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zzz [600]
1 year ago
7

in 2018, a company employee received an option to purchase the company's stock at $45 per share. if the stock is trading at $40

a share in 2020, the employee will most likely
Business
1 answer:
erma4kov [3.2K]1 year ago
7 0

Based on the stock's price in 2020, the employee will most likely not bother to exercise the options.

<h3>When are options exercised?</h3>

Options are exercised by employees or other parties when the market price of the underlying stock is more than the price that the option can be redeemed at because this would lead to profit.

The underlying stock here is trading at $40 which is less than the price of redeeming the option so the employee will not exercise the options.

Find out more on exercising options at brainly.com/question/25750529

#SPJ1

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True or False:
rusak2 [61]

Answer:

Check the explanation

Explanation:

Efficient market theory states that the security price reflects all the available information of the market. It means there is no reason to believe that prices are incorrect.  

Thus, the given statement is false.  

The past data is not useful for decision making. Information of past trends may not help the investor to earn abnormal returns.  

The statement is consistent with weak form efficiency as current price reflects the past price movements.  

Thus, the statement belongs to weak form efficiency.  

The stock price will increase and settle at a new equilibrium level.  

4 0
3 years ago
Burns Industries currently manufactures and sells 18,000 power saws per month, although it has the capacity to produce 33,000 un
trasher [3.6K]

Answer:

Burns Industries

Using an incremental analysis approach, Burns should consider accepting this special order only if the price per unit offered by Allen is at least:

above $38 (the variable cost per unit).

Explanation:

a) Data and Calculations:

Monthly production and sales units = 18,000

Production capacity per month = 33,000 units

Costs at the 18,000-unit-per-month level of production:

Variable costs = $38

Fixed costs =        23

Total per unit =  $61

Selling price per unit = $78

Special offer for 4,800 saws per month, without changing the fixed manufacturing costs.

b) Incremental analysis approach is a management decision technique that specifies that only relevant, marginal, or differential costs should be taken into account.  It rules out the inclusion of sunk or fixed costs, which do not change between alternatives.

3 0
3 years ago
Which trade strategy have developing countries used to replace commodity exports with exports such as processed primary products
Igoryamba

Answer: Export promotion

Explanation: Economic policies made by the government in other to encourage the sale and marketing of it's product or derivative of the nation's natural resources beyond the local market, allowing foreign or international trading of goods produced locally. With export promotion, commodity export which often involves selling raw materials as is, developing countries can take advantage of the several derivatives of a certain raw material before preparing for export which will boost revenue and also ensure that the local market get more in return. Export promotion strategies has allowed local industries sit up and rise to the challenge and compete with foreign rivals in the processing, production and manufacturing of goods.

3 0
3 years ago
How do long term goals differ from short term goals
Lyrx [107]

Short term goals are anywhere from one week, to less then one year to complete. Long term goals are something that takes you a year or more to complete

5 0
3 years ago
Read 2 more answers
Analysis of Accounts Receivable and Allowance for Doubtful Accounts Steelcase, Inc. reported the following amounts in its 2014 a
Naddika [18.5K]

Answer:

b. Gross Receivable = Net receivable +Allowance

2014 = $306.8 + $13 = $319.80

2013 = $287.3 + $14.5 = $301.8

Allowance as a % of Gross receivable = Allowance / Gross receivable

2014 = $13/319.80 = 0.041 =  4.1%

2013 = $14.5/301.8 = 0.015 = 1.5%

c. Average Net Accounts receivable = (Accounts receivable, net 2014 + Accounts receivable, net 2013) / 2 = ($306.8 + $287.3] / 2 = $297.05

Receivable Turnover = Net credit sales / Average Net Accounts receivable

Receivable Turnover = $2,989 / $297.05

Receivable Turnover = 10.06 Times

d) Cash received in 2014 = Beginning Gross receivables + Net sales - Ending Gross receivables-Adjustment in allowance (Write-off 2014)

Cash received in 2014 = $301.8 + $2,989 - $319.8 - $4.3

Cash received in 2014 = $2,966.7

Increase in customer deposits = $16 - 13.5 = $2.5

Total Cash received from customers in 2014 = Cash received in 2014 + Increase in customer deposits

Total Cash received from customers in 2014 = $2,966.7 + $2.5

Total Cash received from customers in 2014 = $2969.20

6 0
3 years ago
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