9.52% is the company's cost of equity.
What is the cost of equity?The return a company supposedly gives to its professional investors, or shareholders, in order to make up for risks they assume by expanding their business, is referred to as the price of equity. For the a business to function and expand, it needs funding from those other sources.
The information that was given is
the market risk premium is 7.30
the risk-free rate is 2.95
beta of .90
The company's cost of equity is:
= Risk-free rate + Beta(Market risk premium)
= 2.95% + 0.90 (7.30%)
= 2.95/100 + 0.90 (7.30) / 100
= 9.52%
Learn more about the cost of equity, here:
https://brainly.com/question/14041475
#SPJ1
in a bailment, in some circumstances, the dollar amount of liability for any loss or damage to bailed goods can be limited by
In a bailment, in some circumstances, the dollar amount of liability for any loss or damage to bailed goods can be limited by warehouse companies.
A liability to pay money to other human beings or groups in the future is referred to as a liability. this means that the business enterprise will not be capable of make money within the future. A liability is a manner for a enterprise to get cash specific from fairness.
Belongings are items possessed through a business so that it will provide it blessings in destiny. Liabilities are items which can be responsibilities for a commercial enterprise. effect of Depreciation. property are depreciable in nature. Liabilities are non-depreciable in nature.
Learn more about liability here:https://brainly.com/question/25687338
#SPJ4
calculate the price of a 5.2 percent coupon bond with 18 years left to maturity and a market interest rate of 4.6 percent. (assume interest payments are semiannual.) (do not round intermediate calculations. round your final answer to 2 decimal places.)
Calculate the price of a 5.2 percent coupon bond with 18 years left to maturity and a market interest rate of 4.6 percent is 1072.91.
N = 36, FV = 1000, PMT = 26, rate = 2.3%
use PV function in Excel
price of the bond = 1072.91.
A bond may also mature in some months or in some years. Maturity also can have an effect on hobby fee hazard. The longer the bond's maturity, the more the hazard that the bond's fee can be impacted through converting hobby charges previous to maturity, which may also have a bad impact at the charge of the bond.
The YTM is simply a picture of the go back on a bond due to the fact coupon bills can't continually be reinvested on the equal hobby fee. As hobby charges rise, the YTM will increase; as hobby charges fall, the YTM will decrease.When marketplace hobby charges increase, the marketplace fee of an current bond decreases. When marketplace hobby charges decrease, the marketplace fee of an current bond increases. The courting among marketplace hobby charges and the marketplace fee of a bond is known as an inverse courting.
Learn more about interest rate here:
https://brainly.com/question/25816355
#SPJ4
in your opinion, why does a business have a responsibility to employees and community stakeholders in a business- or plant-closing decision
In your opinion, why does a business have a responsibility to employees and community stakeholders in a business- or plant-closing decision “Society is stressful that organizations, each public and private, serve a social purpose,” he wrote in a draft of the letter that became shared with me.
“To prosper over time, each organization ought to now no longer simplest supply economic performance, however, additionally display the way it makes a nice contribution to society. "Social duty method that except maximizing shareholder value, companies have to perform in a manner that advantages society.
Socially accountable organizations have to undertake regulations that sell the wellbeing of society and the surroundings at the same time as lessening bad influences on them. A stakeholder's number one function is to assist an organization meet its strategic targets via way of means of contributing their revel in and angle to a project. They also can offer essential substances and resources. Their help is vital to a a success project.
Learn more about stakeholders here:
https://brainly.com/question/15532995
#SPJ4
kenisha went online to a popular travel site to book her air travel to a conference in dallas and found a banner ad listing recommended hotels in the dallas area. if she booked a room at any of these hotels, the hotel would be required to pay a referral fee or commission to the travel website. this best describes . question content area bottom part 1 a. syndicated selling b. e-wholesaling c. a direct channel d. e-intermediaries e. direct selling
This best describes as Syndicated selling.
A selling syndicate is a collection of underwriters who cooperate to market a securities offering to potential investors. To do this, the organization purchases the securities from the issuer and then sells them. Usually, smaller brokerage firms get sales before selling the assets to individual clients.
When two or more companies collaborate in the same sector, they typically create a syndicate. For instance, two banks might band together to grant a high-risk party a particularly sizable loan. The loan amount would be split between each bank. Then they would split both the gains and the risks, such as a default.
