Answer:
The answer is: net economic loss = -$750
Explanation:
To determine the economic gain or loss of this investor we can use the following formula:
economic loss = {[(current stock price - future stock price) x number of stocks] + [(future stock price - strike value) x number of stocks]} - cost of call option
economic loss = {[($45 - $54) x 100] + [($54 - $50) x 100]} - $250 =
economic loss = [(-$9 x 100) + ($4 x 100)] - $250 = (-$900 + $400) - $250
economic loss = -$500 - $250 = -$750
Answer: <u><em>$3,600,000 is the amount Wood should capitalize as the cost of acquiring Pine's net assets.</em></u>
Given:
Wood Corp. issued 100,000 shares of its $20 par value
The market value of Wood's common stock on August 31 was $36 per share.
Wood paid a fee of $160,000 to the consultant who arranged this acquisition.
Costs of registering and issuing the equity securities amounted to $80,000.
∴ Cost of acquiring = 100,000 shares issued × $36 per share
= $3,60,000
The US started collecting federal income tax in 1913
Answer:
a. 2005 2006 2007 2008
Holding period return 10% -7.27% 5.88% -100
b. Geometric average return = -100
c. Dollar weighted return= -2.70%
Explanation:
Holding period return = 
=
* 100
= 10%
geometric average return = (( 1+r)*(1+r2)*(1+r3)*(1+r4))^1/4 - 1
dollar weighted return = (initial investment + additions) / (initial investment -withdrawals)
= ( 5000+ 2750)/(5000-3825-4050)
= 7750/-2875
=
Answer:
<u>True.</u>
Explanation:
This statement is true. In Kenya there is a system called M-PESA, which can be defined as a more developed payment system worldwide, this system acts as a tool that allows payments and purchases to be made via cell phone.
This system revolutionized the lives of the citizens of that region, due to the ease of being able to carry out commercial transactions and manage their money without needing a bank.
