PLEASE HELP ASAP

3. You have $100 to invest. The price of XYZ stock is $100. You sell short one share of XYZ and then invest all available funds

tigry1 [53]

Answer:

HPR = holding period Return is 20%

Explanation:

Given original Investment = $100

Short sale proceeds for 1 share = $100

Investment made of $100 + short sale proceeds of $100 at 5% YTM.

So Maturity Value = Investment x (1+YTM)^number of years

= 200 x (1 + 0.05)^1 = 210

Therefore, In order to cover Short sale of 1 share, we will have to buy 1 share at a closing value of $90

As such, holding period Return = (Investment proceeds from ZCB - Buying price of stock - Investment amount) / Investment Amount

= (210 - 90 - 100) / 100 = 0.2 or 20%

Hence, HPR = holding period Return is 20%

5 0

3 years ago

the total estimated cost of attending a public year to year college is 2265. The cost of attending a college is expected to incr

Anna11 [10]

5% of 2265$ is 113,25$
Because 5% is 5/100 so 5 x 2265$ = 11325$
11325$ : 100 = 113,25$
Second year cost is the first year’s plus 5% so
2265$ + 113,25$ = 2378,25$ (second year cost)

8 0

2 years ago

Kennedy Company uses the balance sheet approach in estimating uncollectible accounts expense. The company prepares an adjusting

s2008m [1.1K]

Answer:

The amount of uncollectible account expense was recorded for July was $9,500

Explanation:

According to the given data we have the following:

Accounts written off amount=$5,200

Increase in Allowance for Doubtful Accounts=$4,300

Therefore, in order to calculate the amount of uncollectible account expense was recorded for July we would have to make the following calculation:

Uncollectible accounts expense for July= Accounts written off+ Increase in Allowance for Doubtful Accounts

Uncollectible accounts expense for July= $5,200+$4,300

Uncollectible accounts expense for July=$9,500

The amount of uncollectible account expense was recorded for July was $9,500

3 0

3 years ago

At Lequals86, Kequals90, the marginal product of labor is 8 and the marginal product of capital is 2. What is the marginal rat

Sidana [21]

Answer:

0.25

Explanation:

The marginal rate of technical substitution (MRTS) can be described as the rate of a reduction is one factor to maintain the same production level when another factor is increased.

Given that labor is measured on the horizontal axis, the MRST of K for L can be calculated as follows:

$MRST_{KL} = \frac{MP_{K} }{MP_{L} }$

Where;

MPK = Marginal product of capital = 2

MPL = Marginal product of labor = 8

Substituting the values into the equation, we have:

$MRST_{KL} = \frac{2}{8} =\frac{1}{4} = 0.25$

This implies that 0.25 of capital must be given up to have one unit of labor.

3 0

2 years ago

Oak Island Amusements Center provides the following data on the costs of maintenance and the number of visitors for the last thr

Semmy [17]

Answer:

a. (i) $1.40

(ii) $190,000

b. $3,410,000

Explanation:

The computation of fixed cost of maintenance annually and the variable cost of maintenance per visitor is shown below:-

a. (i) Variable cost per visitor = (Maintenance cost at highest number of visitors - Maintenance cost at lowest number of visitors) ÷ (Highest number of visitor - Lowest number of visitor)

= ($3,830,000 - $2,773,000) ÷ ($2,600,000 - $1,845,000)

= $1,057,000 ÷ $755,000

= $1.40

(ii) Fixed cost of maintenance = Total costs - Variable cost at that level

= $2,773,000 - $1,845,000 × $1.40

= $2,773,000 - $2,583,000

= $190,000

b. The computation of estimated maintenance costs is shown below:-

Estimated maintenance costs = Fixed costs + Variable cost per visitors × Number of visitors

= $190,000 + 2,300,000 × $1.40

= $190,000 + $3,220,000

= $3,410,000

6 0

3 years ago