Learn more about syndicated selling here:
https://brainly.com/question/24213544
#SPJ4
you work for a financial institution that lets customers register online. as new customers register, their user data is sent to pub/sub before being ingested into bigquery. for security reasons, you decide to redact your customers' government issued identification number while allowing customer service representatives to view the original values when necessary. what should you do?
Businesses that offer consumers various financial services are known as financial institutions. Institutions of finance could also redact your customers' government issued identification number while allowing customer service representatives.
After using the funds that clients have provided, they provide money to people and organisations that require it. In order to ease transactions in the financial markets, they thereby link savers and spenders. For instance, these companies let borrowers to get loans using the money that savers have set aside. These businesses also assist clients with fund-raising and financial planning.
The facilitation of the purchase and sale of securities like bonds and stocks is included here. In addition to helping consumers manage their money, certain financial institutions also help them protect their assets. For instance, some would provide insurance plans that safeguard homes or automobiles against financial damage.
To know more about Financial institutions visit:
https://brainly.com/question/29630223
#SPJ4
the last two steps of the accounting cycle deal with: answer: a. making journal entries b. closing the books at the end of the fiscal period c. assembling source documents d. analyzing transactions
The last two steps of the accounting cycle deal with closing the books at the end of the fiscal period. Hence option (b) is the answer.
What constitutes the final four steps in the accounting cycle?The accounting cycle is the method used to accept, record, group, and credit payments made and received within a company during a specific accounting period. Although the accounting cycle may appear complex, it is actually rather straightforward. The process consists of four fundamental steps: transaction analysis, transaction recording, adding journal entries to the general ledger, and running an unadjusted trial balance report.
Making closing entries at the conclusion of the accounting period involves settling expenses, revenues, and temporary accounts. In order to do this, temporary accounts like expenses and revenue must be closed out, and the net income must be transferred to long-term accounts like retained earnings.
To learn more about accounting cycle, visit:
https://brainly.com/question/28903376
#SPJ1
f the following, which are actions most closely associated with countercyclical monetary policy? select the two correct answers below. select all that apply:
Interest rates should be kept high during an economic boom. The federal reserve should purchase financial assets from commercial banks when the economy weakens.
What is economic boom?An economic boom is a frequently brief period of fast real GDP growth that lowers unemployment, accelerates inflation, and increases asset prices. A boom happens when the real GDP is growing far more quickly than the projected trend rate of growth, and this might cause the economy to overheat. Booms typically result in an increase in demand-pull and cost-push inflationary pressures, as well as a positive production gap. Economic booms are often not very long-lasting due to the numerous macroeconomic effects they have, not least of which is the upward pressure they have on costs and consumer prices. To curb soaring demand and reduce inflationary pressures, central banks often react by increasing their interest rates for their monetary policies.
To learn more about GDP, visit:
https://brainly.com/question/15682765
#SPJ4
in the opening paragraph, the memo references analysts who have become increasingly critical of large tech firms calling for stronger regulations or even breaking up large companies. what are some concerns expressed by these observers about large firms?
Answer:
That they make it hard for smaller firms to compete.
That they bring about greater income inequality.
That they have an outsized political influence.
Explanation:
As noted in paragraph [4], as industrial concentration and profits have risen, so has income inequality, leading some to see a cause-and-effect relationship between rising income inequality and lax antitrust enforcement. Additionally, as paragraph [2] notes, some observers argue that their large size enables firms to wield excessive political influence, for example, through campaign contributions and lobbying. Finally, some observers argue that mergers that create large firms are anticompetitive, as they make it harder for smaller competitors to survive.
By contrast, few modern-day critics of antitrust enforcement argue that large size and a commanding market share enable firms to charge higher prices. In fact, large tech firms, such as Amazon, tend to charge very low prices.
A business pays weekly salaries of $25,000 on Friday for a five-day week ending on that day. The salaries expense for the year ended Thursday December 31, 2019 to be shown in income statement would be: Select one: O a $25,000 O b. $10,000 O c. $5,000 O d. $20,000 O e. $15,000
For the information provided above, it can be concluded to state that the salaries expense at the end of the year will be $20,000 for a five-day week. Therefore, the option D holds true.
