Answer:
$9.00.
Explanation:
The computation of the value of a put option is shown below:
Data provided in the question
Current price of the stock = $50
Risk free rate = 6%
Strike price = $55
Sale price = $7.20
Based on the above information
The value of put option is
Put = V - P + X exp(-r
t)
= $7.20 - $50 + $55 e
RF - 0.06(1)
= $7.20 - $50 + $51.80
= $9.00
Hence, the value of put option is $9
Answer:
Dr. Investments in Associates 250,000
Cr. Cash 500,000
Dr. Cash 10,000
Cr. Investments in Associates 10,000
Dr. Investments in Associates 50,000
Cr. Investment revenue 50,000
Explanation:
The equity method is a type of accounting used to incorporate investments. It is used when the investor holds significant influence over the investee but does not exercise full control over it.
An investor is deemed to have significant influence over an investee if it owns between 20% to 50% of the investee’s shares or voting rights.
- Jolley receives dividends of $10,000, which is 25% of $40,000, and records a reduction in their investment account. The reason for this is that they have received money from their investee.
- Jolley records the net income from Tige Co. as an increase to its Investment account.
Answer:
$1 or 100% of the tax
Explanation:
When the price elasticity of demand is 0, it means that the good or service will be purchased regardless of its cost. Very few things have such a low price elasticity, and the fact that this is drug for treating cancer is the reason why that happens. Anyone that can purchase a drug that will keep you alive, will do so as long as you have enough money to do so. Another good with a very low price elasticity, but not 0, is gasoline with a 0.02 to 0.04, and gasoline is a basic necessity also.
The curve for a perfectly inelastic good is vertical. So any increase in taxes will be paid by the customers.
Answer:
Reflection activities/tasks
Explanation:
Reflection activities are tasks that makes entrepreneurs look back over what or how they have learned as they progress through the entrepreneurial process. Reflection tasks often assess metacognitive skills, it helps entrepreneurs to arouse their thinking towards taking conscious actions that will improve their decisions.
Answer:
a. Debit Accounts receivable for $600
Explanation:
As Greasy catering company provided services but had not got the bill from the customer, it increases an asset. According to the revenue recognition principle, revenue has recognized whenever it is provided not when the cash is received. In that case, the journal entry to record the transaction is -
Accounts receivable (Debit) $600
Revenue (Catering) (Credit) $600
Accounts receivable is debit because the company owes the amount from the customers.
