Answer:
$65
Explanation:
The calculation of the break even price for this position is given elow:
Break even price is
= Strike price - premium
= $70 - $5
= $65
The stock goes increase i.e. upwards to $65 so the amount that lose is only $5 but it declines than the stock would be $0
Therefore, the break even price of this position is $65
So, by using the above formula we can get the break even price and the same is to be considered
Answer:
Only those transactions that involve cash payments or cash receipts are recorded in the cash journal:
May 1, C. Li contributes cash tot he company
Dr Cash 12,000
Cr C. Li., capital 12,000
May 15, cash received from bank loan
Dr Cash 8,500
Cr Notes payable 8,500
May 18, collections from E. James
Dr Cash 1,250
Cr Accounts receivable 1,250
May 24, merchandise sold to B. Cox
Dr Cash 950
Cr Sales revenue 950
Dr Cost of goods sold 900
Cr Inventory 900
The May 7 and May 9 transactions should be recorded in the sales journal but not in the cash journal since they involve accounts receivables. COGS from May 24 transaction should also be recorded in the cash journal because the sales were on cash.
Answer:
NPV = $10.708 million
Explanation:
<em>The base case NPV is that calculated by discounting the after-tax cash flow by the cost of equity based on asset beta. The base-case NPV does not consider the financing effect of the any particular finance source used to fund the project.</em>
NPV = PV of cash inflow - Initial outlay
After-tax cash flow = 300,000×15= 4.5 million
PV of cash inflow = cash inflow × A × (1- (1+r)^(-n)/r
4.5 ×( 1- (1.16^-5)/0.16= 25.508 million
NPV = PV of cash inflow - Initial outlay
NPV = 25.508 million - 14.8 million
NPV = $10.708 million
The state income tax that should be paid by Emmet Michael's is $1,336.50.
- The calculation of the state income tax paid by Emmet Michael is as follows:
= (Gross pay - exemption amount) × income tax rate
= ($31,700 - $2,000) × 4.5%
= $29,700 × 4.5%
= $1,336.50
Therefore we can conclude that the state income tax that should be paid by Emmet Michael's is $1,336.50.
Learn more about the gross pay here: brainly.com/question/14690804