Salaries expense can be referred to or considered as the expenses made by a firm to its employees as a part of their salaries for the work and labor provided. When the weekly salaries expense for a five-day week is $25,000, the daily expense will be $20,000, and thus, the expense at the end of the year on a Thursday, i.e., 4 days will be,
Salaries Expense = Daily Expense x Number of Days
Salaries Expense = 5000 x 4
Salaries Expense = $20,000
Learn more about salaries expense here:
https://brainly.com/question/13679868
#SPJ4
your company makes use of microsoft 365 in their environment. you have been tasked with making sure that members of the global administrators group are protected. the feature you use should achieve this by making use of dynamic risk profiles. which of the following is a feature you should use?
Microsoft 365 is available. the most recent productivity tools, including OneDrive, Word, Excel, PowerPoint, Microsoft Teams, and many others.
installing on Macs, PCs, iPads, and mobile devices.
OneDrive cloud storage of 1 TB.
Upgrades and feature updates not accessible elsewhere.
What is Microsoft 365 ?Microsoft owns the Microsoft 365 product line, which consists of cloud-based services and productivity tools. It includes online services like Outlook.com, OneDrive, and Microsoft Teams, software that was formerly sold under the name Microsoft Office (such as Word, Excel, PowerPoint, and Outlook for Microsoft Windows, macOS, mobile devices, and the web), and enterprise products and services related to these products like Exchange Server, SharePoint, and Yammer. It also covers subscription plans that cover these items, including those that contain subscription-based licenses for desktop and mobile software, hosted email, and intranet services.
To know more about Microsoft 365 visit:
https://brainly.com/question/14984556
#SPJ4
If the required reserve ratio is 10% and the fed conducts an open market purchase of $100, what is the maximum possible change in the money supply?.
The money supply can only fluctuate a maximum of $1,000. The Fed purchases $100 in the open market to meet the 10% necessary reserve ratio.
A reserve ratio exceeding 10%, what does that mean?When the saving rate is 10%, banks are required to retain 10% of their assets as needed reserves. If deposits total $20 million, so $2 million ($15 billion multiplied by. 10) must be kept in reserve. Reserves that are in excess of what is necessary are called excess reserves.
What occurs when the reserve ratio reaches 100%?If the ratio is 100%, the bank would have access to every single customer's funds even if they all asked to withdraw them at once. Even while this kind of banking is obviously incredibly secure, as it has been presented thus far, the banks would merely be serving as a safe. There would be no loans that it could make.
to know more about reserve ratio visit:
https://brainly.com/question/14276095
#SPJ4
what type of transaction do you create to account for depreciation? answer: a. statement charge b. ledger posting c. journal entry d. depreciation post
A statement charge is the type of transaction being created for the purpose of accounting the amounts related to depreciation of an asset. Therefore, the option A holds true.
A depreciation of an organization's assets can be referred to or considered as the reduction in its values due to expected and healthy wear and tear due to usage in the firm over a prolonged period of time. The depreciation is an expense for an organization, and is thus, posted as an expense in the financial statements of the company.
Learn more about depreciation here:
https://brainly.com/question/15085226
#SPJ4
Which of the following is an example of a strategic alliance partnership that uses a network cooperative strategy? a Redbox b. Oneworld ora DowAksa d. Mittercoors
One world or Dow Aksa is an example of a strategic alliance partnership that uses a network cooperative strategy
A strategic alliance is an agreement between two or more parties to collaborate in order to accomplish a certain set of objectives while continuing to run their respective businesses independently. Each member of the alliance believes that the alliance's advantages will outweigh the outcomes of their individual efforts. It is a cooperative or synergistic effort. Common components of alliances include the transfer of technology, economic specialisation, shared costs, and risk sharing. Typically, a formal agency, partnership company, or corporate affiliate arrangement will be superior to a strategic alliance. When two businesses each have one or more corporate assets or talents that will advance the other by advancing their respective sectors, a strategic alliance is often created. Outsourcing relationships that attempt to accomplish long-term objectives
Learn more about alliance from
brainly.com/question/28287869
#SPJ4
If the Federal Reserve increases the spread between the federal funds rate and the discount rate, the cost of being short of reserves _______ and the amount that banks are willing to lend ______.
increases; decreases
If the Federal Reserve increases the spread between the federal funds rate and the discount rate, the cost of being short of reserves increases and the amount that banks are willing to lend decreases.
What is Federal Reserve system?
