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BigorU [14]
3 years ago
12

"A customer holds 10 ABC Jan 60 Call contracts. ABC Corporation is paying a 20% stock dividend. On the ex date, the contracts wi

ll show as:"
Business
1 answer:
Viefleur [7K]3 years ago
3 0

Answer:

On the ex date, the contracts will show as:

10 ABC Jan 60 Calls

The customer must exercise call contracts to buy the stock prior to the Ex-Date

Explanation:

The reason is that if the customer is not exercising the call contracts then it will not be able to receive the stock dividend. Furthermore, the OCC doesn't adjust the contract because of the dividend announcement prior to exercise of contract. This means it will only adjust if the contract is exercised.

The settlement of the exercise takes around 2 business working days, hence the customer must exercise the option 2 days earlier to the ex-date.

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Let's assume that a firm produces 40 products. Its total weekly cost (TC) at this output is $1200. This includes TVC and TFC. We
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Answer:

$15

Explanation:

The computation of the average fixed cost is shown below:

As we know that

Average fixed cost is

= Total fixed cost ÷ Quantity

where,

Total fixed cost is

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= $1,200 - $200 × 3

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And the quantity is 40 products

So, the average fixed cost is

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2 years ago
A(n) _____ is an intermediary who takes title to the goods it handles and then distributes these goods to retailers, other distr
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3 years ago
Your review of the ledger reveals that each account has a normal balance. You also discover the following errors. 1. The totals
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Answer:

Debit side $29,660

Credit side $29,660

Explanation:

Preparation of a correct trial balance

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Corrected Trial Balance May 31, 2015

DEBIT SIDE

Cash $5,023

($5,050 +$450 - $477)

($530-$53=$477)

Accounts Receivable $2,030

($2,570 - $540)

Prepaid Insurance $930

($830 + $100)

Supplies $450

Equipment $12,750

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Salaries and Wages Expense $4,530

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Advertising Expense $1,447

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Utilities Expense $900

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Dividends $1,600

TOTAL $29,660

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Unearned Service Revenue $690

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Service Revenue $8,960

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Credit side $29,660

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Explain in three sentences what “a decision to communicate constructively” means
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