Answer:
The solution of the given query is provided below in the explanation segment.
Explanation:
(a)
The diagram according to the given query is attached below.
(b)
Given:
Investor sells,
= 200 shares
at,
= $5.25
Strike price,
= $5
Premium,
= $0.50
If the price is less than $5 is $.75 per share,
The investor's gain will be:
= 
=
($)
(c)
The investor would earn under $5.25 upon expiry, as longer as the spot price becomes less.
Answer:
B. In a single payment, and the collateral is returned
<u>Multiple-choices</u>
A. In multiple payments, and collateral is retuned
B. In a single payment, and the collateral is returned.
C. The lender sells the item to pay off the interest.
D. The lender cashes a postdated check.
Explanation:
A pawn-loan is a credit facility based on collateral provided. Pawnshop issues pawn-loans without any credit history checking. The borrower presents an item of value, either jewelry, electronics, mobile gadgets, or other items resellable to other customers.
A pawnshop typically issues short term loans. The credit period is mostly 30 days. The borrower is should to repay the loan amount plus interest by end of month to redeem their collateral. Due to the short credit period and the high risk of lending, pawnshops do not usually allow installment repayments.
Answer:
The correct answer is Double-declining-balance. The highest net income in year 2 is 6000.
This higher net income don´t mean the machine was used more efficiently under this depreciation method.
Explanation:
In the file attached you will find a depreciation schedule for each of the alternative methods.
Each method need different calculus.
Straight-line
depreciation expense=(Original Value -Residual Value)/Useful life=
depreciation expense=4400
Units-of-production
estimated productive life 10000
Units of Production Rate=(Original Value -Residual Value)/estimated productive life=2,2
Double-declining-balance.
Depreciation rate = 1/useful life *100= 20,00%
Answer:
d. decrease the firm's WACC.
Explanation:
As per WACC formula
WACC = ( Weight of Common Equity x Cost of Common Equity ) + ( Weight of Common Debt x Cost of Common Debt x ( 1 - Tax rate ) ) + ( Weight of Preferred Equity x Cost of Preferred Equity )
By assuming the values to prove the answer
Weights
Common equity = 55%
Preferred Equity = 15%
Debt = 30%
Costs
Common equity = 15%
Preferred Equity = 8%
Debt = 12%
Tax rate is 15%
Placing values in the formula
WACC = ( 55% x 15% ) + ( 30% x 12% x ( 1 - 15% ) ) + ( 15% x 8% )
WACC = 8.25% + 3.06% + 1.2% = 12.51%
Keeping others values constant, Now increase the Tax rate to 25% and placing vlaues in the formula
WACC = ( 55% x 15% ) + ( 30% x 12% x ( 1 - 25% ) ) + ( 15% x 8% )
WACC = 8.25% + 2.7 + 1.2% = 12.15%
Hence the WACC is decreased from 12.51% to 12.15% when the tax rate is increased from 15% to 25% keeping other values constant.
Answer:
The answer is: Complementary goods and services
Explanation:
Complementary goods and services are used with another good or service. For example, sugar is complementary to coffee, fuel is complementary to cars, etc.
Usually when the price or the quantity demanded of a complementary good or service changes, the other complementary good will be affected.
In this question, we are told that restaurants and lodging facilities are complementary to beer. So if the price of beer decreases (increasing the quantity demanded), the demand for restaurants and lodges will increase.