The discount lost account is used under the net method for inventory.
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What is discount?</u></h3>
- When a security is trading for less than its intrinsic or basic value, it is said to be trading at a discount in the world of finance and investment.
- When a bond's price is trading below its par value, or face value, in the fixed-income market, a discount is present.
- The extent of the discount is equal to the difference between the price paid for a security and its par value.
- Bonds may trade at a discount for a variety of reasons, such as rising interest rates, problems with the underlying company's credit, or riskiness when compared to comparable bonds.
The discount rate, an interest rate used to calculate the time worth of money, should not be confused with a discount.
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Answer:
cost of capital 16%
Explanation:
SML formula:
r_f = 3%
β = 1.3
r_m = 13%
0.03 + 1.3(0.13-0.03)
firm's required return = .16 = 16%
Answer
Current Price of Bond M = $25,202
Current Price of Bond N = $7,102
The answer and procedures of the exercise are attached in the following archives.
Step-by-step explanation:
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
$39000
DOWN PAYMENT MEANS THE AMOUNT YOU PAY PAY AT THE TIME OF THE DEAL OF PURCHASING THE HOUSE.THERE IS USUALLY A PERCENTAGE OF THE TOTAL AMOUNT AND IS PAID IN A LUMP SUM.
20& OF THE COST OF HOUSE OUT HERE
I.E. 20% OF $195000
= 0.2 * 195000
=$39000
Answer: $670
Explanation:
Since the quoted price of $.35, the cost to purchase two WXO 30 call option will be: = $0.35 × 2 = $0.70
Then, the price of RADM 30 call option contract will be calculated as;
= $33.7 - $30
= $3.70
The net gain on one RADM 30 call option will then be:
= $3.70 - $0.35
= $3.35.
Therefore, the net gain on 2 RADM30 call options will be:
= $3.35 × 2
= $6.70
Since there are 100 shares in a option contract, the gain will be:
= $6.70 × 100
= $670