The Federal Reserve System (FRS) is the nation's central bank. The Federal Reserve, or Fed, is perhaps the most potent financial organization in the world. In order to give the nation a secure, adaptable, and stable financial and monetary system, it was formed. Seven people make up the board of the Federal Reserve. Additionally, there are 12 Federal Reserve banks, each of which has a president who represents a different district.
Conducting national monetary policy, overseeing and regulating banks, preserving financial stability, and offering banking services are among the Fed's primary responsibilities.
To know more about Federal Reserve refer:
https://brainly.com/question/23247429
#SPJ4
What are the economic and political issues raised by having an imbalance between free and slave states?.
Slaves are much less productive that free men and women. This is because the the human method of productivity is thinking.
The first slave was who?As retribution for fleeing his captors in 1640, indentured servant John Punch is referred to by many historians as the first documented slave (or slave for life) in America. It is regarded as one of the first legal instances to distinguish between black and white indentured servants based on race.
How do you define slavery?One person was owned by another in the practice of slavery. The majority of the rights typically enjoyed by free people were denied to slaves, who were regarded by law as chattel, or property.
To know more about Slave visit :
https://brainly.com/question/17214427
#SPJ4
Which managerial style encourages debate and deliberation in order to create an exchange of ideas?.
The goal of the collegeial management style is to foster an exchange of thoughts by promoting discussion and deliberation.
How Do Exchanges Work?The trading of securities, commodities, derivatives, and other financial instruments takes place on an exchange. An exchange's primary duty is to maintain fair and systematic trading as well as effective pricing information distribution for all securities traded there.
What kind of exchange is that?A talk that lasts only a few sentences and is typically tense. There have been a few acrimonious interactions between the two parties. An episode where people shoot weapons or missiles at one other is called an interchange of fire, for instance.
To know more about exchange visit:
https://brainly.com/question/29562028
#SPJ4
three friends split the cost of living together evenly. their rent is $690, and their other expenses total $859.32. how much does each person pay
Each person pays $516.44.
690 + 859.32 = 1549.32
1549.32/3 = 516.44
The price of preserving a particular level of living is known as the cost of living. A cost-of-living index can be used to operationalize changes in the cost of living over time.
Calculations of cost of living are also used to compare how much it costs in various locations to maintain a particular quality of living.
The cost of living is the sum of money required in a certain location and time frame to meet necessities including housing, food, taxes, and medical care.
To evaluate how expensive it is to live in one city against another, the cost of living is frequently utilized. Living expenses are influenced by salaries.
To know more about cost of living, visit:
https://brainly.com/question/28158931
#SPJ4
fedex corp. stock ended the previous year at $118.30 per share. it paid a $1.30 per share dividend last year. it ended last year at $131.70. if you owned 500 shares of fedex, what was your dollar return? select one: a. $14.70 b. $6,700 c. $7,350 d. $6,050
The total dollar return of the stock is $7,350.
What is a stock?A corporation's or company's stock, as used in finance, comprises of all the shares that make up its ownership. Both privately and on stock exchanges, stock can be purchased and sold. Governments often impose strict regulations on these transactions in order to deter fraud, safeguard investors, and advance the general welfare of the economy. In an electronic format, also referred to as a Demat account, the stocks are deposited with the depositories. Existing shareholders' ownership and rights are reduced as a result of a corporation issuing new shares in order to raise money to operate or expand the business. Many businesses provide stock options to employees as part of their remuneration; these options do not reflect ownership but rather the right to purchase ownership at a future date and at a particular price.
Return=14.7 * 500= $7350
To learn more about stock, visit:
https://brainly.com/question/14649952
#SPJ4
hy does a bond's value fluctuate over time? multiple choice question. a bond's par value changes over time the coupon rate and par value are fixed, while market interest rates change the coupon rate varies, while market interest rates are fixed a bond's value does not fluctuate over time
The amount of income generated by a bond's coupon payments in relation to general interest rates affects the bond's price. If market interest rates exceed their coupon rate, bonds lose all of their appeal.
What do you mean by bond's value ?Bond valuation is a technique for calculating the fictitious fair value of a certain bond. Bond valuation entails figuring out the face value or par value of the bond as well as the present value of the bond's future interest payments, sometimes referred to as its cash flow or future value.
Every bond has a face value, also referred to as a par value. This figure represents the bond's future value and is also used to determine the bond's interest payments. It's one of the crucial figures regarding a bond that you should be aware of in order to appreciate its worth as an investment.
