Answer:
d). The lessee must increase the present value of the minimum lease payments by the present value of the option price.
Explanation:
The bargain purchase option refers to the clause mention in a lease contract or agreement which provides the lessee
or buy a leased asset from a person at the end of the
at a price which is substantially below its
.
In bargain purchase option, the present value of a
can be increased by bargain purchase option. So the lessee must
the present value of
by the present value of the
This is the impact of the bargain purchase option on the present value of
.
Thus, the correct option is (d).
Answer: C) limit the downside risk of asset ownership
Explanation:
The protective put is a strategy I risk-management which is utilized by the investors in order to help prevent a loss in an asset or stock.
Protective puts helps to act as an insurance by giving protection from the decline of the price of the asset.
Answer:
b. 16% defectives
Explanation:
Let the number of units shipped be N
Let the defect rate be y%
Cost of replacing defectives once shipped = (y/100)×N× 2.5 ........equation (1)
Cost of 100% inspection = N × 0.4 .........equation (2)
At the indifference point, both costs, that is the replacement cost and inspection cost are equal. Therefore, we make both equations (1) and (2) equal.
N × 0.4 = (y/100)×N× 2.5
100 × 0.4 = y ×2.5
y = 40/2.5 = 16
She is indifferent at 16% defectives
Answer:
d. $132,000
Explanation:
Sigma Corporation holds the stock of Epsilon Corporation and is subsidiary for the Sigma. The dividend declared by of $100,000 is entirely for the sigma whereas Sigma Corporation also holds 20% of the shares of Intergalactic Corporation. The dividend of $40,000 will be calculated in the dividend amount of Sigma but 20% will be deducted.
$100,000 + $40,000 * 80% = $132,000
Um, Hello there. The answer to your question is probably going to be.
<span>
The bullet points beneath a one-line mission statement often serve as
A. value statements to show how the mission will be achieved.
B. a timeline for achieving the company's goals.
C. lesser goals to consider for the future.
D. a reminder of the one-line statement.</span>