Answer:
$855,000
Explanation:
The computation of the operating income is shown below:
Operating income at 115,000 units is
= (Selling price per unit - variable cost per unit) × sales volume - fixed cost
= ($16 - $8) × 115,000 - 65,000
= $855,000
Hence, the operating income at 115,000 units is $855,000
All other things are irrelevant. Hence, ignored it
Answer:
B. the pain of losing $1,000 on a bet exceeds the pleasure of winning $1,000 on a bet.
Explanation:
A risk averse person is an individual or person rather who prefers lower returns with known risk than higher returns with unknown or higher risks. In this case, the individual prioritizes preservation of capital at hand over the potential of a more than average return. In this scenario, for a risk averse individual, the pain of losing $1,000 on a bet exceeds the pleasure of winning $1,000 on a bet based on the high uncertainty attached to winning the $1000 bet.
The company's cost of equity is
% of retained earnings according to the capm.
The cost of equity for a corporation is the amount that the market is willing to pay to own an asset and take on ownership risk. The two common methods for determining the cost of equity are the capital asset pricing model and dividend capitalization model. On the right side of the balance sheet, you can see a list of the company's debt and equity accounts. The cost of capital refers to the price a business must pay to finance its operations through debt, equity, or a mix of the two.
b =
rs = rRF + b(RPM), and rRF + b(RPM) =
% RPM
% were lent to us.
Learn more about cost of equity here
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Answer:
The home needs to sell for $105,263.16 for the seller to receive net of $100,000.00
Explanation:
The amount that the home needs to sell can derived from the net to seller's formula given as: Net to seller = Sale Price * (100% - commission rate)
Net to seller=$100000
Sale price is unknown
commission rate is 5%
$100000=sale price*(100%-5%)
$100000=sale price *95%
sale price =$100000/95%
sale price =$105263.16
For the seller to receive $100000 after 5% commission the property must e sold for $105,263.16
Answer:
C. Sell a straddle
Explanation:
Considering the following calculation: Sell a straddle = sell a put + sell a call
and,
Premium income for selling a straddle = (P + C )100 = ($3 + $4)(100) = $700.
a short straddle involves simultaneously selling a put option and call option with the same underlying asset, same exercise price and expiration date
By Selling a 3 month put option with exercise price of $40 one will get $3 (inflow of $3)
Simulatenously By Selling a 3 month call option with exercise of $40 one wiil get $4(inflow of $4)
Thus the total premium income of selling a straddle is $7