To know more about Bond please click here ; https://brainly.com/question/25965295
#SPJ4
given the following information: state of nature profit level probability of occurrence optimistic $683.00 0.1 most likely $103.00 0.6 pessimistic -$519.00 0.3 calculate the variance of the profit levels.
Expected profit=Respective profits*Respective probability
=(683*0.1)+(103*0.6)+(-519*0.3)=(25.60)
probability PRofit probability*(Profit-Expected Value)^2
0.1 683 0.1*(683-(25.6))^2=50211.396
0.6 103 0.6*(103-(25.6))^2=9922.776
0.3 -519 0.3*(-519-(25.6))^2=73033.068
Total=133167.24
Standard deviation=[Total probability*(Profit-Expected Value)^2/Total Probability]^(1/2)
=364.92
Coefficient of variation=Standard deviation/Expected value
=(364.92/-25.6)
which is equal to
=(14.2547)(Approx)(Negative).
Likes: 3Dislikes: 0
Learn more about probability here
https://brainly.com/question/251701
#SPJ4
suppose that the competitive market for rice in japan was suddenly monopolized. the effect of such a change would be
Suppose that the competitive market for rice in japan was suddenly monopolized. the effect of such a change would be: to decrease the consumer surplus of Japanese rice consumers.
What is consumer surplus?Consumer surplus can be defined as the way in which the price that a consumer pay for goods and services is lower that the price they intend to pay.
In a situation where the competitive market for rice in japan was taking control of the impact of this is that it will decrease or lower the consumer surplus of Japanese rice consumers.
Therefore the effect is that consumer surplus will decrease.
Learn more about consumer surplus here:https://brainly.com/question/13573671
#SPJ1
russia and eastern european countries fit in which stage of rostow's five-stage model of economic growth?
Russia and eastern european countries fit in takeoff stage of rostow's five-stage model of economic growth.
What do you know about rostow's five-stage model ?
Rostow wrote his classic Stages of Economic Growth in 1960, which presented five steps that all countries must go through in order to become developed: 1) traditional society, 2) take-off preconditions, 3) take-off, 4) drive to maturity, and 5) high mass consumption age According to the model, all countries exist somewhere along this linear spectrum and progress upward through each stage of development:
Traditional Society: This stage is distinguished by a subsistence, agricultural-based economy characterised by intensive labour.
Prerequisites for Take-Off: At this point, a society begins to develop manufacturing and a more national/international, rather than regional, outlook.
So, The required answer is takeoff stage.
To learn more about rostow's five-stage model :
https://brainly.com/question/9380763
#SPJ4
If a city wanted to increase its urban density, which of the following changes should be implemented?
a. increase the suburban sprawl
b. increase the lot size on new home developments
c. increase the number of single-family homes
d. increase the number of apartments and condos
A city wanted to increase its urban density, increase the number of apartments and condos the changes should be implemented.
What is the city?The term “city” refers to the place of the small population, but all facilities are included. The city is a place located in the geographical center. The city's amenities include parks, infrastructure, and buildings.
As the city grows, the urban areas expand, and a greater number of apartments and condos are built. A condo is similar to an apartment in structure, typically being a unit within a larger residential building, however condos are owned rather than rented.
As a result, the city wanted to increase its urban density, increase the number of apartments and condos the changes should be implemented. Therefore, option (d) is correct.
Learn more about on city, here:
https://brainly.com/question/20326369
#SPJ1
a revenue collection system by which guests pay the cashier, the bartender, or the food or beverage server (who then pays the cashier or the bartender who has cashiering duties).
A revenue collection system by which guests pay the cashier
The key elements that can have an impact on profitability must be given special consideration in order to control a unit's revenue. Therefore, it is crucial to maintain control over the key variables that can impact a business's revenue, such as the menu-beverage list, the overall amount of food, and
beverage sales, the mix of products sold, the average amount spent by customers at various times of the day in each selling outlet, the number of covers served, and the gross profit margins.
It is crucial to keep in mind, especially in commercial operations, that the accountability of what has been delivered to the client must be included someplace in the overall management system.
Learn more about revenue collection system https://brainly.com/question/28133404
#SPJ4
which sustainable marketing principle emphasizes building long-run consumer loyalty and relationships?
A sustainable marketing idea called "sense-of-mission marketing" contends that a corporation should express its mission in broad societal terms as opposed to specifics about its products.
