Answer: Cost to purchase the options on the exercise date = $1000
Explanation:
Given:
Stock options awarded = 10
Right to buy shares = 10
Exercise price = $10
We'll compute the cost as follow:
Cost to purchase the options on the exercise date = Stock options awarded × Right to buy shares × Exercise price
Cost to purchase the options on the exercise date = 10×10×10
Cost to purchase the options on the exercise date = $1000
<u><em>Therefore, the correct option is (d)</em></u>
Answer:
understate the impact of a tax for substitutes and overstate the impact for complements.
Explanation:
Partial equillibrum analysis is consideration of only a part of the market to attain equillibrum. It is based on data that has restricted range. For example when the price of one good changes while others are held constant. This does not consider real life scenario that multiple prices are changing.
In this type of analysis there is less emphasis on tax on subsititutes and more for complements. This is because a single product is being considered and compliments share similar demand pattern so they are considered more.
Answer:
Rate of return is 2.52%
Explanation:
Investment in 1925 = $10,000
Portfolio value in 2000 = $64,402.23
Number of years = 2000-1925 = 75 years
Rate of return = ?
Using following formula to calculate rate of return.
A = P x ( 1 + r )^n
64,402.23 = 10,000 x ( 1 + r )^75
64,402.23 / 10,000 = ( 1 + r )^75
6.440223 = ( 1 + r )^75
1.02515 = 1 + r
r = 1.02515 - 1
r = 0.02515
r = 2.52%