta * Market volatility

Here, Beta = 0.76

Market volatility = 10%

Volatility of investment = 0.76 * 10%

Volatility of investment = 7.6%

Therefore, the volatility of investment is 7.6%.

To know more about investment visit:

https://brainly.com/question/32453941

#SPJ11

The Average Total Cost (ATC) curve can be useful to firms in that it provides the information about how much the typical unit cost to produce if the total cost was spread out evenly among all units made.

So, the correct option is 4.

The average total cost (ATC) curve demonstrates the cost per unit of the output that a business would have to pay if the total cost was distributed evenly among all of the items that it produces, including variable costs and fixed costs.

In economic theory, the average total cost is the total cost per unit of the output, calculated as total cost divided by the number of goods produced.

By summing up all of the variable and fixed costs associated with producing a good and then dividing by the quantity generated, the ATC is determined.

The ATC represents the production efficiency of a business.

It provides the manufacturer with useful information on the relationship between costs and output, allowing them to make better choices in terms of production volume and price.

To know more about ATC visit:

https://brainly.com/question/32364651

#SPJ11

The answer to this question is option A $1.37. Let the original price of the comic book be 'p'.

The value of the comic book in 2020 would be given by 100 = p(1 + 0.1)^45,

where 45 is the number of years since 1975.

Solving for p, we get:

p = 100 / (1 + 0.1)^45p = 100 / 8.1384p = 12.28

Since the answer options are in dollars, we need to convert p to dollars. Therefore, the original price of the comic book in 1975 was $1.37.

To know more about value visit:

https://brainly.com/question/24503916

#SPJ11

You can start designing your hotel management system app concept.

The process of designing an app concept for a hotel management system on app.moqups.

Step 1: Sign up and log in to app.moqups

Step 2: Create a new project by clicking on the "New Project" button.

Step 3: Choose the type of project you want to create. Since you want to design an app concept, choose "Mobile App."

Step 4: Choose a template for your mobile app. You can either start from scratch or use one of the pre-designed templates.

Step 5: Start designing your hotel management system app concept. You can add various design elements such as buttons, images, and icons to your app. You can also customize the colors, fonts, and other design elements.

Step 6: Once you have finished designing your app concept, you can share it with others by clicking on the "Share" button and copying the link to your project. You can then send the link to others via email or social media.

To know more about the management, visit:

https://brainly.com/question/17640752

#SPJ11

To produce a larger income than option 2, option 1 requires $83,333.33 in sales.

Here are the two pay options:

Option 1: Base salary of $14,000 with a commission of 10%.

Option 2: Base salary of $19,000 with a commission of 4%.

We need to find the amount of sales required for option 1 to produce a larger income than option 2.

Let's first calculate the total income from option 2:

Total Income = Base Salary + Commission

= 19,000 + 0.04 * Sales

We need to set this equal to the total income from option 1 and solve for sales:

14,000 + 0.10 * Sales = 19,000 + 0.04 * Sales

0.06 * Sales = 5,000

Sales = 83,333.33

Therefore, you would need to sell $83,333.33 for option 1 to produce a larger income than option 2.

To learn more about Base salary: https://brainly.com/question/32356552

#SPJ11

a) We have to find the present value of the liability at t = 0. For this, we need to use the formula for present value of a lump sum which is given as:PV = FV / (1 + r)nHere, FV = $1,000,000, r = 1% and n = 15 yearsTherefore, PV = $1,000,000 / (1 + 1%)15 = $670,012.80b) In order to be immunized against changes in interest rates.

the value of the assets at time 0 should be equal to the present value of the liability which is $670,012.80. We can buy a combination of 2 year and 20 year zero coupon bonds to get this value.

Let the amount invested in the 2 year bond be x and the amount invested in the 20 year bond be y. The price of the 2 year bond is given by:Price of 2 year bond = $100 / (1 + 1%)2 = $98.04Therefore, x = ($670,012.80) / (98.04) = $6834.62 (approx)The price of the 20 year bond is given by.

Price of 20 year bond = $100 / (1 + 1%)20 = $55.95Therefore, y = ($670,012.80) / (55.95) = $11,966.88 (approx)Therefore, the portfolio should contain ($6834.62) of 2 year bond and ($11,966.88) of 20 year bond.c) The new interest rate is 1.25%. We need to calculate the approximate and exact change in the value of asset and liability. Let the new price of the 2 year bond be P2 and the new price of the 20 year bond be P20.

To know more about liability visit:

https://brainly.com/question/32761550

#SPJ11

P0 is the current price of the stockD1 is the expected dividend at the end of the year-1D2 is the expected dividend at the end of the year-2P3 the required rate of return g is the growth rate of dividend Substituting the values, we get;

Calculation: In order to calculate the current price of the XL Co., we will use the Dividend Discount Model as follows;

P0 = D1 / (r - g)

Where;P0 is the current price of the stockD1 is the expected dividend at the end of the year-1r is the required rate of return g is the growth rate of dividend.