Which sustainable marketing tenet mandates that a business continually seek out genuine product and marketing improvements?Innovative marketing is a sustainable marketing strategy that calls for a business to look for genuine product and marketing advancements. A sustainable marketing theory known as "sense-of-mission marketing" contends that an organization should express its objective in broad societal terms as opposed to specifics about its products.
What characteristics distinguish a sustainable consumer-focused marketing strategy?The promotion of ethically and socially responsible goods, services, and brand values is known as sustainable marketing. If you've ever paid a bit more for something knowing that it was made locally or was fully recyclable.
To know more about sustainable marketing visit:-
https://brainly.com/question/9116837
#SPJ4
One strategy insurance companies have adopted to reduce moral hazard is to require an injured party to pay a _______________ .
A. actuarial fairness
B. a contribution
C. a premium
D. a deductible
One strategy insurance companies have adopted to reduce moral hazard is to require an injured party to pay a deductible.
A method to control your risk is via insurance. If something unfavorable occurs to you, the insurance company compensates you or a person of your choice. If an accident occurs and you don't have insurance, you can be liable for all expenses.
When anything unfortunate occurs, such as a fire, theft, legal action, or automobile accident, insurance acts as a financial safety net, assisting you and your loved ones in recovering. You will obtain an insurance policy—a binding legal agreement between you and your insurance provider—when you acquire insurance.
Hence the correct option D
To know more about Insurance here
https://brainly.com/question/8904989
#SPJ4
the ncreif property index measures the investment performance of real estate by using actual sale prices. group startstrue or falsetrue, unselectedfalse
It is noteworthy to mention that the NCREIF property index is used for the measurement of investment performance of a real estate property only when it has actually been sold. Therefore, the statement given above is true.
The sale of a real estate may be done at a price, which is completely different from that of its actual market value. This difference in the sale is the amount of surplus or deficit that the owner of such property incurs.
An NCREIF index is used for calculating the performance of a real estate property over the historic data, and is based on the sale values of the property(s) in the past.
Learn more about real estate property here:
https://brainly.com/question/17584053
#SPJ4
which of the following would cause short-run aggregate supply to decrease? choose 1 answer: choose 1 answer: (choice a) a an increase in consumption (choice b) b firms anticipate lower in
A decrease in the price level will decrease the short-run aggregate supply only.
What is aggregate supply?The whole supply of products and services produced within an economy at a specific overall price over a specific time period is known as aggregate supply, also known as total output.
Shocks to labor or input cost can also cause the aggregate supply curve to change.
The SRAS curve would shift to the left as a result of the shock of a large number of agricultural crops being destroyed by an unexpected early frost because there would be less agricultural products available at any given price.
How much output companies will produce and at what prices is determined by the interaction between aggregate demand and aggregate supply. Inflation is also determined by it.
Learn more about aggregate supply, here
https://brainly.com/question/29349235
#SPJ1
a.w. phillips collected data on the rate of change in money wages and plotted it against unemployment rates in the united kingdom. the curve he fit to the data showed that a. the rate of change of money wage rates and unemployment rates were inversely related.
Phillips collected data on the rate of change in nominal wages and plotted them against the UK unemployment rate. It shows that there is an inverse proportional relationship.
Higher inflation is associated with lower unemployment and vice versa. The Phillips curve, a concept that guided macroeconomic policy in the 20th century, was challenged by stagflation in the 1970s.
The Phillips curve shows the relationship between inflation and unemployment. When unemployment is low, inflation is high, and when unemployment is high, inflation is low.
Learn more about unemployment here
https://brainly.com/question/22775872
#SPJ4
a firm has a pure discount loan with face value of $75,000 that is due in six months. the assets of the firm are currently worth $96,000. the stockholders in this firm basically own options on the assets of the firm with a strike price of .
HE assets of the firm with a strike price of .call; $50,000
A name alternative gives a proper to its holder to shop for underlying belongings at a predetermined at fee i.e strike fee and date i.e adulthood date. If in adulthood the decision option is not beneficial to its holder then he does not exercise the option.
In the above case, the company's stockholder has personal a call option to shop for its property by way of paying $50,000 i.e strike rate to its lender on the maturity of the mortgage.If on maturity the belongings value of the company is reduced to $50,000 then the stockholder does not exercise the call option and hand over the company's property to the lender.
To Learn About LOANS Click Here -
https://brainly.com/question/27142321
#SPJ4