Answer:
B). 365 days by the accounts receivable turnover.
Explanation:
This is said to be the time it takes for a business to receive money owed by its client in its amount receivable(AR).
The average collection period formula is the number of days in a period divided by the receivables turnover ratio. The numerator of the average collection period formula shown at the top of the page is 365 days. For many situations, an annual review of the average collection period is considered.
Answer:
$19.9
Explanation:
According to the given situation the computation of pre-tax net profit is shown below:-
Net pre-tax profit = Option exercised per share + Actual stock price at the end + Profit - Option premium
= $85 + $60 + $25 - $5.10
= $19.9
Therefore for computing the pre-tax net profit we simply applied the above formulas.
Answer:
d. decrease, and U.S. net capital outflow decreases.
Explanation:
net exports = total exports - total imports
in this case, imports increase, so net exports will decrease
The net capital outflow represents the money being invested in a country. If foreign investors invest in the US economy then the net capital outflow will increase. But if US investors invest in foreign economies, the net capital outflow will decrease. In this case, the US company paid the foreign company in US dollars, therefore, the foreign company now has a US asset (US dollars).
Answer:
Correct answer is option A
$0
Explanation:
In case of non-statutory stock option, income which is fair market value less any cost incurred for stock options, is included when the stock options are exercised.
Answer:
Put options give the holder the right to sell the underlying stock to the seller of the put option.
Put options are advantageous when the price in the market falls below the strike price of the option because the buyer will be able to sell at above market value and make a profit.
The asking price for a strike price of $9.00 is listed to be $0.33 and this is the premium paid by the buyer of the Put Option.
<h2>
1. Return if stock sells for $8.00</h2>
= Amount received/ Amount spent
= (No. of shares * ((Strike price - Market price) - Premium paid) ) / (No. of share * premium)
= (2,300 shares * (($9.00 - 8.00) - 0.33))/ ( 2,300 * 0.33)
= 2.03
= 203 %
<h2>
2. Return if stock sells for $10.00. </h2>
As this is an option, the investor can decide not to sell to the seller. The market price is higher than the strike price so they will not sell to the seller of the option and the return will be;
= (No. of shares * - Premium paid) ) / (No. of share * premium)
= (2,300 shares * - 0.33)/ ( 2,300 * 0.33)
= -1
= -100 %