P3 = D3 * (1 + g2) / (r - g2)

D2 = D1 * (1 + g1) = $3.10 * (1 + 0.20) = $3.72D3 = D2 * (1 + g1) = $3.72 * (1 + 0.20) = $4.46

Now, we can calculate P3:

P3 = D3 * (1 + g2) / (r - g2)= $4.46 * (1 + 0.06) / (0.14 - 0.06)= $56.22

Using Gordon Growth Model, we can find out the price of the stock today:

P0 = D1 / (r - g) + D2 / (r - g)^2 + P3 / (1 + r)^3

Where; P0 is the current price of the stockD1 is the expected dividend at the end of the year-1D2 is the expected dividend at the end of the year-2P3 is the price of the stock at the end of year-3r is the required rate of return g is the growth rate of dividend Substituting the values, we get;

P0 = $3.10 / (0.14 - 0.20) + $3.72 / (0.14 - 0.20)^2 + $56.22 / (1 + 0.14)^3

= $24.54 + $27.09 + $38.72= $90.35

Hence, the current price of the XL Co. stock is $90.35.

To know more about Dividend visit:

https://brainly.com/question/30030205

#SPJ11

To feed the projected population by 2025, food production levels must be doubled. Population growth will lead to an increased demand for food. This increased demand can be met by increasing the production levels of food. Doubling the current food production levels will ensure that there is enough food for the projected population in 2025.In conclusion, doubling the current food production levels will require a multifaceted approach that involves all stakeholders in the food production chain.

To meet the needs of the growing population, it is necessary to ensure that food production levels are increased. This will require a concerted effort by governments, the private sector, and other stakeholders to ensure that farmers have access to the necessary resources to increase food production. These resources include land, water, seeds, fertilizers, and other inputs needed to grow food. In addition, there is a need to ensure that food is produced sustainably, using methods that do not harm the environment and that are resilient to the impacts of climate change.In conclusion, doubling the current food production levels will require a multifaceted approach that involves all stakeholders in the food production chain. This will ensure that there is enough food to feed the projected population in 2025.

To know more about projected population visit:

https://brainly.com/question/6947493

#SPJ11

The Phillips curve is a curve that expresses an inverse relationship between the unemployment rate and the inflation rate. In the short run, the curve is downward sloping, indicating that as the unemployment rate falls, the inflation rate increases, and vice versa.

It is a crucial tool for macroeconomic policymakers to understand the relationship between the two key macroeconomic indicators: unemployment and inflation.The long run Phillips Curve is believed to be vertical, which means that there is no trade-off between inflation and unemployment in the long run. The long-term natural rate of unemployment is the rate of unemployment that corresponds to full employment.

To know more about Phillips visit:

https://brainly.com/question/29382641

#SPJ11

1. Sales on account:
Sales on account are recorded as an increase in accounts receivable and an increase in sales revenue. This means that the accounts receivable balance and the sales revenue balance should be increased by $450,000.
Accounts Receivable  $450,000
Sales Revenue $450,000

2. Collections:
When a company collects on accounts receivable, it decreases the accounts receivable balance and increases cash. In this case, the company collected $490,000.
Cash $490,000
Accounts Receivable $490,000

3. Write-offs of specific customer accounts:
If a company determines that a customer's account is uncollectible, it must write off the amount owed by debiting the allowance for doubtful accounts and crediting accounts receivable.
Allowance for Doubtful Accounts $50,000
Accounts Receivable $50,000

To know more about account visit:

https://brainly.com/question/33477032

#SPJ11

Given, P = 420 – 15 Q Where, P is the price of the amenities Q is the number of amenities used per week The demand function can be rewritten as; Q = 28 – (P/15)

If Tosh purchases the deluxe plan

The deluxe plan offers free access to the fine facilities.

Thus, Tosh will use the fine facilities 2 × 28 = <<2*28=56>>56 times.

If Tosh purchases the basic plan,

For the basic plan, Tosh will pay for each fine amenity at a cost of $45.

Thus,

Q = (14 days) × (1/7 week/day) × 3 amenities/day

Q = 18 fine amenities Tosh will use the fine facilities 18 times.

If Tosh purchases the deluxe plan, the resort will charge Tosh _ dollars more than the basic plan.

Since the resort charges $45 for each amenity, Tosh will pay $0 more for the deluxe plan.

Therefore, there is no additional charge. He only gets free access to the fine amenities.

To know more about amenities visit:

https://brainly.com/question/31556680

#SPJ11

The calculation of the Weighted Average Cost of Capital (WACC) is important for the firm to determine the overall capital cost of the firm.

Here's how to calculate the WACC in three steps, given that Capstone Ltd intends to issue 10-year bonds paying an annual coupon of 9% with a total face value of $40,000,000 and a yield to maturity of 9% p.a. Additionally, the company will issue 1,500,000 shares at a price of $40 per share.

Capstone equity has a beta of 1.22, and the risk-free rate is 2.5%, while the market provides a 10% return.Step 1: Calculate the Cost of Debt For the cost of debt calculation, the formula is:k_d = (Annual Coupon/ Market Price of Bond) × (1- Corporate Tax Rate) Substitute the values and calculate:

To know more about Average visit:

https://brainly.com/question/24057012

#SPJ11