Answer:
the value of the short forward contract is -0.49
Explanation:
the computation of the value of the short forward contract is shown below:
= (Delivery price - current forward price)× e^(risk free interest rate × no of months ÷ total number of months)
= ($42.25 - $42.75)× e^(-7.90% × 4÷12)
= -0.49
Hence, the value of the short forward contract is -0.49
Therefore the same should be considered
Answer:
P5 = 10.41
Explanation:
To calculate the stock value with dividends for the fifth year the following formula would be used:
The first Dividend Paid.- G = Growth Rate.
- R = Required Return.
$1.15
Growth Rate = 12.3%
R = 0.75%
P5 = ?
- Substituting the values in the formula
Answer:
True Statements are:
B, C, D
Explanation:
All the capital cost incurred for an asset acquisition is added to the cost of capital asset.
The cost of capital asset here will include the following,
Replacement of wiring will not form part of cost of building, as is associated with fittings and computers, so either it will be clubbed in furniture and fittings or computers,
Replacement of roof is a part of building and shall be added to cost of building.
Painting, plumbing etc: will not form part of cost of building, as will be added to revenue expenditure and not the capital expenditure.
Thus with the above clarification of nature of expense, Statement B, C, and D are true.
Answer:
because answer key you give you answer
Specialization in production will increase output.
As any specialization in production will be achieved by specialized labor or technology, both the factor will produce per unit time and gives a comparative advantage.
Specialization is a production method that focuses on the production of a limited range of goods for a company to achieve a higher level of efficiency.
The more they focus on their work, the more efficient they are in that work. This means less time and money is spent producing goods. In other words, you can produce more goods in the same amount of time and money.
Learn more about Specialization in production here:brainly.com/question/24448534
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