To calculate the weighted average cost, divide the total cost of goods bought by the numeral of units available for sale. To find the cost of goods available for sale, you'll need the total amount of beginning products and recent purchases.
<h3>What is the weighted average cost method?</h3>
In accounting, the Weighted Average Cost (WAC) method of inventory valuation uses a weighted standard to determine the amount that goes into COGS and inventory. The weighted middle cost method divides the cost of goods available for sale by the number of units available for sale
<h3>How do you calculate the weighted moderate cost of capital?</h3>
WACC is calculated by multiplying the cost of each money source (debt and equity) by its appropriate weight by market value, and then adding the outcomes together to select the total.
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Answer:
7.75%
Explanation:
We are given the present and future value of the bonds, the payments, and the number of payments, but we must determine the discount rate. Since I like to use excel, I will prepare a payment a series of cash flows to determine the internal rate of return:
- initial cash flow = -1,128
- 37 cash flows = 88
- 38th cash flow = 1,088
using the IRR function:
=IRR(-1128,88 ... 37 times,1088) = 7.75%
In order for Bdj Co. to be able to sell their bonds at par value, they should offer a 7.75% coupon rate.
Answer:
you should hold <u>76</u> shares of stock per 100 put options to hedge your risk.
Explanation:
Current stock price, S = $85
Risk-free rate of return, r = 5%
Standard Deviation, v = 25%
Exercise price, X = $90
expiration date, t (in years) = 30 days = 1 month = 1/12 = 0.083333 years
The option price (OP) is given by the formula:
![d_1 = [ln(S/X) + (r + v^{2} /2)t]/vt^{0.5}\\d_1 = [ln(85/90) + (0.05 + 0.25^{2} /2)*0.08333]/(0.25*0.08333^{0.5})\\d_1 = -0.6982](https://tex.z-dn.net/?f=d_1%20%3D%20%5Bln%28S%2FX%29%20%2B%20%28r%20%2B%20v%5E%7B2%7D%20%2F2%29t%5D%2Fvt%5E%7B0.5%7D%5C%5Cd_1%20%3D%20%20%5Bln%2885%2F90%29%20%2B%20%280.05%20%2B%200.25%5E%7B2%7D%20%2F2%29%2A0.08333%5D%2F%280.25%2A0.08333%5E%7B0.5%7D%29%5C%5Cd_1%20%3D%20-0.6982)
Using the pro-metric calculator for the cumulative normal distribution:
N(-d1) = N(- (-0.6982)) = N(0.6982) = 0.75747
N(-d2) = N(-(-0.7704)) = N(0.7704) = 0.77947
![OP =[ 90e^{(-0.05*0.08333)} * 0.77947] - (85*0.75747)\\OP = 5.48](https://tex.z-dn.net/?f=OP%20%3D%5B%2090e%5E%7B%28-0.05%2A0.08333%29%7D%20%2A%200.77947%5D%20-%20%2885%2A0.75747%29%5C%5COP%20%3D%205.48)
Note that N(-d₁) = 0.76
This means that 76/100 (i.e to hedge your risk, you should hold 76 per 100 put options )
Answer:
1. Purchasing a new home entertainment system would be considered by most consumers as a decision with high buyer involvement. When someone is concerned with the outcome of the process, they will spend more time learning about product options and become more emotionally connected to the process and the decision. For example, they might seek out product reviews in Consumer Reports and online sources to discover information that will assist in the choice decision. A high level of involvement usually means the entire process takes longer.
2. Buying gas for your car would be considered by most consumers as a decision with low buyer involvement. Decisions are often made almost automatically, often out of habit, with little involvement in the purchase decision.
Explanation:
